Investor Information SUPPLEMENTAL - Published May 3, 2021 - Suncor
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SUNCOR ENERGY Investor Information SUPPLEMENTAL Published May 3, 2021 SUNCOR ENERGY
Table of Contents 1. Energy Sources 2. Processing, Infrastructure & Logistics 3. Consumer Channels 4. Sustainability 5. Technology Development 6. Integrated Model Calculation 7. Glossary SUNCOR ENERGY 2
SUNCOR ENERGY
Appendix
Energy
Sources
3
202003-038
Oil Sands Energy Sources
*All values net to Suncor
In Situ Mining
Firebag Base Plant
215,000 bpd capacity 350,000 bpd capacity
Suncor WI 100% Suncor WI 100%
2,743 mmbbls 2P reserves1 1,246 mmbbls 2P reserves1
Note: Millennium and North Steepank Mines
do not supply full 350,000 bpd of capacity
as significant in-situ volumes are sent
through Base Plant
MacKay River Syncrude
38,000 bpd capacity Syncrude operated
Suncor WI 100% 205,600 bpd net coking capacity
497 mmbbls 2P reserves1 Suncor WI 58.74%
1,160 mmbbls 2P reserves1
Future opportunities Fort Hills
ES-SAGD Firebag Expansion Suncor operated
Lewis (SU WI 100%) 105,000 bpd net capacity
Meadow Creek (SU WI 75%) Suncor WI 54.11%
1,418 mmbbls 2P reserves1
First oil achieved in January 2018
SUNCOR ENERGY 1 See Slide Notes and Advisories. 4
Regional synergy opportunities1 for existing assets
Crude logistics
Upgrader feedstock optionality from multiple oil sands assets
Crude feedstock optionality for Edmonton refinery
Supply chain
Sparing, warehousing & supply chain management
Consolidation of regional contracts
(lodging, busing, flights, etc.)
Operational optimizations
Unplanned outage impact mitigations Situ
In Situ
Turnaround planning optimization
Process and technology sharing
100% WI
Joint ownership
Base mine upgrader and terminal
U Syncrude upgrader
Assets and resource developments C In situ central processing facility
Lease development and asset utilization optimization P Fort Hills primary/secondary extraction
Pipelines
SUNCOR ENERGY 1 See Slide Notes and Advisories 5
Long life, low decline reserves base
Typical attributes1 of North American oil plays
Initial Decline Sustaining Operating Reservoir Recovery
Illustrative annual FFO2 profiles3 capital rate costs cost risk factor
Mining High Very low Low Medium Very low Very high
~90% of Suncor’s 2021
production guidance
In Situ Medium Low Low Low Low High
Offshore
~10% of Suncor’s 2021 High Medium Medium Very low Medium Medium
production guidance
Tight Oil Low Very high High Medium High Low
50 Years
Beneficial attribute Challenging attribute
SUNCOR ENERGY 1, 2, 3 See Slide Notes and Advisories 6
Offshore with ~300 million barrels of 2P reserves1
East Coast Canada North Sea
Hibernia
ExxonMobil operated Buzzard (UK)
Suncor working interest 20% CNOOC Petroleum Europe Limited operated
73 mmboe 2P reserves1 (Suncor WI) Suncor working interest 29.9%
2020 avg net production: 23.2 mbbls/d 60 mmboe 2P reserves1 (Suncor WI)
2020 avg net production: 25.9 mboe/d
Hebron
ExxonMobil operated
Suncor working interest 21.0% Golden Eagle (UK)
113 mmboe 2P reserves1 (Suncor WI)
CNOOC Petroleum Europe Limited operated
2020 avg net production: 29.7 mbbls/d
Suncor working interest 26.7%
12 mmboe 2P reserves1 (Suncor WI)
2020 avg net production: 7.8 mboe/d
Terra Nova Divestiture announced - effective Jan 1, 2021
Suncor Energy operated
Suncor working interest 37.7%
19 mmboe 2P reserves1 (Suncor WI)
Oda (Norway)
2020 avg net production: 0 mbbls/d
Spirit Energy operated3
Suncor working interest 30%
3 mmboe 2P reserves1 (Suncor WI)
White Rose First oil achieved March 2019
Cenovus operated 2020 avg net production: 7.5 mboe/d
Suncor working interest 27.5%2
4 mmboe 2P reserves1 (Suncor WI)
2020 avg net production: 6.7 mbbls/d
SUNCOR ENERGY 1, 2, 3 See Slide Notes and Advisories 7
E&P – Investing in high value, low risk projects
Recent performance Sanctioned projects1
mboe/d Fenja (Norway)
120 • 17.5% working interest
Oda • 6 mbbls/d anticipated net peak production
100 Hebron
White Rose
80
Hibernia
Buzzard Phase 2 (UK)
60 Terra Nova • 29.9% working interest
Golden Eagle • Production anticipated to offset natural declines
40 Buzzard
20 West White Rose Project4 (ECC5)
• ~26% working interest
0
2012 2013 2014 2015 2016 2017 2018 2019 2020
• 20 mbbls/d anticipated net peak production
$billions Terra Nova Asset Life Extension4 (ECC5)
2.5 112 109
99 • 37.7% working interest
• Extend asset life by approximately a decade
2.0
• Expect to produce additional 30 million barrels
64 (Suncor WI)
1.5 71 FFO2
Free funds flow3
54 Capital spend
52
1.0 44 42 Brent ($US/bbl) Future opportunities
0.5
• Rosebank – UK (40% Suncor WI)
• Near field developments including subsea
-
tie-backs, field extensions and infill drilling
2012 2013 2014 2015 2016 2017 2018 2019 2020
SUNCOR ENERGY 1, 2, 3, 4 See Slide Notes and Advisories 8
Power Generation
Generating power for internal use & sale to the grid, including EV
applications; currently 5th largest power producer in Alberta.
2,400
MW
1,400
MW
CURRENT CURRENT + SANCTIONED PROJECTS1
Cogen: 96%; Renewables: 4% (online by YE 2025)
Cogen: 89%; Renewables: 11%
MW Working interest nameplate capacity
Net capacity for grid export
Net internal consumption
SUNCOR ENERGY 1 See Slide Notes and Advisories. 9
SUNCOR ENERGY
Appendix
Processing,
Infrastructure &
Logistics
10
202003-038Operations & 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 PROPOSED PIPELINES3
SUNCOR ENERGY 1, 2, 3 See Slide Notes & Advisories 11Upgrading
Upgrading processes heavy bitumen into a
lighter, higher value product with a density Upgrading Process
similar to that of WTI.
