INVESTOR INFORMATION Q1 2019
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INVESTOR INFORMATION Q1 2019 Published May 1, 2019
2
Canada’s leading integrated energy company
$85B ~940 mbpd ~600 mbpd 28+ years ~460 mbpd ~1750
Enterprise value1 Oil production Heavy upgrading 2P Reserve life Refining nameplate
Retail sites4
As at March 31, 2019 nameplate capacity2 nameplate capacity2 index3 capacity2
1, 2, 3, 4 See Slide Notes and Advisories
3
Suncor – A resilient business focused on shareholder returns
Cash flow growth Cash generation
Strong potential FFO1 increase largely independent of market conditions Significant upside FFO1 sensitivity to WTI, based on TTM5 actuals
US$62.80 WTI, 0.76 C$/US$, US$18.00 NYH 3-2-1 crack spread
~5% CAGR2 (C$ billion)
$16
(Based on 2019 price guidance)
TTM average production 750 mbbls/d
$14
$12
Debottlenecks, $10
cost reductions $8
Fort Hills, and margin
Syncrude, improvements $6
and Hebron $5.5B Sustaining capital6 + dividend
$4
$2 $2.8B Sustaining capital6
$0
1
2018 FFO Production Free funds flow 2023E FFO1 $60 $63 $70 $75 $80
TTM
growth 3 growth 4 WTI ($USD)
Shareholder returns Resilience
Commitment to reliable returns through the commodity cycles Managing the balance sheet as a strategic asset
Dividend per share7 Liquidity
Buyback per share7,8,9
Anticipated buyback per share7,9
Dividend + buyback yield
7% $5 3B . $1.9B cash and $3.4B in available lines of credit
As at March 31, 2019
—
5% 5%
A low Credit rating
Investment grade
1.14 3% 3%
0.85 1.88
Baa1 DBRS (A Low) Stable, S&P(A-) stable, Moody’s (Baa1) Stable
WTI FFO Break-Even10 (USD)
1.02 1.14 1.16 1.28 1.44 1.68 ~$45 Sustaining capital6 + dividend
2019
2014 2015 2016 2017 2018 2019E
1, 2, 3, 4, 5, 6, 7, 8, 9, 10 See Slide Notes and Advisories.
4
Multi-year focus on structural free funds flow growth1,2
Production
growth5 Growth
Free funds In situ replication
flow growth
projects1,5 Opportunistic
Production share buybacks
Debottlenecks, cost
growth reductions & margin
Fort Hills, Syncrude improvements
and Hebron ~4% anticipated Sustain the business &
~5% anticipated production CAGR
continually grow the
~10% anticipated FFO CAGR (Refer to slide 9) dividend
production growth
per share4 (Refer to slide 8) 2023/2024 forward2
2020 – 2023 Structural FFO3 growth
2019 – 2020 & balance sheet strength
(Refer to slide 7)
1, 2, 3, 4, 5 See Slide Notes and Advisories.
5
The Suncor business advantage
Long life, low decline Unique business Financial strength
and low cost integration through market cycles
~800 mbpd 2019 production guidance midpoint5
~1000 mbpd of conversion capacity6
Resilient free funds flow8
~31yrs ~600 mbpd of heavy upgrading capacity7
~$93
~$65
Oil Sands 2P ~$49 ~$51
~$43
Reserve Life Index1
Oil
E&P Sands ~$10.2B
Resources ~$9.0B ~$9.1B
~$6.8B
Minimal Suncor’s ~560mbpd ~$6.0B
turnaround year
Fort McMurray
Major planned
upgrading
decline
forest fires
McMurray
~1% anticipated near term oil
Fort
sands decline rate2
2014 2015 2016 2017 2018
Dividends Sustaining Capital
Suncor’s 8
~460mbpd Discretionary Free Funds Flow WTI Average Price
refining
network
~$30 Capital discipline
2018 Oil Sands operations
sustaining capex + cash cost 1.6x Net debt to FFO9
USD / bbl3 1.5x under the previous leasing standard10
Global Global Target < 3x
markets markets
30% Total debt to capitalization
28% under the previous leasing standard10
Target 20-35%
~$45 Suncor and 3rd party
global markets $5.3B Liquidity
2019 break-even4 WTI (USD) Cash & cash equivalents ($1.9B) plus
sustaining capital + dividend Available credit facilities ($3.4B)11
1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11 See Slide Notes and Advisories.
6
The foundation of our business
Operational excellence
Reliability
Continuously improve the reliability of our business
Personal and process safety
Journey to Zero – goal to eliminate all workplace incidents
Cost management
Continuous focus on structural cost reduction initiatives
Environmental excellence and sustainability
Aiming to improve environmental performance, go beyond compliance in key areas Autonomous Haul Systems can reduce costs by ~$1/bbl1 and
improve safety, productivity, reliability, and environmental
performance
Capital discipline
Flexible allocation plan
Significant portfolio of high quality assets across the business
Balance sheet strength
17 years of dividend increases2
% Q1 2019 dividend increase
Opportunistic share buybacks
Liquidity and strong investment-grade credit rating through the commodity cycle
80 $100
Shareholder returns 60 $80
$60
Competitive & sustainable dividends, opportunistic share buybacks 40
$40
20 $20
Profitable growth 0
2013 2014 2015 2016 2017 2018
$0
Strategic acquisitions & divestments; high-quality organic growth potential
Shares WTI
1, 2 See Slide Notes and Advisories.
