Driving operating leverage Impact: $175M/yr cost savings SUNCOR ENERGY 7 Annual mobile maintenance spend | --- | --- | --- | --- | --- | --- | --- | --- | |-------|-------|-----------------|-------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2024 | | Business Update | | | | | | 1 Winning proposition Driving improvement – Upstream – Downstream – Corporate Maximizing returns Closing comments Agenda 2 3 4 Rich Kruger Chief Executive Officer 40+ years experience SUNC ...

Suncor Energy, Inc. (NYSE:SU) 2024 Business Update Call May 21, 2024 9:30 AM ET Company Participants Troy Little - VP, IR Rich Kruger - President, CEO & Director Peter Zebedee - EVP, Oil Sands Dave Oldreive - EVP, Downstream Kris Smith - CFO Shelley Powell - SVP, Operational Improvement & Support Services Conference Call Participants Dennis Fong - CIBC Capital Markets Greg Pardy - RBC Capital Markets Neil Mehta - Goldman Sachs Roger Read - Wells Fargo Securities Menno Hulshof - TD Cowen John Royall - JPMorg ...

Financial Data and Key Metrics Changes - The company aims for an additional free funds flow improvement of $3.3 billion per year by the end of 2026, which will reduce the WTI breakeven by $10 per barrel [7][14] - A revised net debt target for 100% free funds payout has been increased to $8 billion, reflecting confidence in the plan and financial resiliency [7][38] - The company expects to deliver more than $40 billion of adjusted funds from operations from 2024 to 2026 in a $75 WTI business environment [36][45] Business Line Data and Key Metrics Changes - Upstream operations are expected to increase production by over 100,000 barrels a day while holding controllable costs flat, reducing operating costs per barrel by 8% over the next three years [17][24] - Downstream operations are projected to contribute to 25% of the $10 per barrel improvement, focusing on cost reduction and increasing refining throughput [26][28] - The retail business is on track to deliver $200 million in margin growth by 2026, with plans to enhance the Petro-Canada retail network [32][33] Market Data and Key Metrics Changes - The company has achieved record volumes in both upstream and downstream operations, moving to the head of the class in reliability [12][15] - The transition to autonomous mining is expected to deliver $175 million per year in cost savings, with plans for full autonomy at the base plant by year-end [22][23] Company Strategy and Development Direction - The company’s strategy focuses on creating value through an integrated upstream and downstream asset base, leveraging large-scale, long-life Oil Sands resources [8][9] - The management emphasizes a commitment to operational excellence, cost reduction, and maximizing the value of existing assets [16][26] - The company plans to increase share buybacks to 75% of free funds starting in the second quarter, with a goal of reaching 100% once net debt is near $8 billion [7][43] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a $10 per barrel reduction in breakeven costs, with approximately $3 per barrel already achieved [14][15] - The leadership team highlighted the importance of operational improvements and cost efficiencies to navigate inflation and other headwinds [51][62] - The company is focused on maintaining a strong balance sheet while delivering substantial returns to shareholders through dividends and buybacks [38][45] Other Important Information - The company has made significant reductions in above-field costs, resulting in about $450 million in cost reductions [35] - The transition to autonomous operations is a key lever for delivering safer, more reliable, and cost-effective operations [22][23] Q&A Session Summary Question: How do cost improvements offset headwinds from increased haul distance and inflation? - Management clarified that the improvement plans account for headwinds, ensuring net improvements are presented [50][51] Question: What is the production capacity at Firebag, considering recent improvements? - Management indicated that Firebag has significant resource potential, with ongoing efforts to optimize production through debottlenecking [53][56] Question: What is the plan for Fort Hills to achieve optimal performance? - Management outlined a focus on transitioning mining operations and improving efficiency through the deployment of ultra-class haul trucks [71]

All financial numbers in this article are in Canadian dollars unless noted otherwise. Oil and gas prices are always in US$. Introduction XtockImages Essentially, there are two reasons why Canada's role in the global energy sector is essential: Canada has a lot of reserves. In fact, as reported by the aforementioned Reuters article, it holds the world's third-largest bitumen reserves. This means producers do not need to be afraid to run out of high-quality reserves anytime soon. Most major Canadian producers ...

