Slide 1: Investor Information Supplemental
SUNCOR ENERGY Investor Information SUPPLEMENTAL Published August 4th, 2022 SUNCOR ENERGY
Slide 2: Table of Contents
Table of Contents 1. Energy Sources 2. Processing, Infrastructure & Logistics 3. Consumer Channels 4. Sustainability 5. Energy Expansion 6. Technology Development 7. Integrated Model Calculation 8. Glossary SUNCOR ENERGY 2
Slide 3: Energy Sources
SUNCOR ENERGY Appendix Energy Sources 3 202003-038
Slide 4: Oil Sands Energy Sources
Oil Sands Energy Sources *All values net to Suncor In Situ Mining Firebag Base Plant 215,000 bpd capacity 350,000 bpd capacity Suncor WI 100% Suncor WI 100% 2,686 mmbbls 2P reserves1 1,158 mmbbls 2P reserves1 Note: Millennium and North Steepbank Mines do not supply full 350,000 bpd of capacity as si
Slide 5: Long life, low decline reserves base
Long life, low decline reserves base Typical attributes1 of North American oil plays Initial Decline Sustaining Operating Reservoir Recovery Illustrative annual AFFO2 profiles3 capital rate costs cost risk factor Mining High Very low Low Medium Very low Very high ~90% of Suncor’s 2022 production gui
Slide 6: Offshore with ~280 million barrels of 2P reserves
Offshore with ~280 million barrels of 2P reserves1 East Coast Canada North Sea Hibernia Buzzard (UK) CNOOC Petroleum Europe Limited operated ExxonMobil operated Suncor working interest 29.9% Suncor working interest 20% 51 mmboe 2P reserves1 (Suncor WI) 71 mmboe 2P reserves1 (Suncor WI) 2021 avg net
Slide 7: E&P – Investing in high value, low risk projects
E&P – Investing in high value, low risk projects Recent performance mboe/d 120 Oda1 100 Hebron White Rose 80 Hibernia Terra Nova 60 Golden Eagle2 • High quality basins and geographic 40 Buzzard diversification 20 • Consistent free funds flow4,5 (FFF) 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 20
Slide 8: Power Generation
Power Generation1,2 • Integrating power generation with steam requirements from base business • Increase power revenue from sales to 11% grid 4% • Generate carbon credits to offset Wind 3 against base business costs Cogen 89% 96% SUNCOR ENERGY 1, 2, 3 See Slide Notes and Advisories. 8
Slide 9: Processing, Infrastructure & Logistics
SUNCOR ENERGY Appendix Processing, Infrastructure & Logistics 9 202003-038
Slide 10: Operations & Consumer Network
Operations & Consumer Network 28+ year Oil Sands Reserve Life Index1 ~25 mmbbl storage Western Canada ~1900 Petro Canada sites2 ~15 mmbbl storage Eastern Canada Only refinery in Colorado 3 ~10 mmbbl storage Central US & Gulf Coast Pipeline under construction4 Oil & Refined product storage (SU operat
Slide 11: Upgrading
Upgrading Upgrading processes heavy bitumen into a lighter, higher value product with a density Upgrading Process similar to that of WTI. LOW Once upgraded, the product can flow on a VALUE Mined & In Situ Bitumen HEAVY pipeline without the addition of diluent. OIL (10° API) Total Suncor Net Upgradin
Slide 12: Suncor's proven oil sands reliability journey
Suncor’s proven oil sands reliability journey Suncor Base Plant upgrader reliability Multi-year journey to reach >90% reliability 91% 90% 1 91% 90% 89% 90% Firebag to Base Mine 83% interconnect 81% pipeline fully 80% 79% operational Suncor began focusing on upgrader reliability initiatives in 2011 M
Slide 13: Market Access
Market Access Suncor has made strategic investments in refineries and current/proposed logistics infrastructure to mitigate Alberta egress limitations & market disconnects Fort McMurray ~750 Alberta egress bottleneck does not impact the ability to move Edmonton Suncor barrels1 146 Hardisty Enbridge
Slide 14: Consumer Channels
SUNCOR ENERGY Appendix Consumer Channels 14 202003-038
Slide 15: Refined Product Markets
Refined Product Markets ~530 mbpd Product sales in 20211 Edmonton refinery services region from BC 20% to Ontario Montreal and Sarnia have a Canadian local market consumer fuel Export reach over 22mm people5 market2 capability to US Pacific NW ~325 Wholesale Cardlock Locations3 Commerce City’s aspha
Slide 16: Refinery Feedstock & Products
Refinery Feedstock & Products1 2021 refinery feedstock 2021 refined products (~40% equity feedstock & ~100% inland crude) 1% 5% 8% 7% 7% 5% 6% 10% 10% 11% 8% 9% 6% 16% 29% 39% 52% 51% 33% 67% 40% 42% 72% 37% 24% 29% 19% 50% 4% 21% 45% 43% 43% 39% 37% 20% 22% 23% 10% Montreal Sarnia Edmonton Denver T
Slide 17: Refinery Characteristics
Refinery Characteristics 1 OS = Oil Sands GTA = Greater Toronto Area SUNCOR ENERGY 1 See Slide Notes & Advisories 17
Slide 18: Refining & Marketing
Refining & Marketing R&M adjusted funds from operations1,2 Refinery utilization vs. US average Capturing the value at all differentials Percent of refining capacity AFFO1,2 ($C billions) WTI – WCS ($US/bbl) Suncor US Average3 Full turnaround at the Edmonton $5 $30 100% refinery Q2 2018 Turnarounds a