7
Capital discipline – flexible capital allocation plan1
$10/bbl increase in Brent price would generate approximately $2.4 billion of additional FFO2
Capital commitment Discretionary capital
Balance
Sustained Production
sheet
price growth to
leverage Sustaining Buyback4
outlook* 20203 Dividend4 Growth Capital1
metrics Capital1,6 target
Invest
8
Medium-term investment proposition1 – free funds flow2 growth
Free funds flow2 improvement potential for years 2020 - 2023 inclusive3 Examples of anticipated high return investment opportunities3
Excluding commodity price changes & largely independent of production growth
Suncor – Syncrude pipeline Tailings management
investment savings
$2.0B ~$200M at >25% IRR ~$4 per bbl
Potential to
deliver Conservative return based on Average go forward expected sustaining
incremental planned outages capital, reclamation & opex savings for
free funds base plant mined bitumen versus
flow2 of
~$500M/yr
Further potential value upside 2018 spend
including mitigation of unplanned
outages and product sharing during Tailings placement in pit - less land use
normal operations Less tailings transport & handling
Growth Margin Opex savings Sustaining Total value add (slide 21 for further details) Accelerated dewatering of ponds
improvements capital savings (slide 23 for further details)
Examples of short lead time & high quality initiatives independent of commodity market conditions
Growth Margin improvements Opex and sustaining capital savings
Asset synergies
E&P Coke fired boiler replacement Coordinated maintenance strategy, timing, materials, critical trades, etc.
Value developments & Cogeneration with lower cost, high efficiency
asset extensions steam and power revenue upside AHS4 deployment
Base mine & Fort Hills implementation
Suncor - Syncrude pipeline
Optimizing Syncrude assets & Suncor’s sour
Supply chain optimization
Debottlenecks Equipment standardization and inventory consolidation/reduction
Fort Hills, MacKay River & SCO margins
Firebag processing facilities
Supply & trading Tailings management
Value chain optimization Implementation of PASS5
Digital technology adoption
Wireless employee badges (worker safety & optimization), Advanced process analytics (operational optimization), Robotic process automation (cost reduction), etc.
1, 2, 3, 4, 5 See Slide Notes and Advisories.
9
Longer term organic growth – Replication1
Targeting less than $50 WTI (USD) cost of capital breakeven1
Planned phases of 40 mbpd next
~10 generation in situ facilities (replication)
Phases submitted for regulatory approval
7 2 approved and 5 pending approval
2023/24 Potential first oil from first phase 3
Months expected between first oil
12 to 15 from successive phases
360+ Mbpd production growth plans2
Potential replication production growth profile
400
Replication facilities approved by
300 the regulator
Replication facility application
mbpd
submitted
200
100
0
2023 2025 2027 2029 2031 2033
1, 2, 3 See Slide Notes and Advisories.
10
Disciplined cost management
History of structural cost reductions Medium-term cash operating
Consistent reduction in Oil Sands operations cash operating costs (C$/bbl)
(Fort Hills and Syncrude cash operating costs are not included)
cost targets4 (C$/bbl)
$40 Oil Sands1 Oil Sands ≤ $20/bbl
$37.00
Fort Hills ≤ $20/bbl
Reflects a heavy Syncrude ≤ $30/bbl
maintenance year
Mining2
$27.55 Enterprise-wide
$25.55
cost reduction initiatives
$25.25 Operational
Improved reliability across assets
$20 through sharing technology and
In situ3 procedures, coordinated maintenance
$16.50 planning and asset connectivity
Technology
Technology applications such as
robotic process automation, advanced
analytics, Autonomous Haul Trucks
$8.45 and Artificial Intelligence
Supply chain & business processes
Improved cost and efficiency across assets
$0 through contractor and parts
2013 2014 2015 2016 2017 2018 standardization, bulk procurement and
streamlined processes
1, 2, 3, 4 See Slide Notes and Advisories.11
Generating discretionary free funds flow1
FFO2 consistently exceeds sustaining capital, associated capitalized interest and dividends (C$ billions)
$12
$10
$10.2
$8 $9.1
$6
$6.8
$6.0 $2.3
$4 $2.1
$1.6 $1.9
$2 $3.9
$2.7 $3.0
$2.3
$0
2015 2016 2017 2018 2019E
WTI US$3 $48.75 $43.35 $50.95 $64.80 $58.00
NYH 3-2-1 US$4 $19.70 $14.05 $17.70 $18.00 $17.00
Sustaining capital Dividend FFO2 Illustrative 2019 FFO2,5 2019 Estimated sustaining capital6 + dividends7
1, 2, 3, 4, 5, 6, 7 See Slide Notes and Advisories.12
Returning value to shareholders
17 consecutive years of dividend increases1 & opportunistic share buybacks with increased share repurchase program2
17% $0.42 ~$5 billion ~$514 million $2 billion
