Suncor Energy Inc. · TSX:SU
Suncor Energy — Q4 2021 Earnings Presentation
19 slides from Suncor Energy's earnings presentation, Feb 2, 2022
Slide 1: Investor Information Q4 2021
SUNCOR ENERGY Investor Information Q4 2021 Published February 2, 2022 SUNCOR ENERGY
Slide 2: Integrated Model
Integrated Model 2020 / 2021 AVERAGES OF PRODUCTS SOLD TO MARKET REFINED PRODUCTS ~45% AFFO1 441 kbpd2 SYNTHETIC CRUDE OIL OFFSHORE ~30% AFFO1 GASOLINE (45%) BITUMEN 307 kbpd2 DISTILLATES (45%) ~15% AFFO1 ~10% AFFO1 ASPHALT (5%) OTHER (5%) 93 kbpd2 143 kbpd2 HIGH BASE PROCESSING, VALUE ENERGY INFRAS
Slide 3: Asset Value Maximization
500 Asset Value Maximization Converting hydrocarbons into $150.00 2020 / 2021 AVERAGES1 ($CAD) consumer products (Refer to pages 38 - 43 in Supplemental IR Deck for full reconciliation) Product Value Transportation Cost 441 Product Margin Processing Cost kbpd2 400 Royalty Cost Feedstock Cost $120.00
Slide 4: Operations & Consumer Network
Operations & Consumer Network 29 year Oil Sands Reserve Life Index1 ~25 mmbbl storage Western Canada ~1875 Petro Canada sites2 ~15 mmbbl storage Eastern Canada Only refinery in Colorado ~10 mmbbl storage Central US & Gulf Coast 3 Oil & Refined product storage (SU operated) SUNCOR ENERGY 1, 2, 3 See
Slide 5: 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 Access global markets through & LOGISTICS CHANNELS sale of unprocessed energy products Processing & using extensive Refining hydrocarbo
Slide 6: Acceleration of Capital Allocation
Acceleration of Capital Allocation1 All elements of 5-year plan Investor Day Plan continue to be accelerated Shareholder returns Dividends 100% increase in 2021 $12 (vs. target of 5-year ~25% dividend2 CAGR) Buybacks May 2021 strip5 $10 ~6% repurchased in 2021 – largest in Uses of adjusted funds flo
Slide 7: 2021 – Delivering Fortified Balance Sheet & Leading Cash Returns
2021 – Delivering Fortified Balance Sheet & Leading Cash Returns ~10% Cash yield Full year 2021 - dividends & share buybacks ~70% of AFFO1 (includes tax refund) Share buybacks ~6% Shares repurchased Full year 2021 - highest rate of buybacks in Suncor history Fortified balance sheet ~$4B Full year 20
Slide 8: Breakeven Sensitivities & Cost Management
Breakeven Sensitivities & Cost Management1,2,3 AFFO4 breakeven on $USD WTI pricing Assumes USD WTI/bbl ~$30/bbl WTI5 ~$35/bbl WTI5 covers total enterprise covers total enterprise operating costs operating costs + sustaining capital6 + sustaining capital6 + dividend Sustainably lowering operating bre
Slide 9: $2.15B Free Funds Flow Growth Update
$2.15B Free Funds Flow Growth Update1,2 Structural and sustained free funds flow1 for years 2021 – 2025 inclusive3, through margin improvements, operating & sustaining capital cost reductions, & growth opportunities Projects Implemented by 2023 2024 – 2025 Deployment Value Drivers Coke Fired Boiler
Slide 10: 2022 Capital Allocation of $4.7 Billion
2022 Capital Allocation of $4.7 Billion1,2 ECONOMIC INVESTMENT ($ millions) 2022 Total CAPITAL3 Decline Mitigation ~650 – 750 ~$1.5B E&P ~400 – 450 High grading capital In-Situ Well Pads ~250 – 300 spend on quick payout, $2.15B Free Funds Flow Growth3,4 ~550 – 600 top quartile IRR projects to improv
Slide 11: Our Sustainability Journey
Our Sustainability Journey 1995 2000 2005 2010 2015 2016 2017 2018 2019 2020 2021 First First Set four Set long- First climate risk Completed Canada’s Invested in CCUS environment renewable long- term term carbon report first coast-to-coast EV technology with report energy environment and social cha
Slide 12: Our GHG Emissions Objective – net zero by 2050
Our GHG Emissions Objective – net zero by 20501,2 Opportunities for reducing emissions across our value chain 10 Mt per year reduction by 20301,2 up to ~40% up to ~20% up to ~20% up to ~50% Reduce our own emissions up to ~60% through energy efficiency, fuel switching and CCUS Help reduce others’ emi
Slide 13: 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 illustrative purposes for our Canadian assets (excluding Exploration & Production), on a working interest basis. Estimated
Slide 14: Growth & resilience through the cycle
Growth & resilience through the cycle1 2015 – 2019 Average 2021 – 2025 Average Growth Phase Optimization Phase Increased cash ~25% shareholder returns Higher shareholder returns2,3 $2.20/sh ~$2.80/sh ~15% Lower share count Cash return includes dividends and share repurchases Debt repaid ~$8B 2021-20
Slide 15: 2022 Capital & Production Guidance
2022 Capital & Production Guidance1 CAPITAL EXPENDITURES PRODUCTION & OPERATING COSTS Capital2 Economic Production4 Cash Operating Costs5 ($ millions) Investment3 (boepd) ($/bbl) Oil Sands 3,200 – 3,350 25% Oil Sands Operations 395,000 – 435,000 $25.00 – $28.00 E&P 400 – 450 95% Fort Hills (54.11% W
Slide 16: Advisories
Advisories Forward-Looking Statements – Forward-Looking Statements – This savings; applicable laws and government policies; future production have any standardized meaning and therefore are unlikely to be presentation contains certain “forward-looking statements” within the rates; the development an
Slide 17: Slide Notes
Slide Notes Slide 2------------------------------------------------------------- Advisories. (6) Sustaining capital represents anticipated asset sustainment and (1) Adjusted funds from operations (AFFO) is a non-GAAP financial (2) Dividend assumptions have accelerated since May 2021 Investor Day mai
Slide 18: Slide Notes
Slide Notes Slide 11 -------------------------------------------------------------- be no assurance these opportunities will be pursued or if pursued that (7) Baseline adjusted funds from operations (AFFO) has been derived from (1) COSIA refers to Canadian Oil Sands Innovation Alliance. they will re
Slide 19: Investor Relations Contacts
Investor Relations Contacts Trevor Muhammad Christian Matilda Stacey Bell Usman Leung Kragulj Hunter Vice President IR Director IR Manager IR Manager IR Coordinator IR [email protected] [email protected] [email protected] [email protected] [email protected] Visit us at the Investor Centre on