Suncor Energy Inc. · TSX:SU
Suncor Energy — Q4 2020 Earnings Presentation
19 slides from Suncor Energy's earnings presentation, Feb 3, 2021
Slide 1: Investor Information Q4 2020
SUNCOR ENERGY Investor Information Q4 2020 Published February 3rd, 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 35 - 38 in Supplemental IR Deck for full reconciliation) Product Value Transportation Cost 456 Product Margin Processing Cost kbpd2 400 Royalty Cost $120.00 Feedstock Cost
Slide 4: Capital Allocation Framework
Capital Allocation Framework1 SUSTAINING CAPITAL2 1st Priority $2.75 - $3.75B Maintain core business & dividend DIVIDEND $1.3B3 100% % Discretionary Funds Flow4 80% 2nd Priority 60% Debt repayment, increased shareholder returns (buybacks & dividend increases3) 40% & economic capital5 → allocation de
Slide 5: Breakeven Sensitivities & Cost Management
Breakeven Sensitivities & Cost Management 2021E FFO Breakeven on $USD WTI Pricing1 Assumes USD WTI/bbl & $13.50/bbl NYH 2-1-1 refining crack <$25/bbl WTI ~$30/bbl WTI ~$35/bbl WTI covers total enterprise covers total enterprise covers total enterprise operating costs operating costs operating costs
Slide 6: Operations & Consumer Network
Operations & Consumer Network 29 year Oil Sands Reserve Life Index1 ~25 mmbbl storage Western Canada ~1,880 PetroCanada sites2 ~15 mmbbl storage Eastern Canada Only refinery in Colorado ~10 mmbbl storage Central US & Gulf Coast OIL & REFINED PRODUCT STORAGE (SUNCOR OPERATED) CURRENT PIPELINES PROPOS
Slide 7: The Suncor Advantage
The Suncor Advantage1 L E A D I N G S U S T A I N A B I L I T Y T R A C K R E C O R D A C R O S S B U S I N E S S ENERGY PROCESSING, SOURCES INFRASTRUCTURE CONSUMER & LOGISTICS CHANNELS Access global markets through sale of unprocessed energy Processing & using extensive Refining hydrocarbons into p
Slide 8: Financial Strength & Leverage Targets
Financial Strength & Leverage Targets Net debt to FFO1 Supermajor Peer3 Oil Sands Peer3 Suncor demonstrates financial responsibility among peers Target ≤ 3x net debt to FFO2; net det to FFO is 5.1x as of December 31, 2020 Suncor PEER RANGE 1x 10x Peer Supermajor Oil Sands Min Peer Median Peer Median
Slide 9: 2021 Capital Allocation
2021 Capital Allocation1,2 ECONOMIC ($millions) 2021 Total INVESTMENT CAPITAL3 Decline Mitigation ~550 – 650 ~$1.15 - $1.35B E&P ~350 – 400 In-Situ Well Pads ~200 – 250 High grading capital spend on quick payout, $2B Free Funds Flow Growth3,4 ~500 – 550 top quartile IRR projects Other Economic Inves
Slide 10: $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 11: Technology & New Energy Investment
Technology & New Energy Investment 2019 investment breakdown >$2B in technology investment cumulative spend since 20151 $830M New technologies1 $830M spent on $2,165 (~70% capitalized2) technology development & deployment in 2019 $115M Low carbon power3 (Base Plant Cogeneration capital spend) $1,335
Slide 12: Our Sustainability Journey
Our Sustainability Journey A multi-decade history of environmental and social action 1 2 A track record of setting and exceeding sustainability targets 2009 Improve key environmental performance indicators by 2015 Energy efficiency, fresh water use, reclamation, air emissions – met or exceeded targe
Slide 13: Advancing Low Carbon Energy
Advancing Low Carbon Energy ~10% intensity reduction 2014 BASELINE achieved to date3 Investing in Today low-carbon Fort Hills power extraction technology Energy efficiency ~10% intensity 2030 TARGET Developing & deploying reduction under construction4 new technologies New cogeneration GHG ~2.5Mt/y G
Slide 14: GHG Regulatory Cost Sensitivities
GHG Regulatory Cost Sensitivities1 To help investors and analysts model the potential impact of current and future carbon pricing, Suncor has put forward a simplified model for our Canadian assets (excluding Exploration & Production), on a working interest basis. Estimated Variable 2020 ‘baseline’ s
Slide 15: 2021 Capital & Production Guidance
2021 Capital & Production Guidance1 CAPITAL EXPENDITURES PRODUCTION & OPERATING COSTS Capital2 Economic Production4 Cash Operating Costs5 ($ millions) Investment3 (boepd) ($/bbl) Oil Sands 2,550 – 2,950 25% Oil Sands Operations 410,000 – 445,000 $26.00 – $28.50 E&P 350 – 450 95% Fort Hills (54.11% W
Slide 16: Advisories
Advisories Forward-Looking Statements – Forward-Looking Statements – This reserves estimates and estimates of recoverable quantities of oil, natural presentation contains certain “forward-looking statements” within the gas and liquids from Suncor’s properties; expected synergies and the Funds from o
Slide 17: Slide Notes
Slide Notes Slide 2------------------------------------------------------------- asset sustainment and maintenance capital, inclusive of mboe/d, Suncor’s average daily production rate in 2019. (1) Funds from operations (FFO) is a non-GAAP financial associated capitalized interest, and dividends. Res
Slide 18: Slide Notes
Slide Notes Slide 9 -------------------------------------------------------------- our GHG intensity due to government mandated production company’s current business plans and the current business (1) Full guidance is available at suncor.com/guidance. See Forward- curtailment and the COVID-19 pandem
Slide 19: 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