Share repurchases Share repurchase
Q1 2019 dividend Q1 2019 dividend per NCIB programs executed3
completed program commenced
increase share (May 2017 - Dec 2018)
(Jan 2019 - Mar 2019) March 20194
$100 Expected buyback in 20192 $3.50
Buyback per share (Actual)2,5,6,7
Buyback per share (Expected)2,5,7
$3.00
Dividend per share5
$80
WTI US$
Dividends $2.50
expected to
$60 grow in line
with $2.00
C$/share
US$/bbl
sustainable
FFO8
$1.50
$40 increases7
$1.00
$20
$0.50
$0 $0.00
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1, 2, 3, 4, 5, 6, 7, 8 See Slide Notes and Advisories.13
Strong balance sheet
1.6x Net debt to FFO1
Net debt to FFO1 1.5x under the previous leasing standard2
Has remained within target range throughout all price cycles Target < 3x
30% Total debt to capitalization
97.95 28% under the previous leasing standard2
94.20 93.00 Target 20-35%
WTI $5.3B Liquidity
($US/bbl) Cash & cash equivalents ($1.9B) plus available credit
facilities ($3.4B)1 as at March 31, 2019
64.80
54.90 A Investment grade credit rating
48.75 50.95 DBRS Rating Limited (A Low) Stable
low
Standard and Poor’s Rating Services (A-) Stable
43.35 Baa1 Moody’s Corp (Baa1) Stable
3x
2.4 Manageable debt maturity profile3
(C$ billion)
Increase due to new
leasing standard2
1.7
Target range
2019-2020 $0.2
1.6
1.4 1.5
2021-2024 $2.7
0.9 2025-2029 $1.5
0.7 0.7
2030-2034 $1.7
Net debt to FFO1 2035-2039 $5.1
0x 2040-2047 $1.5
2012 2013 2014 2015 2016 2017 2018 2019 Q1
1, 2, 3 See Slide Notes and Advisories.14
Generating industry-leading FFO1 per barrel and shareholder returns
Delivering leading FFO1 per barrel2 and shareholder returns despite Canadian oil differential headwinds,
demonstrating the value of our integrated business model and global competitiveness
Quality cash flow Shareholder returns
Reliable quality cash flow from Suncor’s unique Growing dividends and executing opportunistic
integrated business share repurchases with sustainable discretionary
free funds flow
FFO1/boe WTI Total cash yield
($US/boe) ($US/bbl) (dividend + buyback)
$60 120 10%
9%
$50 100
8%
7%
$40 80
6%
$30 60 5%
4%
$20 40
3%
2%
$10 20
1%
$- 0%
2012 2013 2014 2015 2016 2017 2018 2012 2013 2014 2015 2016 2017 2018
Suncor WTI Oil Sands peer range3 Supermajor peer range3 Suncor dividend yield4 Suncor buyback yield5
1, 2, 3, 4, 5 See Slide Notes and Advisories.15
Return on capital employed1 past the inflection point
Suncor's spending on major capital projects Fort Hills and Hebron completed
The 50-year, long-life, low-decline production profile of Fort Hills has begun
Focusing on near-term low capital intensity and high value added projects2
Debottleneck existing assets, product margin improvements and further cost reductions
ROCE1 compared to supermajors
20% $100
$80
15%
$60
10%
$40
5%
$20
0%
2013 2014 2015 2016 2017 2018 $0
-5% -$20
Supermajor peer range 3 Suncor WTI (US$/bbl)
1, 2, 3 See Slide Notes and Advisories.16
The value of Suncor’s integrated business
Benefiting from our crude and product strategy through all market cycles
Exposure to high value product pricing provides significant cash flow upside potential
BRENT E&P production attracts Brent based pricing
PRICING ~110 mbpd Offshore production with access to tidewater
SYNTHETIC Bitumen conversion to a higher value synthetic oil1
PRICING ~600 mbpd Heavy upgrading capacity1
GLOBAL
Oil sands bitumen with direct access to global markets
HEAVY
PRICING
~100 mbpd Logistical flexibility for non-upgraded bitumen
GLOBAL Suncor’s refined products capacity1 sold for global pricing
PRODUCT
PRICING
~460 mbpd ~260 mbpd of oil sands synthetic and heavy feedstock capability2
Remaining light oil feedstock purchased in the market
Integration between upstream, midstream & downstream businesses
minimizes downside risks from differential volatility
Heavy differential sensitivity Synthetic differential sensitivity
Up to $25M FFO3 impact anticipated (CAD) per $1 annual Between $20M to $40M FFO3 impact anticipated (CAD) per $1
change (USD) in a normalized Western Canadian L/H4 annual change (USD) in a normalized synthetic to WTI benchmark5
1, 2, 3, 4, 5 See Slide Notes and Advisories.17
IMO1 2020 – Positive FFO2 impact expected for Suncor
Expect IMO1 regulatory change will enhance demand for middle distillates used in new marine fuel
Projected impacts Suncor advantages
Decreasing global demand for bunker fuel3 Minimal exposure to bunker fuel
Sales from Suncor refineries (~1%)
Widening global L/H4 differentials Minimal impact of widening L/H4 spread18
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 and supply chain management
Consolidation of regional contracts (lodging, busing, flights, etc.)