Company Participants Greg Pardy - RBC Capital Markets Roger Read - Wells Fargo Securities Manav Gupta - UBS Menno Hulshof - TD Cowen Patrick O'Rourke - ATB Capital Markets Dennis Fong - CIBC Capital Markets John Royall - JPMorgan Chase & Co. I would now like to hand the conference over to your speaker, Mr. Troy Little, Vice President of Investor Relations. You may begin, sir. Certain financial measures referred to in these comments are not prescribed by Canadian Generally Accepted Accounting Principles. For ...

Investor Information Disciplined investment and cost management 2 Upgrading capacity 556 mbpd FFF Q4 YTD $7.5B Strong balance sheet and industry leading cash returns1 AFFO SUNCOR ENERGY Long-life, competitively advantaged assets Deliver superior long-term shareholder value Net debt to AFFO Q4 2023 TTM 1.0x AFFO Q4 YTD $13.3B 1 See Slide Notes and Advisories $15 $0 (C$ billion) Strong balance sheet Investment grade credit rating SUNCOR ENERGY Disciplined capital allocation1 Calculating % available for share ...

Suncor Energy Inc. (NYSE:SU) Q4 2023 Earnings Conference Call February 22, 2024 9:30 AM ET Company Participants Troy Little - Vice President, Investor Relations Rich Kruger - President and Chief Executive Officer Kris Smith - Chief Financial Officer Peter Zebedee - Executive Vice President, Oil Sands Dave Oldreive - Executive Vice President, Downstream Shelley Powell - Senior Vice President, Operational Improvement & Support Services Conference Call Participants Greg Pardy - RBC Capital Markets Dennis Fong ...