Slide 19: Rack forward advantage – significant & stable
Rack forward advantage – significant & stable cash flow contribution 2021 rack forward 1 Excludes incremental benefit of increased refinery utilization Volume (million liters) 20,430 ($, million) (cpl) • Combined with strong refining and marketing Gross margin 1,454 7.10 profitability – captures 130
Slide 20: Suncor 5-2-2-1 Index
Suncor 5-2-2-1 Index To help investors and analysts model Suncor’s Refining and Marketing (R&M) business, we have designed an indicative 5-2-2-1 gross margin based on publicly available pricing data. This is a single value that incorporates refining, product supply and rack forward businesses, but e
Slide 21: R&M gross margin calculation example – Q1 2019
R&M gross margin calculation example – Q1 2019 FIFO1 impact calculation example – Q1 2019 Q4 2018 Q1 2019 Dec-18 49.00 70% 34.30 Dec-19 58.15 70% 40.71 WTI ($US/bbl) 60% 30.79 60% 34.32 Nov-18 56.70 30% 17.01 Nov-19 55.00 30% 16.50 Dec-18 6.00 70% 4.20 Dec-19 48.20 70% 33.74 WCS ($US/bbl) 20% 1.50 2
Slide 22: First-in, first-out (FIFO) inventory gains and losses
First-in, first-out (FIFO) inventory gains and losses Crude & products inventory & timing The amount of time between purchase of feedstock to sale of refined product has direct correlation to FIFO impact Edmonton Commerce City Montreal / Sarnia 45 Average (~ 1.5 months) Average number of days Crude
Slide 23: Sustainability
SUNCOR ENERGY Appendix Sustainability 23 202003-038
Slide 24: Water Stewardship
Water Stewardship Our water use is guided by three principles Reduce Reuse Return High water recycle rates in upstream operations1 Mining In-Situ Base Plant MacKay Syncrude Firebag & Fort Hills River 93% 85% 98% 100% Water technology highlights2 Water Technology Development Centre High Temperature R
Slide 25: Tailings Management
Tailings Management Tailings Types Base Plant is the only oil sands operations to reduce fluid tailings inventory since 2014.1 We are committed to using world-leading practices to manage and reduce fluid tailings and can treat more tailings than we produce at Base Plant <10% fluid through implementa
Slide 26: Personal & Process Safety
Personal & Process Safety1 Continued focus on personal safety above all else Loss of Primary Containment (LOPC) Recordable Injury Frequency (RIF) Tier 1 and Tier 2 process safety events Injuries per 200,000 hours worked 100 0.5 75 0.4 50 25 0.3 0 0.2 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021
Slide 27: Indigenous & Community Relationships
Indigenous & Community Relationships Working together, with mutual trust and respect, creating shared benefit Partner with businesses Strengthen workforce & inclusion Partner with youth East Tank Farm Deal $4.4B Spent with Indigenous businesses since 2017 4.4 $1B Partnership Canada’s largest Indigen
Slide 28: GHG Regulatory Cost Sensitivities
12 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 illustrative purposes for our Canadian assets (excluding Exploration & Production), on a working interest basis. Estimat
Slide 29: Energy Expansion
SUNCOR ENERGY Appendix Energy Expansion 29 202003-038
Slide 30: The energy expansion
The energy expansion1 Expanding along the existing integrated energy value chain Lowering costs, increasing revenue, and improving the carbon intensity of Suncor operations and consumer products SUNCOR ENERGY 1, 2, 3, 4, 5,16,See 7, 8,Slide 9, 10, 11, 12 See Slide Notes and Advisories 30 SUNCOR ENER
Slide 31: Energy Expansion Expenditure Outlook
Energy Expansion Expenditure Outlook1,2 Energy expansion focus: • Low cost structure • Reduce carbon emissions $600 • Synergistic with base business & $500 integrated value chain Energy expansion expenditures ($M) $400 Includes capital, equity investments and other outlays Energy expansion investmen
Slide 32: Controlling Costs, Reducing Emissions & Increasing Margins
Controlling Costs, Reducing Emissions & Increasing Margins1,2 Controlling regulatory compliance cost: Producing renewable fuels controls costs, retains margin and returns vs. purchasing increasingly large volumes of 3rd party fuels to meet compliance upon Clean Fuel Standards rollout Reducing emissi
Slide 33: Technology Development
SUNCOR ENERGY Appendix Technology Development 33 202003-038
Slide 34: New Technologies Realize Multiple Benefits
New Technologies Realize Multiple Benefits1 Examples of potential & current technologies to meet multiple objectives across our business Lower costs Lower GHGs Reduce water, tailings & land footprint SAGD2 enhancement processes (ES-SAGD3, ELITE4, NCG5) SAGD solvent dominated processes IN SITU Wellbo
Slide 35: Leading Deployment of Mining Technologies