Operational optimizations
Unplanned outage impact mitigations
Turnaround planning optimization
Process and technology sharing
100% WI
Joint ownership
Base mine upgrader and terminal
Assets and resource developments U Syncrude upgrader
Lease development and asset utilization optimization C In situ central processing facility
P Fort Hills primary/secondary extraction
Pipelines
Proposed bi-directional pipelines1
1 See Slide Notes and Advisories.19
Market access for Suncor’s oil sands production
Suncor has made strategic investments in refineries and current/proposed logistics infrastructure
to mitigate Alberta egress limitations and market disconnects
Fort McMurray ~750 Alberta
egress bottleneck
does not impact
the ability to move
Suncor barrels1
142 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
Denver
Patoka
San Francisco Suncor refinery capacity
mbpd
Cushing Industry approximate rail
Pipelines Los Angeles
KXL Potential mbpd loading capacity in
(current and forecasted gross capacity2) Markets AB/SK
Feeder lines
Heavy oil refineries
Trans Mountain Pipeline, TMPL (300 mbpd)2 along the Gulf Coast
Trans Mountain Expansion , TMEP – Proposed3 (+590 mbpd)2
Express, Platte and Rocky Mountain (280 mbpd)2 Houston/Texas City
TransCanada Keystone (590 mbpd)2
TransCanada Keystone XL – Proposed3 (+830 mbpd) 2
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
1, 2, 3 See Slide Notes and Advisories.20
Fort Hills – Leading deployment of mining technologies
Higher quality, fungible product Enhanced reliability & efficiency
Secondary extraction – Paraffinic Froth Treatment Autonomous Haul Systems
Bitumen froth mixed with solvents to remove water and minerals Heavy haulers are AHS ready, full deployment expected by 2021
Greater reliability & productivity
Designed to run 24/7 with no “breaks”
Shipped Lower costs
~$1/bbl opex savings1
>75% bitumen directly to
market Safer operations
~10% asphaltenes
Minimizes human interface in the mine, obstacle detection
2% water & sediment
back into Improved tailings technology
mine pit
Use of thickener process and PASS
Partially upgraded In process rapid dewatering coupled with in pit tailings storage
Higher value due to reduced asphaltenes content
Reduced energy intensity & operating costs
Lower GHG emissions Flocculant2 added in process to aid in dewatering tailings
In line with the average crude refined in the U.S.
Warm water from rapid dewatering is reused in the plant
Less diluent required Resulting lower energy demand reduces costs and GHG emissions
~20% diluent mix vs. ~30% for in situ barrel transportation
Faster reclamation
Fungible product Partially dewatered tailings feed into PASS process (slide 23)
Meets pipeline, refinery specifications, no further upgrading
1, 2 See Slide Notes and Advisories.21
Syncrude – Following Suncor’s proven reliability journey
Suncor base plant upgrader reliability 91% 91%
Multi-year journey to reach >90% reliability 90%1
Reliability step-change after 4 years
83% Not a gradual profile
81%
interconnect pipeline
80%
Firebag to basemine
79%
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
2011 2012 2013 2014 2015 2016 2017
Syncrude plant reliability
A similar multi year journey targeting >90% reliability2
2016 2017 2018 2019 2020/21 (Target >90% reliability &22
ESG leadership
Environment
Regulatory & policy leadership GHG & water performance Technology & innovation
Operate under one of the most stringent, >60% reduction in Oil Sands Base GHG emissions $635M in technology investments in 20184
transparent and compliance-focused regulatory intensity since 1990
Significant new technology deployment
frameworks1 Goal to reduce corporate GHG intensity by 30% PFT, AHS, PASS, NCG co-injection5
Participation in government-led initiatives to by 20302
External collaboration
advance leadership in Canada’s O&G sector Estimated carbon cost for upstream production is up to
Canada’s Oil Sands Innovation Alliance (COSIA)
(e.g. 2018 co-chair Resources of the Future) $0.60/bbl3 over the period 2018-2027
Clean Resource Innovation Network
A strong voice for practical, effective policy and ~30% reduction in water use intensity at Oil Sands NRG COSIA Carbon XPRIZE
regulation development and design Base vs. the prior 4-year average EVOK Innovations
(e.g. Bill C-69 amendments)
Social Governance
Advancing Aboriginal partnerships 2018 economic contribution Governance leadership
$503M agreement with Fort McKay and Mikisew $5.3 billion capital spend Chief Sustainability Officer reports to CEO
Cree First Nations for 49% of ETF6
$2.3 billion government royalties & taxes Climate risk is overseen by the Board
Spent $700M with Aboriginal businesses in 2018
$5 billion since 1999 Close to 5,000 vendors across Canada and Diverse and experienced Board of Directors8
1,300 in the US 8 out of 9 are independent
30 Petro-Canada branded retail sites owned or Aboriginal representation
leased by First Nations ~12,500 Suncor employees
33% are women
Working with multiple Aboriginal communities on
Executive compensation linked to financial,
DPL7 to support PASS5
operational and ESG factors
1, 2, 3, 4, 5, 6, 7, 8 See Slide Notes and Advisories.23
Suncor’s tailings reclamation – PASS
PASS technology aims to rapidly dewater and treat tailings to accelerate reclamation and
lower our environmental footprint at a lower cost
Advancing execution, with regulatory approval received October 2017
Suncor pioneered TRO in 2010
(Tailings Reduction Operations)
Removal of MFT1 from tailings pond
Rapid dewatering of MFT1 with addition of flocculant2
Atmospheric drying of MFT1 Reclamation timeframe is extended
Placement of MFT1 in thin layers for atmospheric drying takes time and is area limited due to drying process
Building on TRO with PASS
(Permanent Aquatic Storage Structure)
Addition of coagulant3 to improve water quality
Placement of tailings below grade, suitable for lake bottom
PASS does not result in new
Reclamation timeframe is reduced
