Suncor Energy Inc. · TSX:SU
Suncor Energy — Q3 2011 Earnings Presentation
22 slides from Suncor Energy's earnings presentation, November 2011
Slide 1: Growth Integration Value Creation: Investor Information
Growth Integration Value Creation Investor Information November 2011 1
Slide 2: Contents
Contents Our Company and Resource 5-7 • Oil sands pioneer, ongoing leadership position Our Strategy 8 - 13 • Lower risk, oil sands focused growth • Optimized netbacks through forward integration Our Operations 14 - 18 • Operational excellence driving improved reliability and profitability Our Financ
Slide 3: Legal notice
Legal notice Forward-Looking Statements - 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 legislati
Slide 4: Legal notice (Continued)
Legal notice (Continued …) Oil Sands cash operating costs for the following quarters (3 months ended) are defined and reconciled in the following documents: (i) Q3 2011 and 2010 - Segmented Results and Analysis – Oil Sands section of Suncor’s MD&A dated November 1, 2011; (ii) Q2 2011 and Q2 2010 - S
Slide 5: Canada's premier integrated energy company
Canada’s premier integrated energy company with an unparalleled resource base and growth opportunities What differentiates Suncor Over 35 years of production at current rates (1) Billions of Barrels • Largest reserves in the oil sands* Contingent Resources (2) • Strategic balance between mining, Con
Slide 6: Oil-weighted assets that provide strong cash flow
Oil-weighted assets that provide strong cash flow supports our integrated strategy and funds growth 6
Slide 7: Largest reserves in the oil sands
Largest reserves in the oil sands monetized through a balanced portfolio of mining, in situ and upgrading Joslyn Mine Fort Hills Mine FORT MacKAY Suncor properties Suncor-Total Joint Venture Suncor- joint properties Non-Suncor oil sands properties Voyageur Upgrader * * * * * Source: Government of Al
Slide 8: Targeting one million boe/d production by 2020
Targeting one million boe/d production by 2020 superior growth rate relative to peers Proven and anticipated long-term production growth Medium-term growth Total production CAGR* of 10% 2000 to 2020e Anticipated production CAGR* vs. peers 2011 - 2014 1000 % 800 15% Production Mboe/d 600 10% 400 5% 2
Slide 9: Leveraging known resources for lower risk growth
Leveraging known resources for lower risk growth Suncor / Total JV underpins oil sands expansion Planned Net Target 2012 2015 2018 2013 2014 2016 2017 2019 2020 2011 Capacity kbpd First Oil Oil Sands Firebag 3 62.5 2011 Firebag 4 62.5 2013 Fort Hills(2) 67 2016 Suncor/Total Partnership Voyageur Upgr
Slide 10: 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 11: Access to global market pricing
Access to global market pricing able to optimize value of our crude oil production Upstream Crude Downstream Approximate Production Refining Market Exposure (1) Feedstock 73% 7% WTI-based WTI- 66% prices based prices Oil Sands 93% Global-based product prices Refining & Marketing 27% 27% Brent- based
Slide 12: Generating profit across the value chain
Generating profit across the value chain integration creates natural hedge against price and differential movement • Substantial value uplift in The value of Suncor’s integrated oil each stage of integration 140 sands and refining operations • Refining network captures 120 global product pricing, Ca
Slide 13: Technological innovation
Technological innovation improving economics and reducing environmental footprint Tailings Reduction OperationsTM TRO - Tailings Reduction OperationsTM are expected to reduce land use and speed land reclamation Innovative consumer products Higher quality bitumen Paraffinic Froth Treatment CIVITAS -
Slide 14: Oil Sands operations achieve record third quarter production
Oil Sands operations achieve record third quarter production improved reliability has resulted in rising output Mine Production Extracted Bitumen Upgraded Production (millions tonnes) (kbpd) (kbpd) 350 600 300 500 250 20 400 200 300 150 10 200 100 100 50 0 0 0 2008 2009 2010 2011 2008 2009 2010 2011
Slide 15: 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 In Situ growth led by Firebag and MacKay River Firebag 4-6, MacKay River 2, Meadow Creek, Lewis, Chard, Frontier Firebag built to support significant production g
Slide 16: Refining & Marketing delivering record earnings
Refining & Marketing delivering record earnings industry leading performance, >$2 billion cash flow from operating activities YTD R&M Net Income (1) (US dollars per barrel of capacity) Suncor Imperial Oil 25 Top quartile of peers 20 Median of peers (2) Bottom quartile of peers 15 10 5 0 Q3 Q4 Q1 Q2
Slide 17: Exploration & Production generating powerful earnings
Exploration & Production generating powerful earnings low cost operations, >$2 billion cash flow from operations YTD • Conventional low cost E&P production, cash flow and earnings production Operating earnings (1) • Largely Brent-based pricing 50 400 Cash flow from operations (1) • Reduces Suncor’s
Slide 18: 2011 Production outlook and turnaround summary
2011 Production outlook and turnaround summary > 87% crude oil production 2011 Outlook Production (boe/d) Oil Sands 300,000 – 310,000 Syncrude 35,000 – 37,000 North America Onshore 63,000 – 67,000 East Coast Canada 64,000 – 70,000 International 68,000 – 76,000 Total production 530,000 – 560,000 Turn
Slide 19: Superior cash flow generation
Superior cash flow generation maximizing shareholder returns Suncor is generating record cash flow on both an absolute and per share basis Cash flow from operating activities Suncor cash flow from operating activities Suncor versus peers, 2011 first six months (1) $6,000 $3.50 $8,000 YTD $3.00 $7,00
Slide 20: Stable operating costs
Stable operating costs targeting $35 per barrel or less in oil sands operating costs (1) Oil Sands Cash Operating Costs Unscheduled downtime ($C/bbl) U2 Turnaround OPEX 50 OPEX assuming normal $35/bbl production (2) 40 30 1 Reliability 20 10 2 Productivity 0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 3 Technology 2
Slide 21: 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 22: Financial strength
Financial strength disciplined and focused strategy to deliver shareholder value 1 Shareholder value creation Return on investment including reinvested dividends 2 Strong balance Sheet Suncor Energy $3,687 S&P 500 3 Financial flexibility 4 Returning cash to shareholders 12-months ended Q3/10 Q2/11 Q