LOW
Once upgraded, the product can flow on a VALUE
Mined & In-Situ Bitumen
HEAVY
pipeline without the addition of diluent. OIL (10° API)
Total Suncor Net
Upgrading Capacity: ~555 kbpd1
Coking, hydroconversion,
• Base Plant thermal cracking &/or
~15 – 20% yield loss
– 2 Upgrading Units hydrocracking
through upgrading process
• U1: 110 kbpd
• U2: 240 kbpd
– Produces sour & sweet SCO & diesel
HIGH Sour Synthetic Crude Oil Optional: Hydrotreating
• Syncrude (Gross values below – Suncor WI 58.74%) VALUE (30 - 35° API) (remove sulfur)
LIGHT
– 3 Upgrading Units OIL
• U1: 100 kbpd
• U2: 100 kbpd
• U3: 150 kbpd Sweet Synthetic Crude Oil
Refinery
– Produces sweet SCO (30 - 35° API)
• Edmonton Refinery
– 30 kbpd coking capacity
SUNCOR ENERGY 1 See Slide Notes & Advisories 12Suncor’s proven oil sands reliability journey
Suncor Base Plant upgrader reliability
Multi-year journey to reach >90% reliability
91% 90%
1 91% 90%
2
90%
86%
83% Firebag to
81% Base Mine
79% interconnect
pipeline fully
operational
Suncor began focusing on upgrader reliability initiatives in 2011
Culture – Operational excellence mindset
Process – Integrated maintenance strategy/approach
Infrastructure – Asset integration between Firebag and Base Plant
2012 2013 2014 2015 2016 2017 2018 2019 2020
Syncrude plant reliability In 2019, Syncrude achieved 2nd best
annual production in asset’s history
A similar multi year journey targeting >90% reliability 3
with 85% utilization4
2016/17 2018/19 >2021 (Target >90% reliability)
Collaboration Culture Infrastructure
Suncor’s active involvement in 31 technical/management Two bi-directional pipelines connecting Syncrude & Suncor’s Base Plant
Syncrude’s reliability secondees from Suncor sharing
improvement plan operational discipline learnings Better utilization of existing assets:
• Normal operations - Transfer of sour synthetic and bitumen between assets
• Planned and unplanned outages - Asset and production optimizations
Sharing technical & reliability Process synergies
best practices and support to Leveraging service & materials Construction completed and in-service in Q4 2020
improve productivity, reliability economies of scale
and reduce costs Maintenance planning & execution
coordination
SUNCOR ENERGY 1, 2, 3, 4 See Slide Notes & Advisories 13Market Access
Suncor has made strategic investments in refineries and current/proposed
logistics infrastructure to mitigate Alberta egress limitations & market disconnects
Fort McMurray ~750 Alberta
egress bottleneck
does not impact
the ability to move
Suncor barrels1
146 Edmonton
Hardisty Enbridge Line 3
Potential Markets
Regina Central & Eastern
Vancouver Cromer Canada, US Midwest
& Gulf Coast
137
Montreal
TMEP Potential Superior
Markets
Asia & California 85
Sarnia
Steele City Chicago
98
Commerce
Patoka
City
San Francisco
Cushing
Los Angeles
Pipelines
(current and forecasted gross capacity2)
Feeder lines
Houston/Texas City Trans Mountain Pipeline, TMPL (300 mbpd)2
Suncor refinery capacity
mbpd Trans Mountain Expansion , TMEP – Proposed3 (+590 mbpd)2
Industry approximate rail Express, Platte and Rocky Mountain (280 mbpd)2
mbpd loading capacity in TransCanada Keystone (590 mbpd)2
AB/SK
Enbridge Mainline (2,600 mbpd)2
Enbridge Line 3 – Proposed3 (+370 mbpd) 2
Enbridge Line 9 (300 mbpd)2
Flanagan South Pipeline (585 mbpd)2
Marine opportunities
SUNCOR ENERGY 1, 2, 3 See Slide Notes & Advisories 14SUNCOR ENERGY
Appendix
Consumer
Channels
15
202003-038Refined Product Markets
~500 mbpd
Product sales in
20201 Edmonton
refinery services
region from BC
to Ontario
20% Montreal and
Sarnia have a
local market
Canadian reach over 22mm
Export
consumer fuel capability
people5
market2 to US
Pacific NW
~315
Wholesale Cardlock
Locations3 Commerce
City’s asphalt Commerce City is
market only refinery in
stretches into Colorado & largest
Utah & Nevada 44 owned
refinery in the US
~1,560 retail
stations in Rockies
PetroCanada CO
retail sites4
~50%
North American
retail sites Suncor
owned
SUNCOR ENERGY 1, 2, 3, 4, 5 See Slide Notes & Advisories 16Refinery Feedstock & Products1
2020 refinery feedstock 2020 refined products
(~40% equity feedstock & ~100% inland crude)
1%
4% 6%
8% 10% 5% 5% 6%
8%
14%
10% 10%
20% 6%
37% 30%
59% 50%
52%
37%
34% 42%
76%
37%
21%
36%
22%
28%
48% 46%
42% 42%
4% 34% 35%
24% 22%
16%
12%
Montreal Sarnia Edmonton Denver Total Montreal Sarnia Edmonton Denver Total
Heavy Sour Sweet Other Feedstock Asphalt
Other (Bunker, Chemicals, LPGs, etc.)
Distillates (Diesel & Jet Fuel)
Gasoline
SUNCOR ENERGY 1 See Slide Notes & Advisories 17Refinery Characteristics
Throughput Nelson %OS Crude
Refinery Capacity Complexity Processing Key Markets Feedstock Advantages Product Advantages
(mbpd) 1 Index Rating Ability
Western Directly connected to oil sands production; ability Large market reach with international export capability via
Edmonton 146 9.8 100%
Canada to process multiple crude types. tidewater; in-line product blending minimizes inventory.
Integrated with Montreal refinery to supply large local market
Tied into western market for oil sands crude; crude
GTA & in the surrounding area; Sarnia refinery has a partial
Sarnia 85 10.8 80% source flexibility between mid-west and oil sands
Midwest USA ownership in refined products pipeline to the Greater Toronto
crude.
Area; direct access to international waters.
Large tanks storage capacities for crude and finished products;
access to large domestic markets through pipelines, rail and
Strong feedstock optionality with access to Western
Montreal & trucking; ability to optimize feedstock to Montreal and Sarnia
Montreal 137 9 30% Canadian, US, and tidewater crudes via pipeline, rail
GTA refineries as well as products to Ontario and Quebec; synergy
and marine.
with Parachem (chemicals market) and access to international
waters.
Bulk of crude from Colorado and local basins
Commerce Supplies 1/3 of jet fuel used at Denver International Airport via
resulting in transportation and pricing advantages;
City 98 7 20% Colorado direct pipeline; Colorado's largest producer & supplier of
optionality for North Dakota, Wyoming, Montana &
(Denver) paving-grade asphalt.
Western Canadian crude.
OS = Oil Sands
GTA = Greater Toronto Area
SUNCOR ENERGY 1 See Slide Notes & Advisories 18Refining & Marketing
R&M funds from operations1 Refinery utilization vs. US average
Capturing the value at all differentials Percent of refining capacity
FFO1 ($C billions) WTI – WCS ($US/bbl) Suncor US Average2
Full turnaround at
$4 $28 100% the Edmonton
refinery Q2 2018
$3 $21
90%
$2 $14
80%
$1 $7
US$/Cdn$
FX > $0.90
(2012 – 2014)
$0 $0 70%
2012 2013 2014 2015 2016 2017 2018 2019 2020 2012 2013 2014 2015 2016 2017 2018 2019 2020
SUNCOR ENERGY 1, 2 See Slide Notes & Advisories 19Suncor 5-2-2-1 Index
To help investors and analysts model Suncor’s Refining and Marketing (R&M) business, we have designed an indicative
5-2-2-1 gross margin based on publicly available pricing data. This is a single value that incorporates refining, product
supply and rack forward businesses, but excludes the impact of first-in, first-out (FIFO) accounting.