Capping with aquatic cover (E.g. Demonstration Pit Lake) disturbed area
Anticipated benefits of PASS4
Faster reclamation Lower cost Community engagement Demonstrated results
In 2018, PASS doubled tailings treatment capacity to 165% of total annual tailings production
1, 2, 3, 4 See Slide Notes and Advisories24 Appendix
25
2019 Capital and production guidance1
2019 Capital2 Economic Investment3 Production4
$ millions percent boepd
Oil Sands 3,050 – 3,400 17% 410,000 – 440,000 Oil Sands operations
E&P 1,000 – 1,200 97% 85,000 – 95,000 Fort Hills
Downstream 700 – 775 23% 160,000 – 180,000 Syncrude
Corporate 150 – 225 53% 105,000 – 115,000 E&P
430,000 – 450,000 Refinery throughput
Total $4,900 – $5,600 37% 780,000 – 820,000 Upstream production
2019 Planned maintenance for Suncor operated assets and Syncrude5,6
Upstream Timing Impact on quarter Downstream Timing Impact on quarter
Firebag Q2 ~30 mbpd Edmonton Q2 ~10 mbpd
U1 Q2 ~25 mbpd* Commerce City Q2 ~20 mbpd
Fort Hills Q2/Q4 ~15/10 mbpd Montreal Q2 ~30 mbpd
U2 Q3/Q4 ~25/15 mbpd* Sarnia Q2 ~15 mbpd
Syncrude6 Q3/Q4 ~20/20 mbpd
* A portion of the SCO volume impact will be supplemented by increasing bitumen sales
2019 Sensitivities7 +1$/bbl Brent +$1/bbl NYH 3-2-1 +$0.01 FX +$1/GJ AECO +$1L/H Diff +$1L/L Diff
(US$) (US$) (US$/C$) (C$) (US$) (US$)
FFO (C$ MM) ~240 ~150 ~(205) ~(240) ~(25) ~(20 – 40)
1, 2, 3, 4, 5, 6, 7 See Slide Notes and Advisories.26
High quality mining, in situ and upgrading portfolio1
In Situ Mining
Firebag Base Plant
203,000 bpd capacity 350,000 bpd capacity
Suncor working interest 100% Suncor working interest 100%
2,553 mmbbls 2P reserves1 1,418 mmbbls 2P reserves1
MacKay River Syncrude
38,000 bpd capacity Syncrude operated
Suncor working interest 100% 205,600 bpd coking capacity (SU WI)
508 mmbbls 2P reserves1 Suncor working interest 58.74%
1,272 mmbbls 2P reserves1 (SU WI)
Future opportunities Fort Hills
Lewis (SU WI 100%) Suncor operated
Meadow Creek (SU WI 75%) 105,000 bpd capacity (SU WI)
Suncor working interest 54.11%
1,438 mmbbls 2P reserves1 (SU WI)
First oil achieved in January 2018
1 See Slide Notes and Advisories.27
Focused on 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
~85% of Suncor’s 2019
guidance production
In Situ Medium Low Low Low Low High
Offshore
High Medium Medium Very low Medium Medium
~15% of Suncor’s 2019
guidance production
Tight oil Low Very high High Medium High Low
50 Years
Beneficial attribute Challenging attribute
1, 2, 3 See Slide Notes.28
Canada’s largest Refining & Marketing business
Edmonton refinery Sarnia refinery
142,000 bpd capacity 85,000 bpd capacity
100% oil sands feedstock1 ~75% oil sands feedstock1
Commerce City refinery Montreal refinery
98,000 bpd capacity 137,000 bpd capacity
~20% oil sands feedstock1 ~30% oil sands feedstock1
Marketing Other
Over 500,000 bpd in product sales 4 wind farms3 (111 MW)
1766 North American retail sites St. Clair Ethanol plant (400 ML/yr)
(~50% Suncor owned). 51% interest in Parachem
Petro-Canada remained as the brand Global sulphur and petroleum coke
with largest urban share of market in marketing
Canada for 20182
300+ wholesale sites
1, 2, 3 See Slide Notes and Advisories.29
Refining & Marketing – Demonstrating cash flow resilience
R&M Funds from operations1 WTI – WCS ($US/bbl) Refinery utilization vs. US average Suncor
Capturing the value of widening differentials FFO ($CAD billions) Percent of refining capacity
US Average2
26.30
Full turnaround
5
25.50 30
100% at the Edmonton
21.05 19.40
20
refinery Q2 2018
4
13.50 13.85 11.95
3.8 10
3.2
3
2.9 2.8 0
2.7 2.6 90%
2
2.3
-10
1
US$/Cdn$ FX > $0.90
(2012 – 2014)
-20
0 -30
80%
2012 2013 2014 2015 2016 2017 2018 2012 2013 2014 2015 2016 2017 2018 Q1 2019
Price realizations & refinery crude costs3 Realized GM6/bbl vs. NYH 3-2-1 benchmark
All Suncor refineries Q1 2019, 40% equity feedstock4 All Suncor refineries Q1 2019
36.35
$120
$100 28.65
Brent C$84.255
$80 20.75
15.55 NYH
$60
3-2-1
107 NYH C$
$40 3-2-1
62 60 US$
$20
Benchmark Benchmark Crude Product mix Yield/ Realized FIFO impact Realized
7
$0 crack crack differential & location feedstock/ GM (LIFO) 7 GM (FIFO)
OS realization Feedstock cost R&M realization differential other
1, 2, 3, 4, 5, 6, 7 See Slide Notes and Advisories.30
Offshore with >390 million barrels of 2P reserves1
East Coast Canada North Sea
Hibernia
ExxonMobil operated Buzzard
Suncor working interest 20% CNOOC Petroleum Europe Limited operated
63 mmboe 2P reserves1 (Suncor WI) Suncor working interest 29.89%
57 mmboe 2P reserves1 (Suncor WI)
Hebron
ExxonMobil operated
Suncor working interest 21.034%
31.6 mboepd planned net capacity
Golden Eagle
147 mmboe 2P reserves1 (Suncor WI)
CNOOC Petroleum Europe Limited operated
First oil achieved in November 2017
Suncor working interest 26.69%
13 mmboe 2P reserves1 (Suncor WI)
Terra Nova
Suncor Energy operated
Suncor working interest 37.675%
32 mmboe 2P reserves1 (Suncor WI)
Oda
Spirit Energy operated3
Suncor working interest 30%
11 mboepd planned net capacity
White Rose 8 mmboe 2P reserves1 (Suncor WI)
Husky Energy operated
Suncor working interest 27.5%2
54 mmboe 2P reserves1 (Suncor WI)
1, 2, 3 See Slide Notes and Advisories.31
E&P – Investing in high value, low risk projects
Recent performance Sanctioned projects1
mboe/d
Fenja (Norway)
120
• 17.5% working interest
• 6 mbbls/d anticipated net peak production
100
Hebron • First oil expected 2021
80 White Rose
60 Hibernia
Terra Nova
40 Buzzard Phase 2 (UK)
Golden Eagle
20 • 29.89% working interest
Buzzard
0
• Production anticipated to offset natural declines
2012 2013 2014 2015 2016 2017 2018 • First oil expected 2021
111.70 108.75
98.85
West White Rose Project (ECC4)
$billions
2.5 Brent
• ~26% working interest
71.05
54.25
($US/bbl) • 20 mbbls/d anticipated net peak production
52.40
2.0 • First oil expected 2022
43.75
1.5
FFO2
Free funds flow3
Future opportunities
1.0
Capital spend
• Rosebank-UK (40% Suncor WI)
0.5
• Near field developments including subsea
