Suncor Energy Inc. · TSX:SU
Suncor Energy — Q3 2020 Earnings Presentation
18 slides from Suncor Energy's earnings presentation, Oct 29, 2020
Slide 1: Investor Information Q3 2020
SUNCOR ENERGY Investor Information Q3 2020 Published October 28, 2020 SUNCOR ENERGY
Slide 2: Integrated Model
Integrated Model 2018 / 2019 AVERAGES OF PRODUCTS SOLD TO MARKET REFINED PRODUCTS ~50% FFO1 470 kbpd2 SYNTHETIC CRUDE OIL OFFSHORE ~25% FFO1 GASOLINE (43%) BITUMEN 309 kbpd2 DISTILLATES (42%) ~15% FFO1 ~10% FFO1 ASPHALT (6%) OTHER (9%) 104 kbpd2 163 kbpd2 HIGH BASE PROCESSING, VALUE ENERGY INFRASTRU
Slide 3: Asset Value Maximization
Converting 500 Asset Value Maximization hydrocarbons into consumer products $150.00 2018 / 2019 AVERAGES1 ($CAD) (Refer to pages 36 - 39 in Supplemental IR Deck for full reconciliation) 470 Product Value Transportation Cost kbpd3 Product Margin Processing Cost ~1/3 margin from 400 Royalty Cost Feeds
Slide 4: Capital Allocation & Breakeven Sensitivities
Capital Allocation & Breakeven Sensitivities Disciplined Capital Allocation1 O R D E R O F P R I O R I T Y Annual FFO1,3 allocation (C$B) Sustained Balance price outlook2 sheet leverage (WTI USD$/bbl) metrics Sustaining Economic Buyback Dividend5 capital1,4 investment6 target5 $35 - $45 Upper range
Slide 5: Value Creation & Cost Management
Value Creation & Cost Management Leading FFO/boe2 & Total Operating Expenses Fort Hills & $1B target Value over volume Hebron come cost Total Operating reductions5 FFO2/boe Elevated 2019 costs due to Expenses ($B) online & ramp higher Y/Y FFO1 (+$800M) in up during year 12 $35 production vs. bitumen
Slide 6: Operations & Consumer Network
Operations & Consumer Network 29 year Oil Sands Reserve Life Index1 ~25 mmbbl storage Western Canada ~1,850 PetroCanada sites2 ~15 mmbbl storage Eastern Canada Only refinery in Colorado ~10 mmbbl storage Central US & Gulf Coast OIL & REFINED PRODUCT STORAGE (SUNCOR OPERATED) CURRENT PIPELINES PROPOS
Slide 7: 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 PROCESSING, ENERGY CONSUMER INFRASTRUCTURE SOURCES CHANNELS & LOGISTICS Access global markets through sale of unprocessed energy Processing & using extensive Refining hydrocarbons into p
Slide 8: Strong Liquidity & Financial Position
Strong Liquidity & Financial Position Liquidity1 Manageable debt maturity profile1 ~$9B Cash & cash equivalents (~$1.5B) & available credit facilities (~$7.1B) (C$ billion – as of September 30, 2020) as of September 30, 2020 2020 $0.0 ALow Investment grade credit rating 2021-2022 $1.7 BBB+ DBRS Rati
Slide 9: 2020 Capital Allocation
2020 Capital Allocation1,2 ECONOMIC ($millions) Q1 Q2 Q3 Rem 20201 Total2 INVESTMENT Q3 $259M___ ____________ Decline Mitigation 257 158 127 85 – 185 ~625 – 725 CAPITAL E&P 162 123 92 50 – 100 ~425 – 475 $1.3 - $1.5B Q2 $261M___ ____________ In-Situ Well Pads 95 35 35 35 – 85 ~200 – 250 High grading
Slide 10: $2B Free Funds Flow Growth Update
$2B Free Funds Flow Growth Update1,2 Structural, sustained free funds flow1 growth potential for years 2020 – 2025 inclusive3, through margin improvements, operating & sustaining capital cost reductions, & growth opportunities Projects Implemented by 2023 2024 – 2025 Deployment (~$1B Free Funds Flow
Slide 11: Technology & New Energy Investment
Technology & New Energy Investment 2019 investment breakdown >$2B in technology investment cumulative spend since 20151 $830M New technologies1 $830M spent on $2,165 (~70% capitalized2) technology development & deployment in 2019 $115M Low carbon power3 (Base Plant Cogeneration capital spend) $1,335
Slide 12: Our Sustainability Journey
Our Sustainability Journey A multi-decade history of environmental and social action 1 2 A track record of setting and exceeding sustainability targets 2009 Improve key environmental performance indicators by 2015 Energy efficiency, fresh water use, reclamation, air emissions – met or exceeded targe
Slide 13: Advancing Low Carbon Energy
Advancing Low Carbon Energy ~10% intensity reduction 2014 BASELINE achieved to date3 Investing in Today low-carbon Fort Hills power extraction technology Energy efficiency ~10% intensity 2030 TARGET Developing & deploying reduction sanctioned4 new technologies New cogeneration GHG ~2.5Mt/y GHG emiss
Slide 14: 2020 Capital & Production Guidance
2020 Capital & Production Guidance1 CAPITAL EXPENDITURES PRODUCTION & OPERATING COSTS Capital2 Economic Production4 Cash Operating Costs5 ($ millions) Investment3 (boepd) ($/bbl) Oil Sands 2,600 – 2,800 25% Oil Sands Operations 355,000 – 380,000 $28.00 – $31.00 E&P 450 – 500 95% Fort Hills (54.11% W
Slide 15: Advisories
Advisories Forward-Looking Statements – Forward-Looking Statements – This sources of debt and equity capital; the timing and the costs of well and Funds from operations (previously referred to as cash flow from presentation contains certain “forward-looking statements” within the pipeline constructi
Slide 16: Slide Notes
Slide Notes Slide 2------------------------------------------------------------- business environment, which are subject to change. Actual Slide 6 -------------------------------------------------------------- (1) Funds from operations (FFO) is a non-GAAP financial results may differ materially. Inc
Slide 17: Slide Notes
Slide Notes Slide 9 -------------------------------------------------------------- may differ materially. See Forward-Looking Statements in the by its indicated range while holding the rest constant. FFO is a (1) Balance of capital expenditures represents Asset Sustainment Advisories. non-GAAP finan
Slide 18: Investor Relations Contacts
Investor Relations Contacts Trevor Kate Muhammad Kinga Stacey Bell Charlton Usman Uto Hunter Vice President IR Director IR Senior Analyst IR Senior ESG Analyst IR Coordinator IR tgbell@suncor.com kcharlton@suncor.com muusman@suncor.com kuto@suncor.com sthunter@suncor.com Visit us at the Investor Cen