Q1 2019 Example
Gross Margin WTI + NYH 2-1-1 73.15 40% 29.26
= Product Value – Crude Value WTI + Chicago 2-1-1 70.25 40% 28.10
WTI 54.9 20% 10.98
Product Value Seasonal Factor 6.50
Product Value ($US/bbl) 74.85
= NYH 2-1-1 (40%) + Chicago 2-1-1 (40%) + WTI (20%) + Seasonal Factor
SYN 52.6 40% 21.04
WCS 42.5 40% 17.00
Crude Value WTI 54.9 20% 10.98
= SYN (40%) + WCS (40%) + WTI (20%) Crude Value ($US/bbl) 49.00
Gross Margin ($US/bbl) 25.85
FX ($US/$C) 0.75
New York Harbor (NYH) 2-1-1 & Chicago 2-1-1 Average Refinery Production (mbbls) 44,000
1
These regional benchmark cracking margins are indicative of Gross Margin excl-FIFO ($C millions) 1,515
Suncor’s western and eastern refining margins. Each 2-1-1 formula
represents the spread between 2 barrels of WTI crude oil and 1 Edmonton
barrel each of gasoline and ULSD. WTI is added to cracking Turnaround
margins to represent full product value.
Seasonal Factor
An estimate of USD $6.50/bbl in Q1/Q4 and USD $5.00/bbl in
Q2/Q3 reflect the grade quality and location spreads for refined
products sold in the company’s core markets during the winter and
summer months, respectively.
WTI = West Texas Intermediate crude oil at Cushing
SYN = Sweet Synthetic crude at Edmonton
WCS = Western Canadian Select at Hardisty
(CAD millions)
SUNCOR ENERGY 1 See Slide Notes & Advisories 20R&M gross margin calculation example – Q1 2019
FIFO1 impact calculation example – Q1 2019
Q4 2018 Q1 2019
Dec-18 49.00 70% 34.30 Dec-19 58.15 70% 40.71
WTI ($US/bbl) 60% 30.79 60% 34.32
Nov-18 56.70 30% 17.01 Nov-19 55.00 30% 16.50
Dec-18 6.00 70% 4.20 Dec-19 48.20 70% 33.74
WCS ($US/bbl) 20% 1.50 20% 9.47 Q1 2019 vs. Q4 2018
Nov-18 11.05 30% 3.32 Nov-19 45.35 30% 13.61
SYN ($US/bbl)
Dec-18 17.70 70% 12.39
20% 4.52
Dec-19 58.30 70% 40.81
20% 11.45
FIFO gain of
Nov-18 34.10 30% 10.23 Nov-19 54.80 30% 16.44 US$460M/C$615M
Average inventory cost/bbl 36.81 55.24
Inventory barrels1(mmbbls) 25 25
Inventory Value ($US) 920 1,381
Realized GM/bbl vs. NYH 2-1-1 benchmark – Q1 2019 49.65
All Suncor refineries
35.25
25.39
19.10
NYH
NYH 2-1-1
2-1-1 C$
US$
Benchmark Benchmark Crude Product mix, location Realized FIFO impact Realized
crack crack differential differential & other GM (LIFO) GM (FIFO)
SUNCOR ENERGY 1 See Slide Notes & Advisories 21First-in, first-out (FIFO) inventory gains and losses
Crude & products inventory & timing
The amount of time between purchase of feedstock to sale of refined product has direct correlation to FIFO impact
Edmonton
Commerce City
Montreal / Sarnia
45
Average (~ 1.5 months)
Average number of days
Crude logistics time1 – Time between purchase of feedstock to receipt at refinery gate in inventory across
Products storage time1 – Time between product processed and shipment beyond refinery gate refineries1
*Transit & storage time will vary depending on market & operating conditions
Composition of average inventory barrel FIFO impact
Illustration of how to calculate prices used for FIFO impact Key rules of thumb
Commodity mix in inventory1 The change in inventory value each quarter
indicates the magnitude of the FIFO impact
Prior reporting Current reporting
quarter price quarter price
A decrease in inventory value reflects a loss
WTI (~60%)
70% 70% Associated with a decreasing business environment
last month of the last month of the
quarter price quarter price
An increase in inventory value reflects a gain
WCS (~20%) Associated with an increasing business environment
30% 30%
Middle month of the SYN (~20%) Middle month of the
quarter price quarter price
SUNCOR ENERGY 1 See Slide Notes & Advisories 22SUNCOR ENERGY
Appendix
Sustainability
23
202003-038Water Stewardship
Our water use is guided by three principles
Conserve Reuse & recycle Return clean water to watershed
Corporate fresh water consumption intensity (m3/m3 production)2
0.90
0.82 0.86
1 0.74
Impact of 2016 Fort Hills
wildfires ramp-up
0.46
Oil Sands MacKay
Firebag
Base Plant River Base Plant optimization
& sale of lubricants business
92% 96% 100%
2015 2016 2017 2018 2019
Water technology highlights3
Water Technology Development Centre High Temperature Reverse Osmosis Non-aqueous extraction
$145M collaboration at Firebag to accelerate Project to develop treatment membranes that New solvent technologies in mining could
wastewater treatment technologies. could reduce the infrastructure & energy reduce or eliminate the need for water and
2019 JWN Energy Excellence required for SAGD4 water treatment tailings ponds and reduce GHG intensity
Awards winner.