Financial Performance - Suncor's Oil Sands operating revenues for Q4 2023 were CAD 6,987 million, an increase from CAD 6,664 million in Q4 2022[56] - Adjusted operating earnings for the Oil Sands segment decreased to CAD 1,526 million in Q4 2023 from CAD 1,719 million in Q4 2022, primarily due to lower realized crude oil prices[57] - The company's adjusted funds from operations for the year ended December 31, 2023, were CAD 10,725 million, down from CAD 13,831 million in 2022[56] - Operating revenues for the Exploration and Production segment decreased to $495 million in Q4 2023 from $1.085 billion in Q4 2022, with adjusted operating earnings dropping to $133 million from $578 million[86][90] - Refining and Marketing operating revenues decreased to $8.053 billion in Q4 2023 from $9.019 billion in Q4 2022, with adjusted operating earnings falling to $598 million from $1.529 billion[102][103] - The company incurred an adjusted operating loss of $341 million in Q4 2023, an improvement from a loss of $482 million in Q4 2022[114] - For the twelve months ended December 31, 2023, return on capital employed (ROCE) was 15.6%, down from 19.4% in 2022[132] - Net earnings for Q4 2023 reached $2.82 billion, up 83% from $1.54 billion in Q3 2023[158] - Net earnings for Q4 2023 were $2,820 million, slightly up from $2,741 million in Q4 2022, with annual net earnings at $8,295 million compared to $9,077 million in 2022[217] Production and Sales - Total Oil Sands bitumen production increased to 866.2 mbbls/d in Q4 2023, compared to 810.1 mbbls/d in Q4 2022, driven by increased working interest and strong production at Fort Hills[59] - Net SCO production was 475,700 bbls/d in Q4 2023, down from 517,500 bbls/d in Q4 2022, reflecting significant planned turnaround activities[66] - Non-upgraded bitumen sales volumes rose to 277,500 bbls/d in Q4 2023, compared to 174,500 bbls/d in Q4 2022, due to increased production volumes[71] - Total production volumes for E&P Canada decreased to 45.3 mbbls/d in Q4 2023 from 49.1 mbbls/d in Q4 2022, primarily due to natural declines[92] - Total upstream production for Q4 2023 was 808.1 mboe/d, a 17% increase from Q3 2023's 690.5 mboe/d[158] - Total E&P sales volumes were 29.2 mboe/d in Q4 2023, significantly lower than 75.1 mboe/d in Q4 2022, due to decreased production and inventory build[94] Costs and Expenses - Total Oil Sands operating expenses decreased in Q4 2023, primarily due to lower commodity costs and decreased share-based compensation expenses[75] - Oil Sands operations cash operating costs per barrel increased to $30.80 in Q4 2023 from $28.35 in Q4 2022, primarily due to a higher proportion of Fort Hills bitumen directed to upgrading and lower excess power revenues[83] - Fort Hills cash operating costs per barrel decreased to $28.10 in Q4 2023 from $37.10 in Q4 2022, attributed to higher production volumes and lower natural gas prices[83] - Syncrude cash operating costs per barrel decreased to $33.85 in Q4 2023 from $34.60 in Q4 2022, mainly due to lower natural gas prices[83] - On a LIFO basis, refining and marketing gross margin decreased to $47.05/bbl in Q4 2023 from $69.40/bbl in Q4 2022, primarily due to lower benchmark crack spreads[111] - On a FIFO basis, refining and marketing gross margin decreased to $37.45/bbl in Q4 2023 from $59.30/bbl in Q4 2022, with a loss of $431 million on the decrease in crude oil benchmarks[111] Capital Expenditures and Investments - Capital expenditures for Q4 2023 totaled $1.482 billion, up from $1.258 billion in Q4 2022, driven by increased economic investments in various projects[122] - Oil Sands Base capital expenditures were $553 million in Q4 2023, focused on planned turnaround activities and low-carbon power cogeneration investments[124] - Syncrude capital expenditures were $244 million in Q4 2023, primarily for maintenance activities and the Mildred Lake West Extension mining project[127] - E&P capital and exploration expenditures were $152 million in Q4 2023, focused on the West White Rose Project and Terra Nova Asset Life Extension Project[128] - R&M capital expenditures were $304 million in Q4 2023, primarily for maintenance and enhancing retail operations[129] - Corporate capital expenditures were $18 million in Q4 2023, directed towards digital technologies[130] Debt and Equity - Net debt as of December 31, 2023, was $13.678 billion, an increase from $12.995 billion at September 30, 2023[147] - Total debt to total debt plus shareholders' equity was 26.3% as of December 31, 2023, down from 28.4% in 2022[143] - Shareholders' equity increased to $43,279 million at the end of 2023, up from $39,367 million in 2022[175] - The company reported a decrease in current liabilities from $12,869 million in 2022 to $9,597 million in 2023, indicating improved liquidity[219] - The company repurchased 51,982 thousand common shares in 2023 at a weighted average price of $42.96 per share, totaling $2.233 billion[153] Future Outlook - The company anticipates significant planned maintenance at Syncrude in Q1 2024, impacting 2024 guidance[84] - The company plans to fund its 2024 capital spending program of $6.3 billion to $6.5 billion through various capital resources[134] - Forward-looking statements indicate expectations for improved production rates and strategic growth initiatives in the upcoming fiscal periods[205] - The company expects production at the Terra Nova asset to ramp up in early 2024, contributing to overall production levels[1] Dividends and Shareholder Returns - The company declared a dividend of $0.55 per common share for Q4 2023, an increase from $0.52 in Q3 2023[158] - Cash dividends for Q4 2023 were $0.55 per share, up from $0.52 in Q4 2022, reflecting a commitment to returning value to shareholders[217] - The company paid dividends on common shares totaling $2,749 million in 2023, compared to $2,596 million in 2022, marking an increase of 5.9%[222]

Operator Sure. IÂ'll make a couple of comments, and then if Peter wants to add on to it. I think, 1 of the things, we now have such a concentration of assets in the mining world, things that sound fairly simple, but like fleet deployment. We have a higher percentage of smaller leased trucks at Fort Hills, and I described in my comments kind of the strategy of fewer bigger. So our ability to optimize things as simple as where heavy equipment goes is an opportunity for improvement. Okay, operator why donÂ't y ...

Published November 8, 2023 Innovation and responsible growth Market capitalization Q3 2023 $61B Refining capacity 466 mbpd 3 (C$ billion) $0 $5 $10 $15 $20 $65 $79 $95 AFFO ~$5/share TTM2 AFFO (less sustaining capital3 & dividends4) ~$6B Sustaining capital3 + dividend4 WTI ($USD) $ 1.1 $ 1.8 $ 4.1 $ 2.8 2026-30 2031-35 2036-40 2041-51 Manageable debt maturity profile6 (C$ billion – as of September 30, 2023) Additional short-term debt of $2.5B Annual AFFO Allocation Dividend3 Adjusted funds from operations S ...