Leading Deployment of Mining Technologies Fort Hills - Higher quality, fungible product Autonomous Haul Systems (AHS) Paraffinic Froth Treatment in secondary extraction ✓ Greater reliability, efficiency & productivity Bitumen froth mixed with solvents to remove water and minerals Designed to run 24/
Slide 36: New Cogeneration Facility Under Construction
New Cogeneration Facility Under Construction1 Heat required for mining operations Economically Robust HIGH % IRR independent of oil price & pipeline egress TEEN 2 Natural gas INPUTS Water $1.4B Capital investment over 4 years Increase revenue from power sales 0 Lower sustaining capital by replacing
Slide 37: Integrated Model Calculation
SUNCOR ENERGY Appendix Model Integrated Calculation 37 202003-038
Slide 38: 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%) BITUMEN 307 kbpd2 DISTILLATES (45%) ~15% AFFO1 ~10% AFFO1 ASPHALT (5%) OTHER (5%) 93 kbpd2 143 kbpd2 HIGH BASE PROCESSING, VALUE ENERGY INFRAS
Slide 39: Asset Value Maximization
500 Asset Value Maximization Converting hydrocarbons into $150.00 2020 / 2021 AVERAGES1 ($CAD) consumer products (Refer to pages 40 - 44 for full reconciliation) Product Value Transportation Cost 441 Product Margin3 Processing Cost kbpd2 400 Royalty Cost Feedstock Cost $120.00 ~1/3 margin from Upgra
Slide 40: Corporate Summary Calculation
Corporate Summary Calculation1 2020 / 2021 Average Adjusted Funds from Operations (AFFO)2 Breakdown ($CAD) SUNCOR ENERGY 1, 2, 3 See Slide Notes & Advisories 40
Slide 41: Integrated Model – Volumes Calculation
Integrated Model – Volumes Calculation1 SUNCOR ENERGY 1 See Slide Notes & Advisories 41
Slide 42: Integrated Model – Product Margin Calculation
Integrated Model – Product Margin Calculation1,2 SUNCOR ENERGY 1, 2, 3, 4, 5 See Slide Notes & Advisories 42
Slide 43: Integrated Model – Adjusted Funds from Operations Calculation
Integrated Model – Adjusted Funds from Operations Calculation1,2 SUNCOR ENERGY 1, 2, 3 See Slide Notes & Advisories 43
Slide 44: Netback reconciliations
Netback reconciliations(1)(2) ($mil, except per barrel amounts) SUNCOR ENERGY 1, 2, 3, 4, 5, 6, 7 See Slide Notes & Advisories 44
Slide 45: Rack Forward – Metrics Reconciliation
Rack Forward – Metrics Reconciliation ($mil except as noted) SUNCOR ENERGY 1, 2, 3, 4, 5, 6, 7, 8, 9 See Slide Notes & Advisories 45
Slide 46: Glossary
SUNCOR ENERGY Appendix Glossary 46 202003-038
Slide 47: Glossary
Glossary1 Alkylate (Alkylation): A refining operation that takes low value derivatives from the catalytic cracking and other processes and unites them in the presence of an acid catalyst to produce a very high octane, low vapor pressure gasoline blending component. Aromatics: Hydrocarbons characteri
Slide 48: Glossary (continued)
Glossary1 (continued) Crude Distillation: An oil refinery unit that separates crude oil into different products according to their individual boiling point ranges. Distillation allows for the materials to be separated without being subjected to conditions that would cause cracking or decomposition.
Slide 49: Glossary (continued)
Glossary1 (continued) Reforming: An oil refining unit in which naphthas are changed chemically to increase their octane level. Paraffins convert to iso-paraffins and naphthenes, and naphthenes change to aromatics. The catalyst used is usually platinum, though sometimes palladium. Sour Crude Oil: Cru
Slide 50: Advisories & Slide Notes
Advisories & Slide Notes Forward-Looking Statements – This presentation contains certain declared and share repurchases; the sufficiency of budgeted capital “forward-looking statements” within the meaning of the United States expenditures in carrying out planned activities; risks inherent in marketi
Slide 51: Advisories & Slide Notes
Advisories & Slide Notes Non-GAAP Measures (cont’d) In 2021, the company began disclosing Slide 6----------------------------------------------------------- 2023. See Forward-Looking Statements in the Advisories. refinery rack forward margin, operating expenses, other expenses, AFFO, and (1) Reserve
Slide 52: Advisories & Slide Notes
Advisories & Slide Notes Slide 18------------------------------------------------------------- tailings treated. (2) Based on company’s current business plans and the current business (1) Adjusted funds from operations (AFFO) is a non-GAAP financial (4) Statistic applies to Oil Sands Base. environme
Slide 53: Advisories & Slide Notes
Advisories & Slide Notes Slide 36---------------------------------------------------------------- non-GAAP financial measures. See Non-GAAP Measures in the Slide 45------------------------------------------------------------- (1) Based on company’s current business plans and the current business Adv
Slide 54: 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