Suncor Energy Inc. · TSX:SU
Suncor Energy — Q2 2021 Earnings Presentation
19 slides from Suncor Energy's earnings presentation, Jul 29, 2021
Slide 1: Investor Information Q2 2021
SUNCOR ENERGY Investor Information Q2 2021 Published July 28, 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
Converting 500 Asset Value Maximization 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 & LOGISTICS CHANNELS Access global markets through sale of unprocessed energy Processing & using extensive Refining hydrocarbons into p
Slide 6: Capital Allocation in US$55 WTI Scenario
Capital Allocation in US$55 WTI Scenario1 2 2 5-year plan shows FFO3 growth & resilience1,2 ~25% dividend2 CAGR at $US35 WTI breakeven4 • Disciplined share buybacks Uses of free funds flow3 ($B) • Combined (dividends and buybacks), ~40% of FFO3 allocated to shareholder cash returns Targeted debt red
Slide 7: Financial Strength
Financial Strength Net debt to FFO1,2 Supermajor Peer4 Oil Sands Peer4 Suncor demonstrates financial responsibility among peers Net debt to FFO1,2 is 2.7x as of June 30, 2021. Target: ≤ 2x by 2025; ≤ 1.5x by 20303 Suncor PEER 1x RANGE 10x Peer Peer Oil Sands Max Min Peer Median Supermajor Peer Media
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 Rem 2021 2021 Total INVESTMENT CAPITAL3 Decline Mitigation 133 116 300 – 400 ~550 – 650 ~$1.15 - $1.35B E&P 62 57 230 – 280 ~350 – 400 In-Situ Well Pads 71 59 70 – 120 ~200 – 250 High grading capital spend on quick payout, $2.15B Free Funds 135
Slide 11: Our Sustainability Journey
Our Sustainability Journey 2020 investment breakdown $535M New technologies3 $195M Low carbon power5 $5M Renewable energy6 (~50% capitalized4) (Base Plant Cogeneration capital spend) (Forty Mile Wind Project capital spend) In situ optimization, Low joint Mining & Emissions carbon ventures, Digital t
Slide 12: Our Carbon Objective – net zero by 2050
Our Carbon Objective – net zero by 20501,2 10 Mt per year reduction by 20301,2 Reduce our own emissions through energy efficiency, fuel switching and CCUS Help reduce others’ emissions through low-carbon power, renewable fuels and hydrogen SUNCOR ENERGY 1, 2 See Slide Notes & Advisories 12
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 ~$8B 2021-20
Slide 15: 2021 Capital & Production Guidance
2021 Capital & Production Guidance1 CAPITAL EXPENDITURES PRODUCTION & OPERATING COSTS Capital2 Economic Production4 Cash Operating Costs5 ($ millions) Investment3 (boepd) ($/bbl) Oil Sands 2,550 – 2,950 25% Oil Sands Operations 410,000 – 445,000 $26.00 – $28.50 E&P 300 – 400 95% Fort Hills (54.11% W
Slide 16: Advisories
Advisories Forward-Looking Statements – Forward-Looking Statements – This savings; applicable laws and government policies; future production All non-GAAP measures presented herein do not have any standardized presentation contains certain “forward-looking statements” within the rates; the developme
Slide 17: Slide Notes
Slide Notes Slide 2------------------------------------------------------------- 19 Pandemic in the Advisories. BP plc., Chevron Corporation, ExxonMobil Corporation, (1) Funds from operations (FFO) is a non-GAAP financial (4) Reflects the aggregated product mix from Suncor's refineries Royal Dutch S
Slide 18: Slide Notes
Slide Notes Slide 9 ------------------------------------------------------------- carbon tax in Canada, all of which are subject to change. in the Advisories. (1) Free funds flow is calculated by taking funds from operations Excludes impact of Canada’s proposed Clean Fuel Standard. (3) All per share
Slide 19: Investor Relations Contacts
Investor Relations Contacts Trevor Muhammad Kinga Stacey Bell Usman Uto Hunter Vice President IR Director IR Senior ESG Analyst IR Coordinator IR tgbell@suncor.com muusman@suncor.com kuto@suncor.com sthunter@suncor.com Visit us at the Investor Centre on suncor.com 1-800-558-9071 invest@suncor.com SU