Suncor Energy Inc. · TSX:SU
Suncor Energy — Q1 2023 Earnings Presentation
22 slides from Suncor Energy's earnings presentation, May 9, 2023
Slide 1: Investor Information Q1 2023
SUNCOR ENERGY Investor Information Q1 2023 Published May 8, 2023 SUNCOR ENERGY
Slide 2: Suncor's value proposition
Suncor’s value proposition1 Physical integration Operational excellence Growing shareholder returns Regional Oil Sands scale & Safety above all else Industry leading cash returns connectivity driving value (2012-22) Industry best integrated 2 dividend increases in 2022 Downstream Maintain high relia
Slide 3: Strong balance sheet & industry leading cash returns
Strong balance sheet & industry leading cash returns 1 Industry leading integrated model cash generation Strong track record of cash returns (C$ billion) $20 ~60 % of 10yr cumulative AFFO (less sustaining capex) returned to shareholders $15 Top ~$8/share Tier TTM2 AFFO Cash yield 5 AFFO $10 (less su
Slide 4: Disciplined capital allocation
Disciplined capital allocation1 O R D E R O F P R I O R I T Y Annual AFFO Allocation Net Debt (incl. ~$3B cap leases) Sustaining Economic Share Buyback / Net Debt Reduction Dividend3 ($ billion) Capital2 Capital4 (annualized %) 12 – 15 50 / 50 ~$2.2 ~$3.4 $2.08/ share 9 – 12 billion 75 / 25 billion
Slide 5: Physical integration to maximize value of every barrel
Physical integration to maximize value of every barrel Deep regional Oil Sands integration ~26 year Oil Sands Reserve Life Index ~25 mmbbl storage ~0.91 ~1.21 Western Canada Mbpd Mbpd Brent (E&P) Brent (E&P) ~15 mmbbl storage Eastern Canada National wholesale Gasoline & retail network & Diesel Value
Slide 6: No exploration risk and ~6.6 Bboe of 2P reserves
No exploration risk and ~6.6 Bboe of 2P reserves Production Mix1 Decline Reservoir Recovery (2023E) rate risk factor E&P ~15% decline Mining Very low Very low Very high Oil Sands Operations Syncrude ~0% mining decline In Situ Low Low High ~0% decline & ~12% In Situ decline Fort Hills Offshore Medium
Slide 7: Integrated footprint of Oil Sands assets
Integrated footprint of Oil Sands assets Strategy – maximize margins & keep upgraders full (90% utilization) • Optionality from multiple oil sands assets (mining & SAGD) • All sites are connected by pipeline: • Firebag & MacKay River – Base Plant • Syncrude – Base Plant • Fort Hills – Base Plant Clo
Slide 8: Upstream oil sands operations
Upstream oil sands operations Suncor has a long history of improving operational reliability, now focused on mining Upgrading and Mining Assets In Situ Assets (2018 - 2022) (2013 - 2022) • Base Plant upgrader utilization steadily increased to • Combined average of >90% utilization over the past 10 ~
Slide 9: Downstream advantage – industry best utilization & profitability
Downstream advantage – industry best utilization & profitability Refinery utilization vs. industry Industry leading profitability during pandemic2 Percent of refining capacity 2020 R&M (excluding rack forward) EBITDA per barrel Suncor US Average 1 Cdn Average 1 100 Full turnaround at the Edmonton $1
Slide 10: Our GHG emissions objective – net zero by 2050
Our GHG emissions objective – net zero by 20501,2 10 GHG reduction approaches to 2030 Mt per year reduction by 20301,2 • Reduce our own emissions through energy up to 10upMt up to Fuel switching Low-carbon to ~20% and alternate efficiency, fuel switching and CCUS power ~50% reduction ~20% products t
Slide 11: Sustainability leadership
Sustainability leadership 1995 2000 2005 2010 2015 2016 2017 2018 2019 2020 2021 2022 First First Set four Set long- First climate risk report Completed Canada’s Invested in CCUS environment renewable long-term term carbon first coast-to-coast EV technology with report energy environmental and socia
Slide 12: 2023 capital budget
2023 capital budget1, 2 ECONOMIC INVESTMENT $millions Q1 Rem 2023 2023 Total CAPITAL3 Decline mitigation 270 ~830 – 930 ~1,100 – 1,200 Investing in projects to improve efficiency, E&P 174 ~550 – 600 ~725 – 775 flexibility & resilience In Situ well pads 96 ~280 – 330 ~375 – 425 Cogeneration 88 ~230 –
Slide 13: 2023 capital & production guidance
2023 capital & production guidance1, 2 CAPITAL EXPENDITURES PRODUCTION & OPERATING COSTS Capital3 Economic Production 5 Cash Operating Costs ($ millions) Investment 4 (boepd) ($/bbl) Oil Sands 3,625 – 3,875 30% Oil Sands Operations 385,000 – 425,000 $30.00 – $33.00 E&P 725 – 775 100% Fort Hills (68.
Slide 14: Appendix
SUNCOR ENERGY Appendix 14 202003-038
Slide 15: 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% 2,624 mmbbls 2P reserves1 954 mmbbls 2P reserves 1 Note: Millennium and North Steepbank Mines do not supply full 350,000 bpd of capacity as sig
Slide 16: Offshore with ~310 million barrels of 2P reserves
Offshore with ~310 million barrels of 2P reserves1 East Coast Canada Hibernia Terra Nova2 ExxonMobil operated Suncor Energy operated Suncor working interest 20% Suncor working interest 48% 61 mmboe 2P reserves 1 (Suncor WI) 32 mmboe 2P reserves 1 (Suncor WI) 2022 avg net production: 15.1 mbbls/d Whi
Slide 17: Refining advantage
Refining advantage ~40% equity feedstock & ~100% inland crude Feedstock advantages2 Product advantages2 Edmonton Directly connected to Oil Sands Large market reach with international export 1 production; ability to process multiple capability via tidewater; in-line product blending 146 kbpd crude ty
Slide 18: Refined product markets
Refined product markets ~555 mbpd Product sales in 20221 ~20% Edmonton refinery services Canadian region from BC to consumer fuel Ontario Montreal and market2 Sarnia have a local market reach over 22mm people5 ~325 Export capability to US Wholesale Cardlock Pacific NW Locations3 ~1,590 Commerce City
Slide 19: Advisories
Advisories Forward-Looking Statements – Forward-Looking Statements – This market; the timely receipt of regulatory and other approvals; the uses the information to analyze business performance, leverage and presentation contains certain “forward-looking statements” within timing of sanction decision
Slide 20: Slide Notes
Slide Notes Slide 2------------------------------------------------------------- Slide 9 -------------------------------------------------------------- (3) For a description of asset sustainment and maintenance capital (1) Based on company’s current business plans and the current (1) Source: US Ener
Slide 21: Slide Notes
Slide Notes Slide 16 -------------------------------------------------------------- (1) Reserves are working interest before royalties. See Reserves in the Advisories. The estimates of reserves for individual properties provided herein may not reflect the same confidence level as estimates of reserv
Slide 22: Investor relations contacts
Investor relations contacts Troy David Christian Matilda Stacey Little Johnson Leung Lo Hunter Vice President IR Director IR Manager IR Manager IR Coordinator IR trlittle@suncor.com davjohnson@suncor.com chrileung@suncor.com mkragulj@suncor.com sthunter@suncor.com Visit us at the Investor Centre on