Suncor Energy Inc. · TSX:SU
Suncor Energy — Investor Presentation (May 2013)
21 slides from Suncor Energy's investor presentation, May 2013
Slide 1: Suncor Investor Information
Suncor Investor Information May 2013 Please see legal notice on pages 20 and 21
Slide 2: Canada’s leading integrated energy company
Canada’s leading integrated energy company Focused on profitable growth and returning cash to shareholders The Suncor Advantage Over 34 years of production at current rates (5) • Largest reserves in the oil sands(1) • Integrated model maximizes the value of production – capturing ±95% of world price
Slide 3: Profitable portfolio of oil producing assets
Profitable portfolio of oil producing assets Growing oil sands business with complementary upstream & downstream operations Circles are scaled to relative capacities. 3
Slide 4: Largest reserves in the oil sands
Largest reserves in the oil sands(1) Monetized through a balanced portfolio of mining, in situ and upgrading(2) Millennium & North MacKay River In Situ Steepbank Extension Mine 30 kb/d of bitumen capacity 310-330 kb/d of bitumen capacity 100% working interest (depending on ore grade) 100% working in
Slide 5: Suncor’s capital allocation priorities
Suncor’s capital allocation priorities Disciplined approach to maximize shareholder returns Return cash to shareholders • Competitive, sustainable and growing dividend • Value-driven share repurchases Invest in Optimize base profitable growth business • Premium quality • Improve upgrading reliabilit
Slide 6: A rich suite of profitable growth projects
A rich suite of profitable growth projects Including plans for 100 kb/d of debottlenecks and expansions at an estimated 400 cost of $20K - $30K per flowing barrel and a significant amount of higher-value light oil growth 350 Planned Growth(1) (kb/d increase versus 2012 actuals) Joslyn(3) 300 Mined P
Slide 7: Access to global market pricing
Access to global market pricing Able to optimize the value of our crude oil production 74% 64% 26% 89% 6% 4% 25% 6% 1% 94% (1) Based on Suncor’s crude oil and liquids production volumes for the 12 months ended March 31, 2013. 7 (2) Includes 5,600 bbls/d of natural gas liquids and crude oil productio
Slide 8: Technology is fundamental to how we do business
Technology is fundamental to how we do business $175 mm budgeted in 2013 on R&D spending, targeting higher production, enhanced profitability and lower environmental impacts Solvent extraction Membrane de-oiling and water treatment Non-condensable gas co-injection Autonomous haulage technology Steam
Slide 9: Leading technology development
Leading technology development Our strategy is to advance technology through collaboration and innovation Current technology example Emerging technology example ESPs: Progressing Electric N-SOLVTM: Evolving toward Submersible Pump technology(1) waterless recovery Working with vendors on technology t
Slide 10: Working collaboratively on sustainability
Working collaboratively on sustainability Broad recognition for sustainability achievements and CSR reporting Industry Leadership • Co-founded OSLI (2009), OSTC (2010) and COSIA (2012) • Co-founded OSDG (2000) and CEMA (2003) Performance Awards & Recognition • Winner of the President’s Award in the
Slide 11: Oil Sands operations set new production records
Oil Sands operations set new production records A focus on operational excellence is driving continuous improvement across our business through a structured and disciplined approach to everything we do • Improved Reliability Extracted Bitumen Upgraded Production o Reliability improving – targeting (
Slide 12: Tightly controlling operating costs
Tightly controlling operating costs Targeting reductions in oil sands cash operating costs per barrel(1) 50 C$/bbl Continuously reduce costs: • Reliability 40 o targeting 90%+ facilities utilization • Productivity o Driving continuous improvement 30 through Operational Excellence Management System •
Slide 13: Production overview
Production overview Expecting over 10% oil growth in 2013 2013 2012 Production Outlook Actual Production Oil Sands (bpd) 350,000 — 380,000 325,000 Syncrude (bpd) 34,000 — 38,000 34,000 North America Onshore (boe/d) 41,000 — 46,000(1) 54,000 East Coast Canada (bpd) 55,000 — 60,000 46,000 Internationa
Slide 14: In Situ operations leading Suncor’s growth
In Situ operations leading Suncor’s growth Exceptional portfolio of projects and properties Demonstrated track record of growth • Reliable and growing production 175 Firebag 37% CAGR(1) • Firebag Stage 4 delivered 15% under budget 150 MacKay River since 2002 Production (kb/d) • Infill wells at Fireb
Slide 15: Exploration & Production—high quality asset base
Exploration & Production—high quality asset base Diversified cash flow and exposure to global pricing Operating earnings (1) Cash flow from operations (1) North America Onshore contribution North America Onshore(2) contribution to to operating earnings in Q1 2013 cash flow from operations in Q1 2013
Slide 16: Refining & Marketing—optimizing the oil sands barrel
Refining & Marketing—optimizing the oil sands barrel Overall #1 among peers for the past three years(1) Edmonton Refinery (140 kb/d) - 100% oil sands integration -35 kb/d heavy feedstock R&M Net Earnings (2) Sarnia Refinery (85 kb/d) - approximately 75% synthetic crude oil Montreal Refinery (137 kb/
Slide 17: 2013 Capital expenditure outlook
2013 Capital expenditure outlook 45% growth focused Expect to fund capital spending from cash flow 2013 Outlook Sustaining Capital Growth Capital $ millions $ millions $ millions Oil Sands 4,195 2,960 1,235 Oil Sands 3,110 2,540 570 Oil Sands Ventures 1,085 420 665 E&P 1,845 205 1,640 Refining & Mar
Slide 18: Financial strength
Financial strength Maintaining a strong balance sheet and spending within our means 12 months ended • Enables Suncor to grow profitably and Mar 31, 2013 Target accelerate return of cash to shareholders • 2013 planned capital spending of $7.3 billion Return on capital employed(1) expected to be funde
Slide 19: Dividends and share repurchases
Returning cash to shareholders Dividends will be reliable, sustainable, meaningful and competitive Share repurchases will be value-driven Significant dividend growth 2.50 Share Repurchases(2) • 54% increase in Q2 2013 Cash Dividends(2) • 30% dividend CAGR over past five years(1) 2.00 Dividends and s
Slide 20: 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 21: Legal notice (continued)
Legal notice (continued) Operating earnings and cash flow from operations for Suncor’s Exploration and Production segment for 2009 to 2012 are defined and reconciled in Suncor’s MD&A dated February 26, 2013, and in the case of cash flow from operations for 2009, Suncor’s annual MD&A for the year end