SUNCOR ENERGY 1, 2, 3, 4 See Slide Notes & Advisories 24Tailings Management Tailings Composition
With the growth of Oil Sands Base operations, the volume of fluid
tailings has increased over time fines/clay 3%
Previous fluid tailings treatment methods kept volumes stable & water
allowed us to reclaim a tailings pond & make another one trafficable 76% sand
20%
PASS1 is a step-change to treat all fluid tailings by 2043
Base Plant Tailings Treatment Profile2 bitumen 50%2
Oil sands reclaimed
400
Stability
(treatment = production) 1st tailings pond –
Wapisiw Lookout (2010)
200 2019 volume of tailings
2.3x treated vs. tailings
0
produced4
Commercially implemented in 2018, PASS technology is expected to treat >50% of tailings volumes,
fast-tracking reclamation, reducing our environmental footprint & lowering costs2
SUNCOR ENERGY 1, 2, 3, 4 See Slide Notes and Advisories 24Personal & Process Safety
Positive trends in process safety, continued focus on personal safety
Loss of Primary Containment (LOPC) Recordable Injury Frequency (RIF1)
Tier 1 and Tier 2 process safety events Injuries per 200,000 hours worked
200 0.6
150
0.4
100
0.2
50
0 0
2015 2016 2017 2018 2019 2015 2016 2017 2018 2019
Suncor and contractor RIF 5-year trend
LOPC 80% decline in process safety events over the last 5
years (180 to 38)
Lost Time Injury Frequency (LTIF2)
Injuries per 200,000 hours worked
RIF1, LTIF2 improving over time, but
0.06
2019 performance above trend
RIF performance decline led by hand injuries; mitigation 0.04
measures focused on root causes, corrective/preventive
action and communication of incident learnings
0.02
LTIF performance decline led by slips, trips and falls and
line of fire incidents; mitigation measures focused on safety
processes, PPE, mandatory traction aids, and hazard 0
assessment 2015 2016 2017 2018 2019
Suncor and contractor LTIF 5-year trend
SUNCOR ENERGY 1, 2 See Slide Notes & Advisories 26Indigenous & Community Relationships
We aim to increase Indigenous participation in energy development
Partner with businesses Improve workforce development Partner with youth
Spent with indigenous
$3.4B businesses since 2016 3.4
(cumulative spend)
East Tank Farm Deal 2.5
Partnership 1.6
$1B Canada’s largest Indigenous energy partnership
0.9
First Nations ownership
49% Fort McKay & Mikisew Cree First Nations
0.4
25 year Revenue stream
Supports community investment 2016 2017 2018 2019 2020
Suncor’s Adelaide Wind Farm 42
Petro-Canada Retail Stations
25% interest by Aamjiwnaang First Nation owned or leased by First Nations
(cumulative)
42
38
PetroNor
26 27
Suncor has 41% interest in James Bay Cree company 23
2001-2016 2017 2018 2019 2020
SUNCOR ENERGY 27SUNCOR ENERGY
Appendix
Technology
Development
28
202003-038New Technologies Realize Multiple Benefits1
Examples of potential current technologies to meet multiple objectives
across our business
Lower costs Lower GHGs Reduce water, tailings & land footprint
Next Generation SAGD2
Thermal solvent processes (Solvent Plus, EASE3/ESEIEH®4)
Steam-solvent technologies (ES-SAGD5)
IN SITU Steam & gas co-injection (NCG6)
Wellbore enhancements
Late Life SAGD2
Waterless extraction processes (NAE7)
MINING & Froth treatment technologies (PFT8)
EXTRACTION Tailings processes & wetland reclamation (PASS 9, DPL/EPL10)
Autonomous haul systems (AHS11)
REFINING & Partial upgrading (PURE12) / Integrated Bitumen to Diesel
UPGRADING Renewable fuels & diluent
CORPORATE Data analytics/artificial intelligence
SUNCOR ENERGY 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12 See Slide Notes and Advisories 29Leading Deployment of Mining Technologies
Fort Hills - Higher quality, fungible product Autonomous Haul Systems (AHS)
Paraffinic Froth Treatment in secondary extraction ✓ Greater reliability, efficiency & productivity
Bitumen froth mixed with solvents to remove water and minerals Designed to run 24/7 with no ‘breaks’
✓ Lower costs
~$1/bbl opex savings1
✓ Safer operations
Shipped
Minimizes human interface in the mine, obstacle detection
>75% bitumen directly to
market
~10% asphaltenes
2% water & sediment
mine pit Fort Hills Mine
Status: deployed Q4 2020
Number of Trucks: ~50
✓ Partially upgraded
Higher value due to reduced asphaltenes content Millennium Mine
Status: deployment schedule ~2023 - 2025
✓ Lower GHG emissions Number of Trucks: ~100
In line with the average crude refined in the U.S.
✓ Less diluent required
~20% diluent mix vs. ~30% for in situ barrel transportation
✓ Fungible product
Meets pipeline, refinery specifications, no further upgrading
SUNCOR ENERGY 1, 2 See Slide Notes & Advisories 30New Cogeneration Facility Sanctioning1
Heat required for
mining operations
Economically Robust
HIGH
%
TEEN
IRR2 independent of oil price & pipeline egress
Natural gas
INPUTS
Water
$1.4B Capital investment over 4 years
Increase revenue from power sales
0
Lower sustaining capital by replacing aging asset
Sustainably Minded
Annual emission reductions3
2.5MT ~25% progress toward GHG goal
Electricity Steam
Vehicle emissions equivalent4
OUTPUTS
550K ~15% of Alberta’s vehicles5
Low-carbon power sold to grid,
displacing coal fired power Technologically Progressive
Power Low-carbon power added to Alberta grid
consumed
by retail 800MW Displacing higher intensity coal power
& wholesale
customers
SUNCOR ENERGY 1, 2, 3, 4, 5 See Slide Notes & Advisories 31SUNCOR ENERGY
Appendix Model
Integrated
Calculation
32
202003-038Integrated 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 INFRASTRUCTURE CONSUMER
ENERGY
SOURCES4 & LOGISTICS5 CHANNELS6
SOURCES3
Sale of Refining hydrocarbons into
Sale of unprocessed Processing & using extensive
infrastructure, logistics & trading consumer products & marketing
unprocessed energy products,
to optimize product movement to wholesale & retail consumers
energy products majority at US
at Brent pricing to across value chain
Gulf Coast
global markets heavy pricing
P H Y S I C A L I N T E G R A T I O N S T R A T E G Y
Agile & informed model to capture margin by processing & moving energy across the value chain
SUNCOR ENERGY 1, 2, 3, 4, 5, 6 See Slide Notes & Advisories 33500
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
Upgrading bitumen to ~1/3 margin from
higher value product physical integration,
marketing & logistics
300 315 $90.00
kbpd $89
Globally priced per bbl
$36
offshore production per bbl
200
$69 $53 $60.00
per bbl per bbl Minimizing $62 $25
exposure to low per bbl per bbl
value bitumen
138 $43 $18
$53/bbl
100 per bbl per bbl $30.00
kbpd
104
$37/bbl
kbpd Majority
$25/bbl
sold at
US Gulf
$16/bbl
Coast at
global
heavy
pricing
0 $-
OFFSHORE SALES BITUMEN SALES SYNTHETIC CRUDE OIL REFINED PRODUCT
to market to market SALES SALES
to market to market
MA J O R IT Y O F P H Y S IC A L L Y IN T E G R A T E D V O L U ME S
SUNCOR ENERGY 1, 2 See Slide Notes & Advisories 34Corporate Summary Calculation1
2019 / 2020 Average Funds from Operations (FFO)2 Breakdown ($CAD)
Volume Margin FFO
(kbpd) ($/bbl) ($M)
Offshore E&P 104.3 52.61 1,998
Bitumen 137.7 17.61 857
SCO 315.4 24.86 2,867
Refined products 455.7 35.95 6,034
Total operating gross margin 11,770
Income Taxes (447)
Corporate adjusted items:
FIFO gain (loss) 52
Intersegment profit (eliminated) realized (75)
Corp segment FFO (adjusted to pre-tax) (1,343)
Other revenue (costs) - net (2,096)
Exploration, reclamation & financing expense (655)
Other (non-cash addbacks) 154
Consolidated Suncor Funds Flow from Operations 7,347
Reported Funds Flow from Operations (avg of 2019-20) 7,347
SUNCOR ENERGY 1, 2 See Slide Notes & Advisories 35Integrated Model – Volumes Calculation1
FY2020 FY2019 20/19 AVG SOURCE
VOLUMES (Sales) (mbbls/d)
a E&P 102.6 106.0 104.3 Q4 2020 Report P65
Bitumen
b OSO 67.5 102.2 84.9 Q4 2020 Report P63
c FH 58.1 85.3 71.7 Q4 2020 Report P63
SCO
d OSO 304.8 311.3 308.1 Q4 2020 Report P63
e Syncrude 163.1 172.3 167.7 Q4 2020 Report P63
Equity Volumes Sent to Refiners
f Equity crude 168.4 190.0 179.2 2019 AIF P21; 2020 Actuals.
