Suncor Energy Inc. · TSX:SU
Suncor Energy — Investor Presentation (July 2011)
26 slides from Suncor Energy's investor presentation, July 2011
Slide 1: Growth + Integration = Value Creation
Growth + Integration = Value Creation Investor Information July 2011 1 1
Slide 2: Legal notice
Legal notice This investor presentation contains certain “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward-looking information” within the meaning of applicable Canadian securities legislation (collectively, “forward-lo
Slide 3: Legal notice
Legal notice Reserves and contingent resource information presented herein is presented as Suncor’s working interest (operating and non-operating) before deduction of royalties, and without including any royalty interests of Suncor, and is at December 31, 2010. For more information on Suncor’s reser
Slide 4: Canada's premier integrated energy company
Canada’s premier integrated energy company with an unparalleled resource base and growth opportunities What differentiates us Best Estimate Contingent Resources • Production from continuing operations Conventional 3 > 90% crude oil in 2011 Mining 6 • Unparalleled oil sands resource base In Situ 11 •
Slide 5: Diversified asset base
Diversified asset base supports our integrated strategy and funds growth 5
Slide 6: One of the largest resource positions of any oil sands company
One of the largest resource positions of any oil sands company with a balanced resource mix of mined and in situ bitumen Joslyn Mine Fort Hills Mine FORT MacKAY Suncor properties Suncor-Total Joint Venture Suncor- joint properties Non-Suncor oil sands properties Voyageur Upgrader * * * * *Source: Go
Slide 7: Integrated model to deliver long-term shareholder value
Integrated model to deliver long-term shareholder value low-cost cash flow from conventional assets funds long-life assets To provide greater reliability and flexibility to our We produce natural gas as feedstock supplies, we produce bitumen through mining A staged approach to increasing crude oil p
Slide 8: Integrated and flexible business model
Integrated and flexible business model able to optimize value in market pricing Flexibility to Capture Market Swings* 160 max 140 June 2011 120 benchmark prices 100 US$/bbl average 80 60 40 min 20 0 Bitumen Blended Upgraded Refined Lubes & Specialty† Bitumen SCO Product Products Toronto Lubricants M
Slide 9: Targeting one million boe/d production by 2020
Targeting one million boe/d production by 2020 superior growth rate estimated relative to peers Long-term growth Medium-term growth 20% * 15% Oil Sands CAGR* 10% 10% 5% † Exploration and Production CAGR* 4% 0% SU SU CNQ CVE HES MRO COP XOM CVX COS RDS Source: Credit Suisse estimates excluding Suncor
Slide 10: Projected corporate growth of 8% to 2020
Projected corporate growth of 8% to 2020 Oil Sands growth of 10% underpinned by Suncor / Total Partnership 2014 2017 2020 2012 2013 2015 2016 2018 2019 2011 Planned Net Target Oil Sands Capacity kbpd First Oil Firebag 3 62.5 2011 Firebag 4 62.5 2013 Fort Hills ** 67 2016 Suncor/Total Partnership Voy
Slide 11: Sustainability underpins our growth
Sustainability underpins our growth environmental goals for 2015 and beyond Water goal performance metrics include fresh water consumption at Air goal performance metrics are a sum of air emissions (NOX, SOX and VOCs) operated sites in Oil Sands, In Situ, Refining and Marketing (excluding at operate
Slide 12: Track record of excellence
Track record of excellence recognition for sustainability achievements and CSR reporting • A constituent of the Dow Jones Sustainability Index for 12 consecutive years. • Suncor has been a participant on the Carbon Disclosure Project (CDP) since its inception. • A member of the FTSE4Good Index since
Slide 13: Technology and innovation
Technology and innovation supporting our drive to operational excellence Continued investment in new technologies • World-leading real-time operations scheduling • Oxygen-fired SAGD boilers (reduce NOx) • Hot bitumen pipe lines (reduce energy) • Geothermal energy (reduce emissions) • Zero liquid dis
Slide 14: Technology and innovation
