Suncor Energy Inc. · TSX:SU
Suncor Energy — Q2 2022 Earnings Presentation
15 slides from Suncor Energy's earnings presentation, Aug 4, 2022
Slide 1: Investor Information Q2 2022
SUNCOR ENERGY Investor Information Q2 2022 Published August 4, 2022 SUNCOR ENERGY
Slide 2: Integrated Model
Integrated Model 2020 / 2021 AVERAGES OF PRODUCTS SOLD TO MARKET REFINED PRODUCTS ~45% AFFO1 441 kbpd2 SYNTHETIC CRUDE OIL OFFSHORE ~30% AFFO1 GASOLINE (45%) ~15% AFFO1 BITUMEN 307 kbpd2 DISTILLATES (45%) 93 kbpd2 ~10% AFFO1 ASPHALT (5%) OTHER (5%) 143 kbpd2 HIGH BASE PROCESSING, VALUE ENERGY INFRAS
Slide 3: Asset Value Maximization
500 Asset Value Maximization Converting hydrocarbons into $150.00 2020 / 2021 AVERAGES1 ($CAD) consumer products (Refer to pages 39 - 44 in Supplemental IR Deck for full reconciliation) Product Value Transportation Cost 441 Product Margin Processing Cost kbpd2 400 Royalty Cost Feedstock Cost $120.00
Slide 4: Operations & Consumer Network
Operations & Consumer Network 28+ 29 year year Oil Sands Reserve Life Index1 ~25 mmbbl storage Western Canada ~1900 ~1875 Petro Canada sites2 ~15 mmbbl storage Eastern Canada Only refinery in Colorado ~10 mmbbl storage Central US & Gulf Coast Pipeline under construction Oil & Refined product storage
Slide 5: The Suncor Advantage
The Suncor Advantage1 L E A D I N G S U S T A I N A B I L I T Y T R A C K R E C O R D A C R O S S B U S I N E S S ENERGY PROCESSING, SOURCES INFRASTRUCTURE CONSUMER Access global markets through & LOGISTICS CHANNELS sale of unprocessed energy products Processing & using extensive Refining hydrocarbo
Slide 6: Robust Business Model, Focus on Shareholder Returns
Robust Business Model, Focus on Shareholder Returns1 Industry Leading Integrated Model Cash Generation Track Record of Top Tier Shareholder Returns (C$ billion) 7 out of 10 years Industry* leading ~60 %cumulative of 10yr AFFO 2 cash returns (less sustaining capex4) $20 returned to shareholders $15 T
Slide 7: Disciplined Capital Allocation
Disciplined Capital Allocation1 O R D E R O F P R I O R I T Y Annual AFFO2 Allocation Net Debt3 (incl. ~$3b cap leases) Sustaining Economic Share Buyback5 / Net Debt Reduction3 Dividend5 ($ billion) Capital4 Capital4 (%) 12 – 15 50 / 50 ~$1.7 9 – 12 $1.88/ share ~$3.4 billion 75 / 25 (2030 target ex
Slide 8: $2.15B Opportunity Offsetting Market Headwinds
$2.15B Opportunity Offsetting Market Headwinds1 Structural and sustained free funds flow2 for years 2021 – 2025 inclusive3, through margin improvements, operating & sustaining capital cost reductions, & growth opportunities Projects Implemented by 2023 2024 – 2025 Deployment Value Drivers Coke Fired
Slide 9: 2022 Capital Allocation
2022 Capital Allocation1,2 ECONOMIC ($ millions) Q1 Q2 Rem 2022 2022 Total INVESTMENT Decline Mitigation 170 198 ~355 – 455 ~725 – 825 CAPITAL3 E&P 95 123 ~230 – 280 ~450 – 500 ~$1.7B In-Situ Well Pads 75 75 ~125 – 175 ~275 – 325 High grading capital spend on quick payout, $2.15B Free Funds 255 163
Slide 10: Our Sustainability Journey
Our Sustainability Journey 1995 2000 2005 2010 2015 2016 2017 2018 2019 2020 2021 First First Set four Set long- First climate risk Completed Canada’s Invested in CCUS environment renewable long- term term carbon report first coast-to-coast EV technology with report energy environmental and social c
Slide 11: Our GHG Emissions Objective – net zero by 2050
Our GHG Emissions Objective – net zero by 20501,2 Opportunities for reducing emissions across our value chain 10 Mt per year reduction by 20301,2 up to ~40% up to ~20% up to ~20% up to ~50% Reduce our own emissions through energy efficiency, fuel switching and CCUS up to ~50% Help reduce others’ emi
Slide 12: 2022 Capital & Production Guidance
2022 Capital & Production Guidance1 CAPITAL EXPENDITURES PRODUCTION & OPERATING COSTS Capital2 Economic Production4 Cash Operating Costs5 ($ millions) Investment3 (boepd) ($/bbl) Oil Sands 3,325 – 3,450 25% Oil Sands Operations 395,000 – 415,000 $27.00 – $30.00 E&P 450 – 500 100% Fort Hills (54.11%
Slide 13: Advisories
Advisories Forward-Looking Statements – Forward-Looking Statements – This dividends declared and share repurchases; the sufficiency of budgeted presentation contains certain “forward-looking statements” within the capital expenditures in carrying out planned activities; risks inherent in Non-GAAP Me
Slide 14: Slide Notes
Slide Notes Slide 2------------------------------------------------------------- maintenance capital expenditures based on the company’s current Slide 9 -------------------------------------------------------------- (1) Adjusted funds from operations (AFFO) is a non-GAAP financial business plans for
Slide 15: Investor Relations Contacts
Investor Relations Contacts Trevor Muhammad Christian Matilda Stacey Bell Usman Leung Kragulj Hunter Vice President IR Director IR Manager IR Manager IR Coordinator IR tgbell@suncor.com muusman@suncor.com chrileung@suncor.com mkragulj@suncor.com sthunter@suncor.com Visit us at the Investor Centre on