- tie-backs, field extensions and infill drilling
2012 2013 2014 2015 2016 2017 2018
1, 2, 3, 4 See Slide Notes and Advisories.32
Track record of counter-cyclical acquisitions and divestments
Non-core UK offshore 10% Fort Hills WI
$100 WTI US$/bbl 1
Total E&P Canada
$80 $
2 37% Syncrude WI
Canadian Oil Sands
$60 7
Petro -Canada 6
1 5
2 3
4
3 Rosebank
$40 30% WI
$20
4 5% Syncrude WI
Murphy Oil
$40
NYH 3-2-1 US$/bbl
Pioneer retail network 5
3.31% Fort Hills WI
$30 Total E&P Canada
$
$20 5% Syncrude WI4
Conoco Commerce Valero Commerce City 6 Mocal Energy
City refinery refinery
$10
17.5% Fenja WI5
Petro -Canada Faroe Petroleum
$0
7 Rosebank
$8 Colorado, Canadian & 10% WI6
AECO US$/gj Trinidad & Tobago
$6 gas assets
$ Canadian gas assets
$4
$
$2 Petro -Canada
$0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Other divestments: East Tank Farm1, Lubricants2, wind facilities3 Acquisition
$ Divestment
1, 2, 3, 4, 5, 6 See Slide Notes and Advisories.33 Notes
34 Notes
35 Advisories Forward-Looking Statements – This presentation contains certain in costs; the ability to access external sources of debt and equity capital employed (ROCE) and last in, first out (LIFO) – are not “forward-looking statements” within the meaning of the United States capital; the timing and the costs of well and pipeline construction; prescribed by GAAP. All non-GAAP measures presented herein do Private Securities Litigation Reform Act of 1995 and “forward-looking Suncor’s dependence on pipeline capacity and other logistical not have any standardized meaning and therefore are unlikely to be information” within the meaning of applicable Canadian securities constraints, which may affect the company’s ability to distribute comparable to similar measures presented by other companies. legislation (collectively, “forward-looking statements”), including products to market; mandatory production curtailments being greater Therefore, these non-GAAP measures should not be considered in statements about: Suncor’s strategy and business plans; expected or imposed for longer than anticipated; the timely receipt of isolation or as a substitute for measures of performance prepared in compound annual growth rates, capital expenditures, shareholder regulatory and other approvals; the timing of sanction decisions and accordance with GAAP. All non-GAAP measures are included return growth, WTI break-even, balance sheet leverage metrics, Oil Board of Directors’ approval; the availability and cost of labour, because management uses the information to analyze business Sands decline rate, cost reductions, and operating and financial services, and infrastructure; the satisfaction by third parties of their performance, leverage and liquidity and therefore may be results; reserves estimates and reserve life indices; expected obligations to Suncor; the impact of royalty, tax, environmental and considered useful information by investors. See the “Non-GAAP utilization of assets; expectations for dividends, share repurchases, other laws or regulations or the interpretations of such laws or Financial Measures Advisory” section of the Q1 MD&A. production growth, funds from operations, free funds flow growth, regulations; applicable political and economic conditions; risks and ROCE; anticipated impact of changes in crude oil price associated with existing and potential future lawsuits and regulatory Funds from operations (previously referred to as cash flow from differentials; anticipated impact of IMO regulatory changes; potential actions; improvements in performance of assets; and the timing and operations) is defined in the Q1 MD&A, for the three months ended future free funds flow growth projects, including the timing and impact of technology development. March 31, 2019 is reconciled to the GAAP measure in the Q1 impact thereof, and free funds flow improvement and cash flow MD&A, for 2012 to 2018 is reconciled to GAAP measures in upside potential; illustrative funds from operations and discretionary Although Suncor believes that the expectations represented by such Suncor’s annual management’s discussion and analysis (MD&A) for free funds flow; target break-even cost of capital; plans around in forward-looking statements are reasonable, there can be no the respective year; annual E&P and R&M funds from operations for situ growth; cash operating costs targets; Suncor’s GHG intensity assurance that such expectations will prove to be correct. Suncor’s 2012 to 2017 are reconciled to GAAP measures in Suncor’s annual reduction goal; estimated average carbon cost for upstream Management’s Discussion and Analysis for the first quarter ended MD&A for the respective year; Oil Sands operations cash operating production; expectations, targets and potential opportunities with March 31, 2019 and dated May 1, 2019 (the Q1 MD&A), Annual costs (previously referred to as Oil Sands cash operating costs) is respect to Syncrude; expected IRR for Syncrude interconnecting Report for the year ended December 31, 2018 (the 2018 Annual defined in the Q1 MD&A, for the year ended December 31, 2018 is pipeline and tailings management savings; Oil Sands regional Report) and its most recently filed Annual Information Form/Form reconciled to the GAAP measure in the 2018 Annual Report, and for synergy opportunities; expectations for and potential benefits of 40-F and other documents it files from time to time with securities 2013 is reconciled to the GAAP measure in Suncor’s 2013 annual autonomous haul trucks, and PASS, expectations about Fort Hills; regulatory authorities describe the risks, uncertainties, material MD&A; discretionary free funds flow (previously referred to as capital and production guidance; expected peak production and first assumptions and other factors that could influence actual results discretionary free cash flow) is defined in the Q1 MD&A, for 2015 to oil dates for sanctioned E&P projects; goals with