Suncor Energy Inc. · TSX:SU
Suncor Energy — Q1 2021 Earnings Presentation
19 slides from Suncor Energy's earnings presentation, May 4, 2021
Slide 1: Investor Information Q1 2021
SUNCOR ENERGY Investor Information Q1 2021 Published May 3, 2021 SUNCOR ENERGY
Slide 2: Integrated Model
Integrated Model 2019 / 2020 AVERAGES OF PRODUCTS SOLD TO MARKET REFINED PRODUCTS ~50% FFO1 456 kbpd2 SYNTHETIC CRUDE OIL OFFSHORE ~25% FFO1 GASOLINE (45%) ~15% FFO1 BITUMEN 315 kbpd2 DISTILLATES (45%) ~10% FFO1 ASPHALT (5%) OTHER (5%) 104 kbpd2 138 kbpd2 HIGH BASE PROCESSING, VALUE ENERGY INFRASTRU
Slide 3: Asset Value Maximization
500 Asset Value Maximization Converting hydrocarbons into $150.00 2019 / 2020 AVERAGES1 ($CAD) consumer products (Refer to pages 34 - 37 in Supplemental IR Deck for full reconciliation) Product Value Transportation Cost 456 Product Margin Processing Cost kbpd2 400 Royalty Cost $120.00 Feedstock Cost
Slide 4: Capital Allocation Framework
Capital Allocation Framework1 SUSTAINING CAPITAL2 1st Priority $2.75 - $3.75B Maintain core business & dividend DIVIDEND $1.3B3 100% % Discretionary Funds Flow4 80% 2nd Priority 60% Debt repayment, increased shareholder returns (buybacks & dividend increases3) 40% & economic capital 5 → allocation d
Slide 5: Breakeven Sensitivities & Cost Management
Breakeven Sensitivities & Cost Management 2021E FFO breakeven on $USD WTI pricing 1 Assumes USD WTI/bbl <$25/bbl WTI ~$30/bbl WTI ~$35/bbl WTI covers total enterprise covers total enterprise covers total enterprise operating costs operating costs operating costs + sustaining capital2 + sustaining ca
Slide 6: Operations & Consumer Network
Operations & Consumer Network 29 year Oil Sands Reserve Life Index1 ~25 mmbbl storage Western Canada ~1,875 PetroCanada sites2 ~15 mmbbl storage Eastern Canada Only refinery in Colorado ~10 mmbbl storage Central US & Gulf Coast OIL & REFINED PRODUCT STORAGE (SUNCOR OPERATED) CURRENT PIPELINES PROPOS
Slide 7: The Suncor Advantage
The Suncor Advantage1 L E A D I N G S U S T A I N A B I L I T Y T R A C K R E C O R D A C R O S S B U S I N E S S ENERGY PROCESSING, SOURCES INFRASTRUCTURE CONSUMER & LOGISTICS CHANNELS Access global markets through sale of unprocessed energy Processing & using extensive Refining hydrocarbons into p
Slide 8: Financial Strength & Leverage Targets
Financial Strength & Leverage Targets Net debt to FFO1 Supermajor Peer3 Oil Sands Peer3 Suncor demonstrates financial responsibility among peers Target ≤ 3x net debt to FFO2; net debt to FFO is 3.8x as of March 31, 2021 Suncor PEER 1x RANGE 13x Peer Peer Min Oil Sands Max Peer Median Supermajor TTM
Slide 9: 2021 Capital Allocation
2021 Capital Allocation1,2 ECONOMIC ($ millions) Q1 Rem 2021 2021 Total INVESTMENT CAPITAL3 Decline Mitigation 133 420 – 520 ~550 – 650 ~$1.15 - $1.35B E&P 62 290 – 340 ~350 – 400 In-Situ Well Pads 71 130 – 180 ~200 – 250 High grading capital spend on quick payout, $2B Free Funds Flow 135 365 – 415
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 2020 investment breakdown $2.7B in technology investment cumulative spend since 20151 $535M New technologies1 $535M spent on technology (~50% capitalized2) development & deployment in 2020 $2,700 $195M Low carbon power3 $2,165 (Base Plant Cogeneration capital spend
Slide 12: Our Sustainability Journey
Our Sustainability Journey A multi-decade history of environmental and social action 1 2 A track record of setting and exceeding sustainability targets 2009 Improve key environmental performance indicators by 2015 Energy efficiency, fresh water use, reclamation, air emissions – met or exceeded targe
Slide 13: Advancing Low Carbon Energy
Advancing Low Carbon Energy Projects 2014 BASELINE implemented2 Investing in low-carbon Fort Hills power extraction technology Energy efficiency 2030 TARGET Developing & deploying Projects under construction3 new technologies New GHG Cogeneration GOAL Running operations on Forty Mile Wind Reduce nat
Slide 14: GHG Regulatory Cost Sensitivities
GHG Regulatory Cost Sensitivities1 To help investors and analysts model the potential impact of current and future carbon pricing, Suncor has put forward a simplified model for our Canadian assets (excluding Exploration & Production), on a working interest basis. Estimated Variable 2020 ‘baseline’ s
Slide 15: 2021 Capital & Production Guidance
2021 Capital & Production Guidance1 CAPITAL EXPENDITURES PRODUCTION & OPERATING COSTS Capital2 Economic Production4 Cash Operating Costs5 ($ millions) Investment3 (boepd) ($/bbl) Oil Sands 2,550 – 2,950 25% Oil Sands Operations 410,000 – 445,000 $26.00 – $28.50 E&P 350 – 450 95% Fort Hills (54.11% W
Slide 16: Advisories
Advisories Forward-Looking Statements – Forward-Looking Statements – This estimates of recoverable quantities of oil, natural gas and liquids from presentation contains certain “forward-looking statements” within the Suncor’s properties; expected synergies and the ability to sustain Funds from opera
Slide 17: Slide Notes
Slide Notes Slide 2------------------------------------------------------------- asset sustainment and maintenance capital, inclusive of mboe/d, Suncor’s average daily production rate in 2020. (1) Funds from operations (FFO) is a non-GAAP financial associated capitalized interest, and dividends. Res
Slide 18: Slide Notes
Slide Notes Slide 9 -------------------------------------------------------------- curtailment and the COVID-19 pandemic’s impact on demand. intensity of 0.37 tonnes/MWh. These assumptions are based on (1) Full guidance is available at suncor.com/guidance. See Forward- See Forward-Looking Statements
Slide 19: 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