Slide 1: Investor Information Q1 2021
SUNCOR ENERGY Investor Information Q1 2021 Published May 3, 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%) ~15% FFO1 BITUMEN 315 kbpd2 DISTILLATES (45%) ~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 34 - 37 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 capital 5 → allocation d
Slide 5: Breakeven Sensitivities & Cost Management
Breakeven Sensitivities & Cost Management 2021E FFO breakeven on $USD WTI pricing 1 Assumes USD WTI/bbl <$25/bbl WTI ~$30/bbl WTI ~$35/bbl WTI covers total enterprise covers total enterprise covers total enterprise operating costs operating costs operating costs + sustaining capital2 + sustaining ca
Slide 6: Operations & Consumer Network
Operations & Consumer Network 29 year Oil Sands Reserve Life Index1 ~25 mmbbl storage Western Canada ~1,875 PetroCanada sites2 ~15 mmbbl storage Eastern Canada Only refinery in Colorado ~10 mmbbl storage Central US & Gulf Coast OIL & REFINED PRODUCT STORAGE (SUNCOR OPERATED) CURRENT PIPELINES PROPOS
Slide 7: The Suncor Advantage
The Suncor Advantage1 L E A D I N G S U S T A I N A B I L I T Y T R A C K R E C O R D A C R O S S B U S I N E S S ENERGY PROCESSING, SOURCES INFRASTRUCTURE CONSUMER & LOGISTICS CHANNELS Access global markets through sale of unprocessed energy Processing & using extensive Refining hydrocarbons into p
Slide 8: Financial Strength & Leverage Targets
Financial Strength & Leverage Targets Net debt to FFO1 Supermajor Peer3 Oil Sands Peer3 Suncor demonstrates financial responsibility among peers Target ≤ 3x net debt to FFO2; net debt to FFO is 3.8x as of March 31, 2021 Suncor PEER 1x RANGE 13x Peer Peer Min Oil Sands Max Peer Median Supermajor TTM
Slide 9: 2021 Capital Allocation
2021 Capital Allocation1,2 ECONOMIC ($ millions) Q1 Rem 2021 2021 Total INVESTMENT CAPITAL3 Decline Mitigation 133 420 – 520 ~550 – 650 ~$1.15 - $1.35B E&P 62 290 – 340 ~350 – 400 In-Situ Well Pads 71 130 – 180 ~200 – 250 High grading capital spend on quick payout, $2B Free Funds Flow 135 365 – 415
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 2020 investment breakdown $2.7B in technology investment cumulative spend since 20151 $535M New technologies1 $535M spent on technology (~50% capitalized2) development & deployment in 2020 $2,700 $195M Low carbon power3 $2,165 (Base Plant Cogeneration capital spend
Slide 12: Our Sustainability Journey
Our Sustainability Journey A multi-decade history of environmental and social action 1 2 A track record of setting and exceeding sustainability targets 2009 Improve key environmental performance indicators by 2015 Energy efficiency, fresh water use, reclamation, air emissions – met or exceeded targe
Slide 13: Advancing Low Carbon Energy
Advancing Low Carbon Energy Projects 2014 BASELINE implemented2 Investing in low-carbon Fort Hills power extraction technology Energy efficiency 2030 TARGET Developing & deploying Projects under construction3 new technologies New GHG Cogeneration GOAL Running operations on Forty Mile Wind Reduce nat
Slide 14: GHG Regulatory Cost Sensitivities
GHG Regulatory Cost Sensitivities1 To help investors and analysts model the potential impact of current and future carbon pricing, Suncor has put forward a simplified model for our Canadian assets (excluding Exploration & Production), on a working interest basis. Estimated Variable 2020 ‘baseline’ s
Slide 15: 2021 Capital & Production Guidance
2021 Capital & Production Guidance1 CAPITAL EXPENDITURES PRODUCTION & OPERATING COSTS Capital2 Economic Production4 Cash Operating Costs5 ($ 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 estimates of recoverable quantities of oil, natural gas and liquids from presentation contains certain “forward-looking statements” within the Suncor’s properties; expected synergies and the ability to sustain Funds from opera
Slide 17: Slide Notes
Slide Notes Slide 2------------------------------------------------------------- asset sustainment and maintenance capital, inclusive of mboe/d, Suncor’s average daily production rate in 2020. (1) Funds from operations (FFO) is a non-GAAP financial associated capitalized interest, and dividends. Res
Slide 18: Slide Notes
Slide Notes Slide 9 -------------------------------------------------------------- curtailment and the COVID-19 pandemic’s impact on demand. intensity of 0.37 tonnes/MWh. These assumptions are based on (1) Full guidance is available at suncor.com/guidance. See Forward- See Forward-Looking Statements
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