respect to and such factors are incorporated herein by reference. Copies of 2018 is reconciled to the GAAP measure in Suncor’s 2018 annual reliability, safety, cost management and sustainability; and potential these documents are available without charge from Suncor at 150 MD&A, and for 2014 is reconciled to the GAAP measure in Suncor’s future pipelines and market access expectations that are based on 6th Avenue S.W., Calgary, Alberta T2P 3E3, by calling 1-800-558- 2016 annual MD&A; the estimated impact of the LIFO method for Suncor’s current expectations, estimates, projections and 9071, or by email request to invest@suncor.com or by referring to the three months ended March 31, 2019 is defined and reconciled in assumptions that were made by Suncor in light of its experience and the company’s profile on SEDAR at www.sedar.com or EDGAR at the Q1 MD&A; and Fort Hills cash operating costs and Syncrude its perception of historical trends. Some of the forward-looking www.sec.gov. Except as required by applicable securities laws, cash operating costs are defined and reconciled to the GAAP statements may be identified by words such as “planned”, Suncor disclaims any intention or obligation to publicly update or measures in the Q1 MD&A. “estimated”, “target”, “goal”, “illustrative”, “strategy”, “expected”, revise any forward-looking statements, whether as a result of new “focused”, “opportunities”, “may”, “will”, “outlook”, “anticipated”, information, future events or otherwise. Suncor’s actual results may Reserves– Unless noted otherwise, reserves information presented “potential”, “guidance”, “predicts”, “aims”, “proposed”, “seeking” and differ materially from those expressed or implied by its forward- herein for Suncor is presented as Suncor’s working interest similar expressions. Forward-looking statements are not guarantees looking statements, so readers are cautioned not to place undue (operating and non-operating) before deduction of royalties, and of future performance and involve a number of risks and reliance on them. without including any royalty interests of Suncor, and is at December uncertainties, some that are similar to other oil and gas companies 31, 2018. For more information on Suncor’s reserves, including and some that are unique to Suncor. Users of this information are Suncor’s corporate guidance includes a planned production range, definitions of proved and probable reserves, Suncor’s interest, cautioned that actual results may differ materially as a result of, planned maintenance, capital expenditures and other information, location of the reserves and the product types reasonably expected among other things, assumptions regarding: commodity prices; based on our current expectations, estimates, projections and please see Suncor’s most recent Annual Information Form/Form 40- timing of commissioning and start-up, cost, characteristics, and assumptions (collectively, the “Factors”), including those outlined in F dated February 28th, 2019 available at www.sedar.com and capacity of capital projects; assumptions contained in or relevant to our 2019 Corporate Guidance available on www.sec.gov. Reserves data is based upon evaluations conducted Suncor’s 2019 Corporate Guidance; fluctuations in foreign exchange www.suncor.com/guidance, which Factors are incorporated herein by independent qualified reserves evaluators as defined in NI 51- and interest rates; product supply and demand; market competition; by reference. Suncor includes forward-looking statements to assist 101. future production rates; assets and facilities not performing as readers in understanding the company’s future plans and anticipated; expected debottlenecks, cost reductions and margin expectations and the use of such information for other purposes BOE (Barrels of oil equivalent) – Certain natural gas volumes improvements not being achieved to the extent anticipated; may not be appropriate. have been converted to barrels of oil on the basis of six thousand dividends declared and share repurchases below expected levels; cubic feet to one boe. This industry convention is not indicative of the sufficiency of budgeted capital expenditures in carrying out Non-GAAP Measures – Certain financial measures in this relative market values, and thus may be misleading. planned activities; risks inherent in marketing operations (including presentation – namely funds from operations, free funds flow, Oil credit risks); imprecision of reserves estimates and estimates of Sands operations cash operating costs, discretionary free funds recoverable quantities of oil, natural gas and liquids from Suncor’s flow, Syncrude cash operating costs, Fort Hills cash operating costs, properties; expected synergies and the ability to sustain reductions In Situ cash operating costs, mining cash operating costs, return on
36
Slide Notes
Slide 2------------------------------------------------------------- All dividends are at the discretion of Suncor’s Board of Directors. Slide 5---------------------------------------------------------------
(1) Market capitalization + debt - cash and cash equivalents. See Forward-Looking Statements in the Advisories. (1) As at December 31, 2018 and assumes that approximately 7.19
(2) Nameplate capacities as at March 31, 2019. Nameplate capacities (8) Figure does not include the $43 million worth of shares repurchased billion barrels of oil equivalent (boe) of proved and probable
may not be reflective of actual utilization rates. See Forward- in the twelve months ended December 31, 2015 ($0.03/share reserves (2P) are produced at a rate of 628.6 mboe/d, Oil Sands’
Looking Statements in the Advisories. repurchased in 2015). average daily production rate in 2018. Reserves are working interest
(3) As at December 31, 2018 and assumes that approximately 7.58 (9) 2017 buyback per share reflects $1.4 billion of actual spend under before royalties. See Reserves in the Advisories.
