Suncor Energy Inc. · TSX:SU
Suncor Energy — Merger or Acquisition (April 2023)
9 slides from Suncor Energy's merger presentation, Apr 26, 2023
Slide 1: Acquisition of Total Canada
Due to changes to the Competition Act, pending regulatory guidance, this document is provided for historical En raison des changements apportés à la Loi sur la concurrence, en attendant l'orientation réglementaire, ce document information purposes only and does not constitute an active or current re
Slide 2: Transaction highlights
Transaction highlights • Suncor Energy is acquiring all the shares of TotalEnergies EP Canada Ltd. (“Total Canada”), including: • 50.0% interest in the Surmont project; Transaction • 31.23% interest in the Fort Hills project; overview • Associated logistics commitments; and • $10.5B of tax pools • U
Slide 3: Strategic rationale
Strategic rationale1 Increases options for Base Mine replacement and maintenance of current production • Adds ~120 kbpd of production in 2024E without greenfield development and cost risk • Results in sufficient bitumen supply from Firebag, MacKay River, and Fort Hills to keep Base Plant Upgrader fu
Slide 4: Advances and de-risks bitumen supply strategy
Advances and de-risks bitumen supply strategy1 Bitumen supply opportunities • Further step in proactively addressing long-term bitumen supply strategy • With two acquisitions at Fort Hills totaling Surmont (50%) Other 46%2 plus 50% of Surmont, 163 kbpd of opportunities bitumen production capacity ac
Slide 5: Financial impact
Financial impact1,2,3,4 Financial impact – 2024E ($B) Strip WTI US$80/bbl WTI 2.0 • Dividend to be increased by approximately 10% to $2.28/share on an annualized basis, post 1.5 close, assuming transaction completed as contemplated • Increase in dividend underpinned by 2024E 1.0 AFFO per share accre
Slide 6: Capital allocation and future deleveraging
Capital allocation and future deleveraging1,2,3 Resulting deleveraging Strip WTI US$80/bbl WTI • Debt reduction will continue with focus on 25 2.0x maintaining investment grade credit ratings 20 • Targeting ~$9B in net debt reduction in 1.5x 18 – 24 months at strip pricing 15 • Post closing, Suncor
Slide 7: Asset overview
Asset overview Surmont Fort Hills Purchase Price ($B) C$5.5B cash + up to C$600M in conditional payment Ownership Interest (%) 50.00% 31.23% 1P: 1.07 1P: 0.46 Reserves, net WI (Bbbl)1 2P: 1.38 2P: 0.68 2P Reserve Life (years)1 ~50 ~40 2024E: 70 2024E: 50 Production, net WI (kbpd) 2025E: 75 2025E: 53
Slide 8: Advisories & Slide Notes
Advisories & Slide Notes Forward-Looking Statements – This presentation contains certain “forward- products to market; mandatory production curtailments being greater or Reserves - Reserves information presented herein is presented as looking statements” within the meaning of the United States Priva
Slide 9: Advisories & Slide Notes
Advisories & Slide Notes Slide Notes 4. 2024 estimated AFFO and FFF are based on the following pricing assumptions: regulatory approval. Actual results may differ materially. There can be no Strip pricing case (as of April 10, 2023): WTI of US$78.07/bbl in 2023, assurance these opportunities will be