g Bitumen % 5% 15% 10%
h SCO 159.2 161.5 160.4
i Bitumen 9.2 28.5 18.9
VOLUMES (Sales to Market - excluding internal transfers)
j E&P 102.6 106.0 104.3
k Bitumen 116.4 159.0 137.7
l SCO 308.7 322.1 315.4
m Refining 435.6 475.9 455.7 Q4 2020 Report P72
SUNCOR ENERGY 1 See Slide Notes & Advisories 36Integrated Model – Margin Calculation1
MARGIN / BBL ($CAD) FY2020 FY2019 20/19 AVG SOURCE
E&P (Brent pricing)
n Average price realized 52.57 85.54 69.46
o Royalties (2.52) (7.64) (5.14)
Q4 2020 Report P65
p Transportation costs (2.64) (1.94) (2.28)
q Operating costs (8.45) (10.37) (9.43)
r Margin 38.96 65.60 52.61 = Average price realized + royalties + transportation + operating costs (n + o + p + q)
Bitumen (majority Maya pricing)
s Average price realized 28.44 52.05 42.58
t Royalties (0.32) (1.70) (1.15)
Q4 2020 Report P64
u Transportation costs (6.07) (6.34) (6.23)
v Operating costs (20.14) (15.88) (17.59)
w Margin 1.91 28.13 17.61 = Average price realized + royalties + transportation + operating costs (s + t + u + v)
SCO
x Average price realized 48.19 75.43 62.03
y Royalties (0.45) (4.49) (2.50)
Q4 2020 Report P64
z Transportation costs (4.36) (4.75) (4.56)
aa Operating costs (29.45) (30.76) (30.12)
ab Margin 13.93 35.43 24.86 = Average price realized + royalties + transportation + operating costs (x + y + z + aa)
Refined Product Sales
ac Average price realized 72.76 105.68 89.22
ad Feedstock cost (net of FIFO) (44.16) (68.92) (56.54) 5-2-2-1 Calculation
ae FX (US:CAD) 0.75 0.75 0.75
af WTI (US$/bbl) 39.40 57.05 48.23
Q4 2020 Report P15
ag WCS (US$/bbl) 26.85 44.25 35.55
ah SYN (US$/bbl) 36.25 56.45 46.35
ai R&M gross margin (inclusive of marketing & logistics activities) 4,029 7,008 5,519 Q4 2020 Report P72
aj Adj - FIFO gain (loss) (519) 623 52 2019 Annual Report P41; 2020 cumulative per quarterly report
ak R&M gross margin (LIFO) 4,548 6,385 5,466
al R&M gross margin/bbl (LIFO) 28.60 36.76 32.68
am Transportation costs (0.87) (0.69) (0.78)
an Operating costs (5.50) (5.35) (5.43) Q4 2020 Report P72
ao Value chain margin/bbl 5.13 13.71 9.47
ap R&M margin/bbl (incl. value chain margin) 27.37 44.42 35.95
SUNCOR ENERGY 1 See Slide Notes & Advisories 37Integrated Model – Funds from Operations Calculation1,2 Funds flow from operations model FY2020 FY2019 20/19 AVG SOURCE aq Brent sales 1,459 2,538 1,998 ar Bitumen (majority Maya) sales 81 1,633 857 as SCO sales 1,570 4,165 2,867 at Refined product sales 4,351 7,717 6,034 au Total operating gross margin 7,487 16,053 11,770 av Current income taxes 659 (1,552) (447) Q4 2020 Report P47 aw Add: Corporate adjusted items ax FIFO gain (loss) (519) 623 52 ay Intersegment profit (eliminated) realized 126 (276) (75) Q4 2020 Report P28 az Corp segment FFO (adjusted to pre-tax) (1 402) (1 285) (1,343) Q4 2020 Report P54 (FS) & P41 (FFO) ba Other revenue (costs) - net (2,077) (2,116) (2,096) bb Exploration, reclamation & financing expense ( 479) ( 830) (655) Q4 2020 Report P54 (FS) & P41 (FFO) bc Other (non-cash addbacks) 106 201 154 Q4 2020 Report P41 bd Consolidated Suncor funds from operations 3,875 10,818 7,347 be Reported funds from operations 3,875 10,818 7,347 -2.3 Other revenues and costs bh Reported OS + EP + RM segment revenues 12,072 21,292 12,072 Q4 2020 Report P54 bi Calculated revenues 11,503 20,186 15,845 bj Total Other revenues 569 1,106 837 bk Reported OS + EP + RM segment costs 11236 13740 13,740 Q4 2020 Report P54 bl Calculated costs 8,590 10,519 9,554 bm Total Other costs 2,646 3,221 2,934 Acronyms FS Financial Statements FFO Funds from (used in) Operations OS Oil Sands EP Exploration & Production RM Refining & Marketing Corporate Corporate & Eliminations SUNCOR ENERGY 1, 2 See Slide Notes & Advisories 38
SUNCOR ENERGY
Appendix
Glossary
39
202003-038Glossary1 Alkylate (Alkylation): A refining operation that takes low value derivatives from the catalytic cracking and other processes and unites them in the presence of an acid catalyst to produce a very high octane, low vapor pressure gasoline blending component. Aromatics: Hydrocarbons characterized by their uniform carbon ring structure and their often pleasant aroma. Commercial petroleum aromatics are benzene, toluene, and xylene. These three are often referred to by the acronym BTX. These chemicals are used as high octane components in gasoline. Aromatics have been judged to be undesirable in some finished motor fuels with various state and federal regulations geared toward reducing their levels. CARB diesel fuel in the state of California mandates a low aromatics composition. Asphalt: A dark-brown-to-black cement-like material containing bitumen as the predominant constituent obtained by petroleum processing, used primarily for road construction. It includes crude asphalt as well as the following finished products: cements, fluxes, the asphalt content of emulsions (exclusive of water), and petroleum distillates blended with asphalt to make cutback asphalts. Note: The conversion factor for asphalt is 5.5 barrels per short ton. Barrel: Term used as the standard measurement of volume for crude oil and large quantities of refined products in the petroleum industry. A unit of volume equal to 42 U.S. gallons – often abbreviated as bbl. Benchmark Crude: A widely accepted grade of crude oil used as a standard in trading. Other grades would be traded at a price differential according to the quality differences. Examples would be WTI, Brent, Dubai and Arab Light. Brent: Blend of crude oil from a critical group of North Sea fields, Brent is the standard contract for ICE crude oil futures trading, and the most commonly referenced crude in Europe. It’s described as the European counterpart of WTI, and its morning performance is often a harbinger for the NYMEX opening. London’s ICE Brent contract is the benchmark crude for international oil physical and futures trading. Catalytic Cracking: The refining process of breaking down, via heat and pressure, the larger, heavier, and more complex hydrocarbon molecules into simpler and lighter molecules, primarily gasoline. Catalytic cracking is accomplished by the use of a catalytic agent and is an effective process for increasing the yield of gasoline from crude oil. Coker: An oil refining unit in which heavy feed such as flasher bottoms, cycle oil from a fluid catalytic cracker, or thermal cracked gas oil is subjected to high temperatures. This causes the feed to crack, creating lights oils. Coke – solid, densely packed carbons – builds up in the reactors of the unit and periodically needs to be removed. Crack Spread: Term applied to the differential between what a typical refined products mix would yield, and the value of crude. The common crack spread features a per bbl reference derived of 66.6% unleaded gasoline and 33.4% No. 2 oil. The resulting average is compared to the WTI number for the resulting “crack spread.” Crack spreads of 3:2:1 use three parts gasoline, two parts of distillate to one part of crude. SUNCOR ENERGY 1 See Slide Notes. 40
