Slide 1: Investor Information Q3 2021
SUNCOR ENERGY Investor Information Q3 2021 Published October 27, 2021 SUNCOR ENERGY
Slide 2: Integrated Model
Integrated Model 2019 / 2020 AVERAGES OF PRODUCTS SOLD TO MARKET REFINED PRODUCTS ~50% FFO1 456 kbpd2 SYNTHETIC CRUDE OIL OFFSHORE ~25% FFO1 GASOLINE (45%) BITUMEN 315 kbpd2 DISTILLATES (45%) ~15% FFO1 ~10% FFO1 ASPHALT (5%) OTHER (5%) 104 kbpd2 138 kbpd2 HIGH BASE PROCESSING, VALUE ENERGY INFRASTRU
Slide 3: Asset Value Maximization
500 Asset Value Maximization Converting hydrocarbons into $150.00 2019 / 2020 AVERAGES1 ($CAD) consumer products (Refer to pages 40 - 42 in Supplemental IR Deck for full reconciliation) Product Value 456 Transportation Cost kbpd2 Product Margin Processing Cost 400 Royalty Cost Feedstock Cost $120.00
Slide 4: Operations & Consumer Network
Operations & Consumer Network 29 year Oil Sands Reserve Life Index1 ~25 mmbbl storage Western Canada ~1875 Petro Canada sites2 ~15 mmbbl storage Eastern Canada Only refinery in Colorado ~10 mmbbl storage Central US & Gulf Coast 3 Oil & Refined product storage (SU operated) SUNCOR ENERGY 1, 2, 3 See
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: Acceleration of Capital Allocation
Acceleration of Capital Allocation1 All elements of 5-year plan continue to be accelerated Shareholder returns 100% dividend increase in 2021 $12 (vs. target of 5-year ~25% dividend2 CAGR) May 2021 strip5 Up to 7% buyback – largest in the $10 company’s history (vs. 5 year target of 12%) Uses of free
Slide 7: 2021 – Delivering Fortified Balance Sheet & Leading Cash Returns
2021 – Delivering Fortified Balance Sheet & Leading Cash Returns ~9% Cash yield YTD Q3 2021 annualized – dividends & share buybacks >70% of Funds from Ops1 (includes tax refund) Share buybacks ~4% Shares repurchased YTD Q3 2021 – highest rate of buybacks in Suncor history Fortified balance sheet ~$3
Slide 8: Breakeven Sensitivities & Cost Management
Breakeven Sensitivities & Cost Management1,2,3 2021E FFO4 breakeven on $USD WTI pricing5 Assumes USD WTI/bbl ~$30/bbl WTI ~$35/bbl WTI covers total enterprise covers total enterprise operating costs operating costs + sustaining capital6 + sustaining capital6 + dividend Sustainably lowering operating
Slide 9: $2.15B Free Funds Flow Growth Update
$2.15B Free Funds Flow Growth Update1,2 Structural and sustained free funds flow1 for years 2021 – 2025 inclusive3, through margin improvements, operating & sustaining capital cost reductions, & growth opportunities Projects Implemented by 2023 2024 – 2025 Deployment Value Drivers Coke Fired Boiler
Slide 10: 2021 Capital Allocation
2021 Capital Allocation1,2 ECONOMIC ($ millions) Q1 Q2 Q3 Rem 2021 2021 Total INVESTMENT Decline Mitigation 133 116 135 166 – 266 ~550 – 650 CAPITAL3 E&P 62 57 57 174 – 224 ~350 – 400 ~$1.15 - $1.35B In-Situ Well Pads 71 59 78 0 – 42 ~200 – 250 High grading capital $2.15B Free Funds spend on quick p
Slide 11: 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 environment and social cha
Slide 12: 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 pear year reduction by 20301,2 up to ~40% up to ~20% up to ~20% up to ~50% Reduce our own emissions up to ~60% through energy efficiency, fuel switching and CCUS Help reduce others’ em
Slide 13: GHG Regulatory Cost Sensitivities
GHG Regulatory Cost Sensitivities1 To help investors and analysts model the potential impact of current and future carbon pricing, Suncor has put forward a simplified model for our Canadian assets (excluding Exploration & Production), on a working interest basis. Estimated Variable 2020 ‘baseline’ s
Slide 14: Growth & resilience through the cycle
Growth & resilience through the cycle1 2015 – 2019 Average 2021 – 2025 Average Growth Phase Optimization Phase Increased cash ~25% shareholder returns Higher shareholder returns2,3 $2.20/sh ~$2.80/sh ~15% Lower share count Cash return includes dividends and share repurchases Debt repaid ~$8B 2021-20
Slide 15: 2021 Capital & Production Guidance
2021 Capital & Production Guidance1 CAPITAL EXPENDITURES Capital2 Economic ($ millions) Investment3 Oil Sands 2,550 – 2,950 25% E&P 300 – 400 95% PRODUCTION & OPERATING COSTS Downstream 750 – 850 10% Production4 Cash Operating Costs5 Corporate 200 – 300 60% (boepd) ($/bbl) Total 3,800 – 4,500 30% Oi
Slide 16: Advisories
Advisories Forward-Looking Statements – Forward-Looking Statements – This equipment; capital efficiencies and cost-savings; applicable laws and costs and Syncrude cash operating costs – are not prescribed by GAAP. presentation contains certain “forward-looking statements” within the government polic
Slide 17: Slide Notes
Slide Notes Slide 2------------------------------------------------------------- See Forward-Looking Statements and Impact of the COVID- Slide 8 -------------------------------------------------------------- (1) Funds from operations (FFO) is a non-GAAP financial 19 Pandemic in the Advisories. (1) B
Slide 18: Slide Notes
Slide Notes Slide 9 ------------------------------------------------------------- Excludes impact of Canada’s proposed Clean Fuel Standard. share count after share buybacks or anticipated share buybacks. (1) Free funds flow is calculated by taking funds from operations Numbers may not add up exactly
Slide 19: 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