Suncor Energy Inc. · TSX:SU
Suncor Energy — Q1 2020 Earnings Presentation
20 slides from Suncor Energy's earnings presentation, May 6, 2020
Slide 1: Investor Information Q1 2020
SUNCOR ENERGY Investor Information Q1 2020 Published May 5, 2020 SUNCOR ENERGY
Slide 2: Living our purpose through COVID-19 response
Living our purpose through COVID-19 response Suncor’s Purpose To provide trusted energy that enhances people’s lives, while caring for each other and the earth What we are doing to promote the safety & well-being of our employees, customers & communities • As an integrated energy provider, we contin
Slide 3: Financial Health & Long Term Value Focus
Financial Health & Long Term Value Focus reduction in go-forward • Balance sheet strength & financial health is the foundation annualized cash of our strategy & capital allocation framework ~$4.5B commitments1 (from original 2020 guidance) • Capital, operating cost & dividend reduction support our s
Slide 4: 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 5: 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 kbpd2 Product Margin Processing Cost ~1/3 margin from 400 Royalty Cost Feeds
Slide 6: 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 7: Value Creation & Cost Management
Value Creation & Cost Management Leading FFO/boe2 & Total Operating Expenses Fort Hills & $1B target Value over volume Hebron come cost FFO2/boe Total Operating reductions5 Elevated 2019 costs due to Expenses ($B) online & ramp ($/boe) higher Y/Y FFO1 (+$800M) in up during year 12 $35 production vs.
Slide 8: 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) SUNCOR ENERGY 1, 2 See S
Slide 9: 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 10: Strong Liquidity & Financial Position
Strong Liquidity & Financial Position Liquidity1 Manageable debt maturity profile1 Cash & cash equivalents (~$2.23B) (C$ billion – as of March 31, 2020) ~$8B & available credit facilities (~$5.90B) as of March 31, 2020 ($1.25B medium-term note offering 2020 $0.0 + $300M credit facility entered into
Slide 11: 2020 Capital Allocation
2020 Capital Allocation1,2 High grading ($C millions) Q1 Rem 20201 Total2 capital spend on ECONOMIC Decline Mitigation 257 ~455 – 555 ~715 – 815 quick payout, top INVESTMENT E&P 162 ~400 – 450 ~565 – 615 CAPITAL1 quartile IRR projects $1.4 – 1.6B In-Situ Well Pads 95 ~55 – 105 ~150 – 200 to improve
Slide 12: $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 13: 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 Improve key environmental performance indicators by 2015 ✓ 2009 Energy efficiency, fresh water use, reclamation, air emissions – met or exceeded tar
Slide 14: Advancing Low Carbon Energy
Advancing Low Carbon Energy Today Fort Hills extraction 10% technology Removing heavier intensity carbons from process reduction (~2.6 Mt/y CO2e) enhances quality, achieved by yield & lifecycle GHG intensity2 YE 2018 Energy efficiency 2025 Investing in New low-carbon cogeneration power ~2.5Mt/y GHG
Slide 15: 2020 Capital & Production Guidance
2020 Capital & Production Guidance1 2020 Capital2 Economic Investment3 Production4 $ millions percent boepd Oil Sands 2,500 – 2,650 25% 410,000 – 435,000 Oil Sands operations E&P 550 – 650 95% 55,000 – 65,000 Fort Hills Downstream 450 – 550 20% 165,000 – 180,000 Syncrude Corporate 100 – 150 80% 100,
Slide 16: Notes
Notes SUNCOR ENERGY 15
Slide 17: Advisories
Advisories Forward-Looking Statements – Forward-Looking Statements – This Suncor’s properties; expected synergies and the ability to sustain included because management uses the information to analyze presentation contains certain “forward-looking statements” within the reductions in costs; the abil
Slide 18: Slide Notes
Slide Notes Slide 1------------------------------------------------------------- Slide 3------------------------------------------------------------- opportunities currently being evaluated and which may be (1) See Forward-Looking Statements and Impact of the COVID- (1) Funds from operations (FFO) i
Slide 19: Slide Notes
Slide Notes Slide 7 -------------------------------------------------------------- expenditures see the Capital Investment Update section of (1) As at December 31, 2019 and assumes that approximately the Q1 MD&A. Estimated impacts have been factored into (4) See Suncor’s 2019 Report on Sustainabilit
Slide 20: 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