Glossary1 (continued) Crude Distillation: An oil refinery unit that separates crude oil into different products according to their individual boiling point ranges. Distillation allows for the materials to be separated without being subjected to conditions that would cause cracking or decomposition. Delayed Coking: A process by which heavier crude oil fractions can be thermally decomposed under conditions of elevated temperatures and pressure to produce a mixture of lighter oils and petroleum coke. The light oils can be processed further in other refinery units to meet product specifications. The coke can be used either as a fuel or in other applications such as the manufacturing of steel or aluminum. Distillation: The most basic refining operation that heats the crude oil and condenses the cuts in a fractionating column in order to separate the various petroleum products for further processing. Feedstock: Any of the raw or semi-finished materials which move to the various units of a refinery or petrochemical plant. Crude is a feedstock, but the term is mainly used to describe raw materials after the distillation process which in turn go on to more sophisticated units at the refinery. VGO, naphtha, condensate and straight run residual fuel are commonly referred to as feedstocks. Gasoil (VGO): Commonly, the European term used for diesel fuel and heating oil. Hydrotreating: A refining unit whereby processed material from the crude units are treated in the presence of catalysts and hydrogen, often to remove sulfur and other unwanted substances. The hydrotreater is often the critical unit for producing jet fuel and low-sulfur diesel. Liquefied Petroleum Gases (LPG): A group of hydrocarbon-based gases derived from crude oil refining or natural gas stream fractionation that are often liquefied, through pressurization, for ease of transport. They include: ethane, propane, normal butane, and isobutane. Uses of these fuels include: home heating, industrial, automotive fuel, petrochemical feedstocks and for drying purposes in farming. Natural Gas (NG): A naturally-occurring raw material often produced in conjunction with crude oil that is processed through a variety of facilities to yield natural gas liquids. It is a commercially acceptable product for industrial and residential consumption and is shipped via pipeline. Petrochemical: An intermediate product derived from crude and natural gas processing that is used in production of a wide range of products, including plastics. Also the facility that processes these intermediate products. Petrochemical plants are often integrated with major refineries. Rack Market: Petroleum products sold at the wholesale level from primary storage. Refers to loading racks where tanker trucks fill up. SUNCOR ENERGY 1 See Slide Notes. 41
Glossary1 (continued) Reforming: An oil refining unit in which naphthas are changed chemically to increase their octane level. Paraffins convert to iso-paraffins and naphthenes, and naphthenes change to aromatics. The catalyst used is usually platinum, though sometimes palladium. Sour Crude Oil: Crude oil is considered ‘sour’ if it contains ≥ 0.5% sulfur. Spot Price: The current value of any product on a volume basis. Sulfur: A yellowish nonmetallic element, sometimes known as “brimstone.” It is naturally occurring at various levels of concentration in many fossil fuels whose combustion releases sulfur compounds that are considered harmful to the environment. Some of the most commonly used fossil fuels are categorized according to their sulfur content, with lower sulfur fuels usually selling at a higher price. Note: No. 2 Distillate fuel is currently reported as having either a 0.05% or lower sulfur level for on-highway vehicle use or a greater than 0.05% sulfur level for off-highway use, home heating oil, and commercial and industrial uses. This also includes Ultra Low Sulfur Diesel (
Advisories
Forward-Looking Statements – This presentation contains certain expected synergies and the ability to sustain reductions in costs; the measures are included because management uses the information to
“forward-looking statements” within the meaning of the United States ability to access external sources of debt and equity capital; the timing analyze business performance, leverage and liquidity and therefore
Private Securities Litigation Reform Act of 1995 and “forward-looking and the costs of well and pipeline construction; Suncor’s dependence may be considered useful information by investors. See the “Non-
information” within the meaning of applicable Canadian securities on pipeline capacity and other logistical constraints, which may affect GAAP Financial Measures Advisory” section of the Q1 MD&A.
legislation (collectively, “forward-looking statements”), including the company’s ability to distribute products to market; mandatory
statements about: Suncor’s strategy and business plans; expected production curtailments being greater or imposed for longer than Funds from operations (previously referred to as cash flow from
operating and financial results; reserves estimates and reserve life anticipated; the timely receipt of regulatory and other approvals; the operations) is defined in the Q1 MD&A, for the three months ended
indices; future opportunities in Oil Sands and regional synergy timing of sanction decisions and Board of Directors’ approval; the March 31, 2021 is reconciled to the GAAP measure in the Q1 MD&A,
opportunities for existing assets; expectations for sanctioned E&P availability and cost of labour, services, and infrastructure; the for 2012 to 2020 is reconciled to GAAP measures in Suncor’s annual
projects, including anticipated peak production; expected benefits satisfaction by third parties of their obligations to Suncor; the impact of management’s discussion and analysis (MD&A) for the respective
from sanctioned and identified power generation projects; nameplate royalty, tax, environmental and other laws or regulations or the year. Free funds flow (previously referred to as free cash flow) is
capacities; expected utilization of assets; expectations on refinery interpretations of such laws or regulations; applicable political and defined in the Q1 MD&A, and is reconciled, as applicable for 2019 to
feedstocks and refined products; potential future pipelines and market economic conditions; risks associated with existing and potential 2020 in the 2020 MD&A, for 2015 to 2018 to the GAAP measure in
access expectations; the assumption that Suncor's 5-2-2-1 index will future lawsuits and regulatory actions; improvements in performance Suncor’s 2018 annual MD&A, and for 2014 to the GAAP measure in
continue to be an appropriate measure against Suncor's actual of assets; and the timing and impact of technology development. Suncor’s 2016 annual MD&A; and the estimated impact of the LIFO
results; expectations for and potential benefits of the cogeneration method for the three months ended March 31, 2021 is defined and
facility, Suncor/Syncrude interconnecting pipelines, autonomous haul Although Suncor believes that the expectations represented by such reconciled in the Q1 MD&A.
