Suncor Energy Inc. · TSX:SU
Suncor Energy — Investor Presentation (2013)
23 slides from Suncor Energy's investor presentation, Aug 10, 2013
Slide 1: Suncor Investor Information
Suncor Investor Information Q3 2013 Please see legal notice on pages 22 and 23
Slide 2: Canada's leading integrated energy company
Canada’s leading integrated energy company Focused on profitable growth and returning cash to shareholders The Suncor Advantage Over 34 years of production at current rates (4) • Oil sands leader • Integrated model maximizes the value of production – capturing 93% of world price(1) • Capital discipl
Slide 3: Profitable portfolio of oil producing assets
Profitable portfolio of oil producing assets Growing oil sands business with complementary upstream & downstream operations Circles are scaled to relative capacities. 3
Slide 4: Oil sands leader
Oil sands leader Monetized through a balanced portfolio of mining, in situ and upgrading(1) Millennium & North MacKay River In Situ Steepbank Extension Mine 30 kb/d of bitumen capacity 310-330 kb/d of bitumen capacity 100% working interest (depending on ore grade) 100% working interest Syncrude Mine
Slide 5: Suncor's capital allocation priorities
Suncor’s capital allocation priorities Disciplined approach to maximize shareholder returns Return cash to shareholders • Competitive, sustainable and growing dividend • Value-driven share repurchases Invest in Optimize base profitable growth business • Premium quality • Focus on operational excelle
Slide 6: A rich suite of profitable growth projects
A rich suite of profitable growth projects Including plans for 100 kb/d of debottlenecks and expansions at an estimated 400 cost of $20K - $30K per flowing barrel and a significant amount of higher-value light oil growth 350 Planned Growth(1) (kb/d increase versus 2012 actuals) Joslyn(3) 300 Mined P
Slide 7: Access to global market pricing
Access to global market pricing Able to optimize the value of our crude oil production 74% 64% 26% 89% 7% 3% 25% 7% 1% 93% (1) Based on Suncor’s crude oil and liquids production volumes for the 12 months ended June 30, 2013. 7 (2) Includes 5,600 bbls/d of natural gas liquids and crude oil production
Slide 8: Market access strategy for inland oil production
Market access strategy for inland oil production Suncor has over 600 kb/d of near-term access to globally priced markets(1) Inland crude oil accessing world pricing(2) Hub - 2013 140 - 2014 kb/d 30 Refinery - 2013 - 2014 130 20 kb/d 30 6-12 months(2) 30 kb/d rail to Montreal 85 50-75 kb/d pipeline t
Slide 9: Operational Excellence Management System
Operational Excellence Management System Our strategy is to implement operational excellence in every aspect of our business OEMS example OEMS example Upgrader 1 turnaround Marine Transportation Significant reliability project executed with Management System world-class safety performance Comprehens
Slide 10: Technology is fundamental to how we do business
Technology is fundamental to how we do business $175 mm budgeted in 2013 on R&D spending, targeting higher production, enhanced profitability and lower environmental impacts Solvent extraction Membrane de-oiling and water treatment Non-condensable gas co-injection Autonomous haul trucks Steam-qualit
Slide 11: Leading technology development
Leading technology development Our strategy is to advance technology through collaboration and innovation Current technology example Emerging technology example SAGD(1) SAGD LITE: Enhancing SAGD(4) The largest SAGD producer in the industry(2) Using surfactants and additives to increase production an
Slide 12: Working collaboratively on sustainability
Working collaboratively on sustainability Broad recognition for sustainability achievements and CSR reporting Industry Leadership • Co-founded OSLI (2009), OSTC (2010) and COSIA (2012) • Co-founded OSDG (2000) and CEMA (2003) Performance Awards & Recognition • Winner of the President’s Award in the
Slide 13: Oil Sands operations set to unlock production
Oil Sands operations set to unlock production A focus on operational excellence is driving continuous improvement across our business through a structured and disciplined approach to everything we do • Improved Reliability Extracted Bitumen Upgraded Production o Major turnaround on Upgrader 1 (kbpd)
Slide 14: Step change in oil sands production capacity
Step change in oil sands production capacity Logistics debottleneck projects have unlocked significant volumes New Logistics Assets Firebag – optionality • Firebag hot bitumen pipeline Production can either be shipped to base plant for upgrading or to • Hot bitumen terminal blending terminal for exp
Slide 15: Production overview
Production overview Expecting over 10% oil growth in 2013 2013 2012 Production Outlook Actual Production Oil Sands (bpd) 350,000 — 380,000 325,000 Syncrude (bpd) 34,000 — 38,000 34,000 North America Onshore (boe/d) 41,000 — 46,000(1) 54,000 East Coast Canada (bpd) 55,000 — 60,000 46,000 Internationa
Slide 16: In Situ operations leading Suncor's growth
In Situ operations leading Suncor’s growth Exceptional portfolio of projects and properties Demonstrated track record of growth • Reliable and growing production 175 Firebag 35% CAGR(1) • Firebag Stage 4 delivered 15% under budget MacKay River since 2002 Production (kb/d) 150 • Infill wells at Fireb
Slide 17: Exploration & Production—high quality asset base
Exploration & Production—high quality asset base Diversified cash flow and exposure to global pricing Operating earnings (1) Cash flow from operations (1) North America Onshore contribution to North America Onshore(2) contribution to cash operating earnings in Q1 and Q2 2013 flow from operations in
Slide 18: Refining & Marketing—optimizing the oil sands barrel
Refining & Marketing—optimizing the oil sands barrel Overall #1 among peers for the past three years(1) Edmonton Refinery (140 kb/d) - 100% oil sands integration -35 kb/d heavy feedstock R&M Net Earnings (2) Sarnia Refinery (85 kb/d) - approximately 75% synthetic crude oil Montreal Refinery (137 kb/
Slide 19: 2013 Capital expenditure outlook
2013 Capital expenditure outlook 45% growth focused Expect to fund capital spending from cash flow 2013 Outlook Sustaining Capital Growth Capital $ millions $ millions $ millions Oil Sands 4,165 2,860 1,305 Oil Sands 3,005 2,470 535 Oil Sands Ventures 1,160 390 770 E&P 1,620 215 1,405 Refining & Mar
Slide 20: Financial strength
Financial strength Maintaining a strong balance sheet and spending within our means 12 months ended • Enables Suncor to grow profitably and June 30, 2013 Target accelerate return of cash to shareholders • 2013 planned capital spending of $7 billion Return on capital employed(1) expected to be funded
Slide 21: Returning cash to shareholders
Returning cash to shareholders Dividends will be reliable, sustainable, meaningful and competitive Share repurchases will be value-driven Cash Dividends(2,3) Significant dividend growth Share Repurchases(2) • 54% increase in Q2 2013 Remaining value of Suncor’s • Over 30% dividend CAGR past five year
Slide 22: Legal notice
Legal notice Forward-Looking Statements - This investor presentation contains certain “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward-looking information” within the meaning of applicable Canadian securities legislati
Slide 23: Legal notice (continued)
Legal notice (continued) Operating earnings and cash flow from operations for Suncor’s Exploration and Production segment for 2010 to 2012 are defined and reconciled in Suncor’s MD&A dated February 26, 2013, and in the case of operating earnings and cash flow from operations for 2009, Suncor’s annua