Technology and innovation supporting our drive to operational excellence ter Wa e fin tu re nd gs Con Ma lings nd a tailin soli tai Sa ttled date se d taili TR ngs O TM pon ds es n ch e ngb ed n i ov Mi em gsr s ilin il ing as en Ta e ta re a rd an d ne if n ng bu l Fi e i ve r ed tur ach t o a i m
Slide 15: Paraffinic Froth Treatment
Paraffinic Froth Treatment applying new technologies to enhance flexibility in marketing mined bitumen Paraffinic Froth Treatment Suncor Upgraders Froth Fort Hills Project Settling Units Blendstock Solvent Suncor Mining Recovery Market Fungible Terminal Tailings Bitumen Solvent Primary Extraction Re
Slide 16: Operational Excellence Management System (OEMS)
Operational Excellence Management System (OEMS) supporting our Journey to Zero 16
Slide 17: Driving performance in In Situ operations
Driving performance in In Situ operations Firebag and MacKay River lead growth portfolio Exceptional portfolio of projects and properties: Firebag 4-6, MacKay River 2, Meadow Creek, Lewis, Chard, Frontier In Situ growth led by Firebag and MacKay River Internal synergies: Full integration of Firebag
Slide 18: Oil Sands
Oil Sands Driving reliability, operational excellence and continuous improvement 30 Mine Production Extracted Bitumen 350 SCO Production (millions tonnes) (kbpd) (kbpd) 600 300 500 250 20 400 200 300 150 10 200 100 100 50 0 0 0 Jan Jul Jan Jul Jan Jul Jan Jan Jul Jan Jul Jan Jul Jan Jan Jul Jan Jul
Slide 19: Exploration & Production – focused operations
Exploration & Production – focused operations pursuing high–return investments Combined former International & Offshore and Natural Gas into one segment to leverage our expertise in exploration, engineering and geo- sciences to more effectively deliver conventional oil and gas operations • Flexibili
Slide 20: Driving profitability in Exploration & Production
Driving profitability in Exploration & Production high-grading assets and investing in oil opportunities Achievements & Opportunities • Focus on advancing development projects: – Golden Eagle (UKCS) – approved* – Hebron (East Coast) – sanction in 2012 • Awarded three new licences and two extensions
Slide 21: Refining & Marketing
Refining & Marketing year to date cash flow from operations* > one billion R&M Earnings After Taxes (US cents per gallon refined products) Suncor Imperial Oil 25 Top quartile 20 Middle quartile US (1) 15 Bottom quartile 10 5 0 -5 -10 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 (1) U.S. peer group incl
Slide 22: Financial objectives
Financial objectives disciplined and focused strategy to deliver shareholder value 1. Shareholder value creation – Drive efficiencies across the organization Q2/10 Q1/11 Q2/11 to lower costs – Target ROCE* of 15% on new capital Net debt / cash flow 2.9x 0.9x 1.0x 2. Strong balance sheet from operati
Slide 23: Strong liquidity and patient debt
Strong liquidity and patient debt $9.7B of available liquidity $ billions, as of June 30, 2011 Revolving bank lines with 2013 maturity 7.5 Demand facilities 0.5 Total credit facilities 8.0 Available credit facilities 6.6 Cash on hand 3.1 Total liquidity 9.7 23
Slide 24: 2011 Production outlook and turnaround summary
2011 Production outlook and turnaround summary > 90% crude oil production Production (boe/d) 2011 outlook Oil Sands 280,000 – 310,000 Syncrude 35,000 – 37,000 Natural Gas 62,000 – 68,000 East Coast 58,000 – 65,000 International 80,000 – 90,000 Total production 520,000 – 570,000 Turnaround† Summary P
Slide 25: 2011 Capital expenditure outlook
2011 Capital expenditure outlook $6.7 billion in capital expenditure > 40% growth weighted 2011 Outlook Maintenance Capital Growth Capital Base Non – Recurring $ millions $ millions $ millions $ millions Oil Sands 4,555 1,460 670 2,425 Oil Sands Base 1,940 880 645 415 In Situ 2,115 300 25 1,790 Oil
Slide 26: Delivering value to shareholders
Delivering value to shareholders 23% rate of return compounded annually since IPO $8,000 Return on investment $7,000 Based on $100 invested in SU March 18, 1992 assuming reinvestment of dividends $6,000 $5,173.53 $5,000 $4,000 $3,000 $2,000 $1,000 $0 1999 2000 2001 2002 2003 2004 2005 2006 2010 1998