trucks, PASS, paraffinic froth treatment, high temperature reverse forward-looking statements are reasonable, there can be no
osmosis and non-aqueous extractions; tailings treatment capacity; assurance that such expectations will prove to be correct. Suncor’s Reserves– Unless noted otherwise, reserves information presented
that the East Tank Farm deal will provide a twenty five year revenue Management’s Discussion & Analysis (MD&A) ended March 31, 2021 herein for Suncor is presented as Suncor’s working interest (operating
stream to the two Alberta First Nations; statements about Suncor’s and dated May 3, 2021 (the Q1 MD&A), Annual Report for the year and non-operating) before deduction of royalties, and without
investments in its lower-carbon technology portfolio and in ended December 31, 2020 (the 2020 Annual Report) and its most including any royalty interests of Suncor, and is at December 31,
technologies, including the expected benefits therefrom; potential recently filed Annual Information Form/Form 40-F and other 2020. For more information on Suncor’s reserves, including definitions
future free funds flow growth projects, including the timing and impact documents it files from time to time with securities regulatory of proved and probable reserves, Suncor’s interest, location of the
thereof, and free funds flow improvement and cash flow upside authorities describe the risks, uncertainties, material assumptions and reserves and the product types reasonably expected please see
potential; statements about Suncor’s GHG intensity reduction goal other factors that could influence actual results and such factors are Suncor’s most recent Annual Information Form dated February 24,
including the expected impact of sanctioned projects; expectations, incorporated herein by reference. Copies of these documents are 2021 available at www.sedar.com and Form 40-F dated February 25,
targets and potential opportunities with respect to Syncrude; capital available without charge from Suncor at 150 6th Avenue S.W., 2021 available at www.sec.gov. Reserves data is based upon
and production guidance; planned maintenance and the timing Calgary, Alberta T2P 3E3, by calling 1-800-558-9071, or by email evaluations conducted by independent qualified reserves evaluators
thereof; and goals with respect to reliability, safety, cost management request to invest@suncor.com or by referring to the company’s profile as defined in NI 51-101.
and sustainability, that are based on Suncor’s current expectations, on SEDAR at www.sedar.com or EDGAR at www.sec.gov. Except as
estimates, projections and assumptions that were made by Suncor in required by applicable securities laws, Suncor disclaims any intention BOE (Barrels of oil equivalent) – Certain natural gas volumes have
light of its experience and its perception of historical trends. Some of or obligation to publicly update or revise any forward-looking been converted to barrels of oil on the basis of six thousand cubic feet
the forward-looking statements may be identified by words such as statements, whether as a result of new information, future events or to one boe. This industry convention is not indicative of relative market
“planned”, “estimated”, “target”, “goal”, “illustrative”, “strategy”, otherwise. Suncor’s actual results may differ materially from those values, and thus may be misleading.
“expected”, “focused”, “opportunities”, “may”, “will”, “outlook”, expressed or implied by its forward-looking statements, so readers are
“anticipated”, “potential”, “guidance”, “predicts”, “aims”, “proposed”, cautioned not to place undue reliance on them. Impact of the COVID-19 Pandemic: The COVID-19 pandemic is an
“seeking” and similar expressions. Forward-looking statements are not evolving situation that will continue to have widespread implications
guarantees of future performance and involve a number of risks and Suncor’s corporate guidance includes a planned production range, for our business environment, operations and financial condition.
uncertainties, some that are similar to other oil and gas companies planned maintenance, capital expenditures and other information, Actions taken around the world to help mitigate the spread of COVID-
and some that are unique to Suncor. Users of this information are based on our current expectations, estimates, projections and 19 have and will continue to have significant disruption to business
cautioned that actual results may differ materially as a result of, assumptions (collectively, the Factors), including those outlined in our operations and a significant increase in economic uncertainty. Our
among other things, assumptions regarding: the current and potential 2021 Corporate Guidance available on www.suncor.com/guidance, operations and business are particularly sensitive to a reduction in the
adverse impacts of the COVID-19 pandemic; commodity prices and which Factors are incorporated herein by reference. Suncor includes demand for, and prices of, commodities that are closely linked to
interest and foreign exchange rates; the performance of assets and forward-looking statements to assist readers in understanding the Suncor’s financial performance, including crude oil, refined petroleum
equipment; capital efficiencies and cost savings; applicable las and company’s future plans and expectations and the use of such products (such as jet fuel and gasoline), natural gas and electricity.
government policies; future production rates; the development and information for other purposes may not be appropriate. The timing of an economic recovery is currently uncertain. This could
execution of projects; assumptions contained in or relevant to result in reduced utilization and/or the suspension of operations at
Suncor’s 2021 Corporate Guidance; product supply and demand; certain of our facilities, buyers of our products declaring force majeure
market competition; future production rates; assets and facilities not Non-GAAP Measures – Certain financial measures in this or bankruptcy, the unavailability of storage, and disruptions of pipeline
performing as anticipated; expected debottlenecks, cost reductions presentation – namely funds from operations, free funds flow, and last and other transportation systems for our products, which would further
and margin improvements not being achieved to the extent in, first out (LIFO) – are not prescribed by GAAP. All non-GAAP negatively impact Suncor’s production or refined product volumes,
anticipated; dividends declared and share repurchases; the sufficiency measures presented herein do not have any standardized meaning and could adversely impact our business, financial condition and
of budgeted capital expenditures in carrying out planned activities; and therefore are unlikely to be comparable to similar measures results of operations.
risks inherent in marketing operations (including credit risks); presented by other companies. Therefore, these non-GAAP measures
imprecision of reserves estimates and estimates of recoverable should not be considered in isolation or as a substitute for measures
quantities of oil, natural gas and liquids from Suncor’s properties; of performance prepared in accordance with GAAP. All non-GAAP
SUNCOR ENERGY 43Slide Notes
Slide 4------------------------------------------------------------- determined. The ALE project is currently being evaluated with all may not be reflective of actual utilization rates. See Forward-
(1) Reserves are working interest before royalties. See Reserves in the stakeholders to determine the best option to integrate and optimize Looking Statements and Impact of the COVID-19 Pandemic in the
Advisories. The estimates of reserves for individual properties potential funding to recover the remaining resources from the Terra Advisories.
provided herein may not reflect the same confidence level as Nova project. Slide 19-------------------------------------------------------------
estimates of reserves for all properties due to the effects of (5) Refers to East Coast Canada (ECC). (1) Funds from operations (FFO) is a non-GAAP financial measure and
aggregation. Suncor’s total 2P Reserves (gross) for Canada are is calculated as cash flow provided by operating activities excluding
7,064 mmboes at December 31, 2020. Slide 9------------------------------------------------------------- changes in non-cash working capital. See Non-GAAP Measures in
Slide 5------------------------------------------------------------- (1) Represents possible future opportunities currently being evaluated. the Advisories.
(1) Represents possible future opportunities currently being evaluated. There can be no assurance these opportunities will be pursued. See (2) Source: US Energy Information Administration
There can be no assurance these opportunities will be pursued. See Forward-Looking Statements in the Advisories. Slide 20------------------------------------------------------------
Forward-Looking Statements in the Advisories. Slide 11 -------------------------------------------------------------- (1) Average refinery production is based on the twelve months ended
Slide 6------------------------------------------------------------- (1) As at December 31, 2020 and assumes that approximately 7.04 billion March 31, 2019.
