Suncor Energy Inc. · TSX:SU
Suncor Energy — Q1 2020 Earnings Presentation
20 slides from Suncor Energy's earnings presentation, May 6, 2020
Slide 1: Investor Information Q1 2020
SUNCOR ENERGY Investor Information Q1 2020 Published May 5, 2020 SUNCOR ENERGY
Slide 2: Living our purpose through COVID-19 response
Living our purpose through COVID-19 response Suncor’s Purpose To provide trusted energy that enhances people’s lives, while caring for each other and the earth What we are doing to promote the safety & well-being of our employees, customers & communities • As an integrated energy provider, we contin
Slide 3: Financial Health & Long Term Value Focus
Financial Health & Long Term Value Focus reduction in go-forward • Balance sheet strength & financial health is the foundation annualized cash of our strategy & capital allocation framework ~$4.5B commitments1 (from original 2020 guidance) • Capital, operating cost & dividend reduction support our s
Slide 4: 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 5: 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 kbpd2 Product Margin Processing Cost ~1/3 margin from 400 Royalty Cost Feeds
Slide 6: 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 7: Value Creation & Cost Management
Value Creation & Cost Management Leading FFO/boe2 & Total Operating Expenses Fort Hills & $1B target Value over volume Hebron come cost FFO2/boe Total Operating reductions5 Elevated 2019 costs due to Expenses ($B) online & ramp ($/boe) higher Y/Y FFO1 (+$800M) in up during year 12 $35 production vs.
Slide 8: 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) SUNCOR ENERGY 1, 2 See S
Slide 9: 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 10: Strong Liquidity & Financial Position
Strong Liquidity & Financial Position Liquidity1 Manageable debt maturity profile1 Cash & cash equivalents (~$2.23B) (C$ billion – as of March 31, 2020) ~$8B & available credit facilities (~$5.90B) as of March 31, 2020 ($1.25B medium-term note offering 2020 $0.0 + $300M credit facility entered into
Slide 11: 2020 Capital Allocation
2020 Capital Allocation1,2 High grading ($C millions) Q1 Rem 20201 Total2 capital spend on ECONOMIC Decline Mitigation 257 ~455 – 555 ~715 – 815 quick payout, top INVESTMENT E&P 162 ~400 – 450 ~565 – 615 CAPITAL1 quartile IRR projects $1.4 – 1.6B In-Situ Well Pads 95 ~55 – 105 ~150 – 200 to improve
Slide 12: $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 13: 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 Improve key environmental performance indicators by 2015 ✓ 2009 Energy efficiency, fresh water use, reclamation, air emissions – met or exceeded tar
Slide 14: Advancing Low Carbon Energy
Advancing Low Carbon Energy Today Fort Hills extraction 10% technology Removing heavier intensity carbons from process reduction (~2.6 Mt/y CO2e) enhances quality, achieved by yield & lifecycle GHG intensity2 YE 2018 Energy efficiency 2025 Investing in New low-carbon cogeneration power ~2.5Mt/y GHG
Slide 15: 2020 Capital & Production Guidance
2020 Capital & Production Guidance1 2020 Capital2 Economic Investment3 Production4 $ millions percent boepd Oil Sands 2,500 – 2,650 25% 410,000 – 435,000 Oil Sands operations E&P 550 – 650 95% 55,000 – 65,000 Fort Hills Downstream 450 – 550 20% 165,000 – 180,000 Syncrude Corporate 100 – 150 80% 100,
Slide 16: Notes
Notes SUNCOR ENERGY 15
Slide 17: Advisories
Advisories Forward-Looking Statements – Forward-Looking Statements – This Suncor’s properties; expected synergies and the ability to sustain included because management uses the information to analyze presentation contains certain “forward-looking statements” within the reductions in costs; the abil
Slide 18: Slide Notes
Slide Notes Slide 1------------------------------------------------------------- Slide 3------------------------------------------------------------- opportunities currently being evaluated and which may be (1) See Forward-Looking Statements and Impact of the COVID- (1) Funds from operations (FFO) i
Slide 19: Slide Notes
Slide Notes Slide 7 -------------------------------------------------------------- expenditures see the Capital Investment Update section of (1) As at December 31, 2019 and assumes that approximately the Q1 MD&A. Estimated impacts have been factored into (4) See Suncor’s 2019 Report on Sustainabilit
Slide 20: 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