Suncor Energy Inc. · TSX:SU
Suncor Energy — Q3 2020 Earnings Presentation
18 slides from Suncor Energy's earnings presentation, Oct 29, 2020
Slide 1: Investor Information Q3 2020
SUNCOR ENERGY Investor Information Q3 2020 Published October 28, 2020 SUNCOR ENERGY
Slide 2: Integrated Model
Integrated Model 2018 / 2019 AVERAGES OF PRODUCTS SOLD TO MARKET REFINED PRODUCTS ~50% FFO1 470 kbpd2 SYNTHETIC CRUDE OIL OFFSHORE ~25% FFO1 GASOLINE (43%) BITUMEN 309 kbpd2 DISTILLATES (42%) ~15% FFO1 ~10% FFO1 ASPHALT (6%) OTHER (9%) 104 kbpd2 163 kbpd2 HIGH BASE PROCESSING, VALUE ENERGY INFRASTRU
Slide 3: Asset Value Maximization
Converting 500 Asset Value Maximization hydrocarbons into consumer products $150.00 2018 / 2019 AVERAGES1 ($CAD) (Refer to pages 36 - 39 in Supplemental IR Deck for full reconciliation) 470 Product Value Transportation Cost kbpd3 Product Margin Processing Cost ~1/3 margin from 400 Royalty Cost Feeds
Slide 4: Capital Allocation & Breakeven Sensitivities
Capital Allocation & Breakeven Sensitivities Disciplined Capital Allocation1 O R D E R O F P R I O R I T Y Annual FFO1,3 allocation (C$B) Sustained Balance price outlook2 sheet leverage (WTI USD$/bbl) metrics Sustaining Economic Buyback Dividend5 capital1,4 investment6 target5 $35 - $45 Upper range
Slide 5: Value Creation & Cost Management
Value Creation & Cost Management Leading FFO/boe2 & Total Operating Expenses Fort Hills & $1B target Value over volume Hebron come cost Total Operating reductions5 FFO2/boe Elevated 2019 costs due to Expenses ($B) online & ramp higher Y/Y FFO1 (+$800M) in up during year 12 $35 production vs. bitumen
Slide 6: Operations & Consumer Network
Operations & Consumer Network 29 year Oil Sands Reserve Life Index1 ~25 mmbbl storage Western Canada ~1,850 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 PROCESSING, ENERGY CONSUMER INFRASTRUCTURE SOURCES CHANNELS & LOGISTICS Access global markets through sale of unprocessed energy Processing & using extensive Refining hydrocarbons into p
Slide 8: Strong Liquidity & Financial Position
Strong Liquidity & Financial Position Liquidity1 Manageable debt maturity profile1 ~$9B Cash & cash equivalents (~$1.5B) & available credit facilities (~$7.1B) (C$ billion – as of September 30, 2020) as of September 30, 2020 2020 $0.0 ALow Investment grade credit rating 2021-2022 $1.7 BBB+ DBRS Rati
Slide 9: 2020 Capital Allocation
2020 Capital Allocation1,2 ECONOMIC ($millions) Q1 Q2 Q3 Rem 20201 Total2 INVESTMENT Q3 $259M___ ____________ Decline Mitigation 257 158 127 85 – 185 ~625 – 725 CAPITAL E&P 162 123 92 50 – 100 ~425 – 475 $1.3 - $1.5B Q2 $261M___ ____________ In-Situ Well Pads 95 35 35 35 – 85 ~200 – 250 High grading
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 2019 investment breakdown >$2B in technology investment cumulative spend since 20151 $830M New technologies1 $830M spent on $2,165 (~70% capitalized2) technology development & deployment in 2019 $115M Low carbon power3 (Base Plant Cogeneration capital spend) $1,335
Slide 12: Our Sustainability Journey
Our Sustainability Journey A multi-decade history of environmental and social action 1 2 A track record of setting and exceeding sustainability targets 2009 Improve key environmental performance indicators by 2015 Energy efficiency, fresh water use, reclamation, air emissions – met or exceeded targe
Slide 13: Advancing Low Carbon Energy
Advancing Low Carbon Energy ~10% intensity reduction 2014 BASELINE achieved to date3 Investing in Today low-carbon Fort Hills power extraction technology Energy efficiency ~10% intensity 2030 TARGET Developing & deploying reduction sanctioned4 new technologies New cogeneration GHG ~2.5Mt/y GHG emiss
Slide 14: 2020 Capital & Production Guidance
2020 Capital & Production Guidance1 CAPITAL EXPENDITURES PRODUCTION & OPERATING COSTS Capital2 Economic Production4 Cash Operating Costs5 ($ millions) Investment3 (boepd) ($/bbl) Oil Sands 2,600 – 2,800 25% Oil Sands Operations 355,000 – 380,000 $28.00 – $31.00 E&P 450 – 500 95% Fort Hills (54.11% W
Slide 15: Advisories
Advisories Forward-Looking Statements – Forward-Looking Statements – This sources of debt and equity capital; the timing and the costs of well and Funds from operations (previously referred to as cash flow from presentation contains certain “forward-looking statements” within the pipeline constructi
Slide 16: Slide Notes
Slide Notes Slide 2------------------------------------------------------------- business environment, which are subject to change. Actual Slide 6 -------------------------------------------------------------- (1) Funds from operations (FFO) is a non-GAAP financial results may differ materially. Inc
Slide 17: Slide Notes
Slide Notes Slide 9 -------------------------------------------------------------- may differ materially. See Forward-Looking Statements in the by its indicated range while holding the rest constant. FFO is a (1) Balance of capital expenditures represents Asset Sustainment Advisories. non-GAAP finan
Slide 18: 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 [email protected] [email protected] [email protected] [email protected] [email protected] Visit us at the Investor Cen