(1) Attributes are generalizations based on Suncor’s analysis of its own barrels of oil equivalent (boe) of proved and probable reserves (2P) are Slide 21-------------------------------------------------------------
projects and industry data. produced at a rate of 593.4 mboe/d, Suncor’s average daily production (1) Inventory barrels are an illustrative approximation and actual results
(2) Funds from operations (FFO) is a non-GAAP financial measure. See rate in 2020. Reserves are working interest before royalties. See will vary depending on market and operating conditions. See
Non-GAAP Measures in the Advisories. FFO is calculated as cash Reserves in the Advisories. Forward-Looking Statements in the Advisories.
flow provided by operating activities excluding changes in non-cash (2) 1,877 retail and wholesale sites are operated under the Petro-Canada Slide 22-------------------------------------------------------------
working capital. brand as of December 31, 2020. (1) Crude logistics time, products storage time, commodity mix in
(3) Annual FFO profiles are based on representative project economics (3) Proposed future pipelines. There can be no assurance this pipeline will inventory and average number of days in inventory are an illustrative
be built with the capacity indicated or at all. See Forward-looking
(development capital, operating and sustaining costs) using approximation and actual results will vary depending on market and
Statements in the Advisories.
consistent assumptions for future oil prices (including adjustments operating conditions. See Forward-Looking Statements and Impact
Slide 12-------------------------------------------------------------
for quality, transportation and marketing costs), tax and royalty of the COVID-19 Pandemic in the Advisories.
(1) Nameplate capacities as at December 31, 2020. Nameplate
rates. Actual FFO may differ materially. See Forward-Looking Slide 24------------------------------------------------------------
capacities may not be reflective of actual utilization rates. See
Statements in the Advisories. (1) Approximately 92% of the water used by our mining and extraction
Forward-Looking Statements and Impact of the COVID-19 Pandemic in
Slide 7----------------------------------------------------------- operations in 2019 was recycled tailings water. At our Firebag in situ
the Advisories.
(1) Reserves are working interest before royalties. See Reserves in the site, approximately 96% of the water used is recycled. The make-up
Slide 13----------------------------------------------------------
Advisories. The estimates of reserves for individual properties is drawn from recycled wastewater from our oil sands upgrading and
(1) Excludes the impact of operations being shut-in due to forest fires in
provided herein may not reflect the same confidence level as utilities operations, surface run-off water collected within the facility
the Fort McMurray region during the second quarter of 2016.
estimates of reserves for all properties due to the effects of (2) Excludes the impact of the planned major turnaround impact in boundary and from groundwater wells. At our MacKay River in situ
aggregation. Suncor’s 2P Reserves (gross) for total Canada, North facility, close to 100% of the water is recycled and MacKay River
2018.
Sea UK and Norway North Sea, respectively, are 7,273 mmboe and has zero liquid discharge. The majority of make-up water comes
(3) Targets based on current business plans and business environment
86 mmboe as at December 31, 2020. Sum of displayed 2P reserves from groundwater, most of which is too high in salt and mineral
expectations. Actual results may differ materially from these targets.
is 284 mmboe; remaining 2P reserves is displayed on slide 8 are See Forward-Looking Statements in the Advisories. content to be used for potable water or agriculture.
made of sanctioned projects. (2) Fresh water consumption intensity in 2016 was adversely impacted
(4) Syncrude utilization rates are calculated using intermediate sour
(2) Suncor’s 27.5% working interest is for the White Rose base project. by wildfires, which reduced the industrial water recycle rates and
production.
Suncor’s working interest in the White Rose growth lands is extended the Upgrader 2 unplanned turnaround by more than one
Slide 14-------------------------------------------------------------
26.125%. month. Fresh water consumption intensity in 2017 decreased due to
(1) Based on Suncor’s forecast of market access capacity available to
(3) Photo source: Norwegian Petroleum Directorate. the sale of our Lubricants business in Mississauga, Ontario on
industry and Suncor’s planned production profile. See Forward
Slide 8---------------------------------------------------------- February 1, 2017 and further optimization of the wastewater recycle
Looking Statements in the Advisories.
(1) Represents possible future opportunities currently being evaluated. rates at Oil Sands Base operations, including modifications and
(2) Approximate total pipeline capacities based on publicly sourced
There can be no assurance these opportunities will be pursued. improvements to the industrial wastewater system. Intensity
information available at www.capp.ca and www.enbridge.com
Actual peak production and anticipated recoveries may vary from increased in 2018 and 2019 due to the ramp up of the Fort Hills
(3) Proposed future pipeline. There can be no assurance this pipeline
those expected. See Forward-Looking Statements in the Advisories. project, which is building up water inventory for recycling.
will be built with the capacity indicated or at all. See Forward
(2) Funds from operations (FFO) is a non-GAAP financial measure. See (3) Actual results may differ materially. See Forward-Looking
Looking Statements in the Advisories.
Non-GAAP Measures in the Advisories. FFO is calculated as cash Statements in the Advisories.
Slide 16-------------------------------------------------------------
flow provided by operating activities excluding changes in non-cash (4) SAGD refers to steam assisted gravity drainage.
(1) 503.4mbbl/d refined products sales average for 2020.
working capital. Slide 25 --------------------------------------------------------------
(2) Based on Kent (a Kalibrate company) survey data for year-end
(3) Free funds flow is calculated by taking funds from operations (1) Refers to Permanent Aquatic Storage Structure (PASS).
2019.
(previously referred to as cash flow from operations) for E&P and (2) Based on current business plans, which are subject to change.
(3) 316 PETRO-PASS wholesale sites, as of December 31, 2020. Expected benefits of PASS may not be achieved. See Forward-
subtracting E&P capital and exploration expenditures, excluding
(4) 1561 retail sites are operated under the Petro-Canada brand. Looking Statements in the Advisories.
capitalized interest, all as indicated for the applicable year in (5) The Montreal and Sarnia refineries have a local reach of over 20
Suncor’s respective Annual Reports. Management uses free funds (3) Fluid tailings inventory represents fluid tailings production net of fluid
million people in accordance to population numbers retrieved from tailings treated.
flow to measure financial performance and liquidity. Free funds flow
Statistics Canada 2016 census. (4) Statistic applies to Oil Sands Base. PASS accounts for ~75% of the
is a non-GAAP measure. See Non-GAAP Measures in the
Slide 17------------------------------------------------------------- 2019 treatment volumes.
Advisories. (1) Upgrading volume percentages are based on historical averages Slide 26-------------------------------------------------------------
(4) At West White Rose Project discussions are ongoing with the
and subject to change with operating and market conditions. See (1) RIF refers to recordable injury frequency.
operator and various levels of government to determine the future of
Forward-Looking Statements and Impact of the COVID-19 (2) LTIF refers to lost time injury frequency.
the project. At Terra Nova, the company is preserving the floating
Pandemic in the Advisories.
production storage and offloading unit quayside and deferring the
Slide 18------------------------------------------------------------- continued …
asset life extension until an economically viable path forward can be
(1) Nameplate capacities as at January 1, 2021. Nameplate capacities
SUNCOR ENERGY 44You can also read