billion barrels of oil equivalent (boe) of proved and probable the normal course issuer bid (NCIB). 2018 buyback per share (2) Reflects Oil Sands’ anticipated compounded annual decrease in
reserves (2P) are produced at a rate of 732.0 mboe/d, Suncor’s reflects $3.1 billion of actual spend under Suncor’s NCIBs. 2019 production for 2019-2023 and is calculated on a production-
average daily production rate in 2018. Reserves are working buyback per share assumes the repurchase of approximately $2.0 weighted basis using planned production for those years, and
interest before royalties. See Reserves in the Advisories. billion in 2019. Suncor’s Board of Directors has approved the assumes no economic capital spend, no acquisitions and no
(4) 1527 retail sites are operated under the Petro-Canada brand. repurchase of up to $2.0 billion worth of the company’s common divestments during that period.
Slide 3-------------------------------------------------------------- shares beginning March 1, 2019. Suncor’s share repurchases are (3) Refers to Oil Sands operations sustaining capital per barrel, which is
(1) Funds from operations (FFO) is a non-GAAP financial measure. opportunistic. The actual number of shares that will be repurchased calculated by dividing Oil Sands operations sustaining capital by Oil
See Non-GAAP Measures in the Advisories. Funds from operations and the timing of any such purchases will be determined by Suncor Sands operations production, plus Oil Sands operations cash
is calculated as cash flow provided by operating activities excluding and will depend on market conditions, funds flow and other factors, operating costs per barrel, all as indicated in the Q1 MD&A. Oil
changes in non-cash working capital. FFO indicated for 2019 to and could differ materially from this assumption. See Forward- Sands operations cash operating costs is a non-GAAP financial
2023 is illustrative and is not intended to be a forecast of Suncor’s Looking Statements in the Advisories. measure. See Non-GAAP Measures in the Advisories.
FFO. It is indicative of FFO based on the 2019 pricing guidance (10) Refers to estimated average WTI crude oil price for 2019 in US (4) Refers to estimated average WTI crude oil price for 2019 in US
released on May 1, 2019, as well as the production and free funds dollars required for funds from operations for 2019 to equal dollars required for funds from operations for 2019 to equal
flow growth assumptions outlined below. Actual results may differ estimated 2019 sustaining capital expenditures inclusive of estimated 2019 sustaining capital expenditures inclusive of
materially. See Forward-Looking Statements in the Advisories. associated capitalized interest and dividends. Sustaining capital associated capitalized interest and dividends. Sustaining capital
(2) Compound annual growth rate (CAGR) is calculated for the years represents anticipated asset sustainment and maintenance capital represents anticipated asset sustainment and maintenance capital
2018 to 2023 using Suncor’s business plan. Actual results may vary expenditures plus well pad spend (inclusive of associated expenditures plus well pad spend (inclusive of associated
materially. See Forward-Looking Statements in the Advisories. capitalized interest) based on the company’s current business capitalized interest) based on the company’s current business
(3) Production growth assumes ~10% CAGR per share from 2018 to plans. Assumes production, sustaining capital and business plans. Assumes production, sustaining capital and business
2020 and is calculated using the midpoint of 2019 guidance as well environment at the midpoint of 2019 guidance released on May 1, environment at the midpoint of 2019 guidance released on May 1,
as Suncor’s production growth business plan for 2020. Actual 2019 and a $0.42/share dividend for each quarter in 2019. All 2019 and a $0.42/share dividend for each quarter in 2019. All
production may vary materially. See Forward-Looking Statements in dividends are at the discretion of Suncor’s Board of Directors. dividends are at the discretion of Suncor’s Board of Directors. Actual
the Advisories. Actual results may differ materially. See Forward-Looking results may differ materially. See Forward-Looking Statements in
(4) Free funds flow, previously referred to as free cash flow, is Statements in the Advisories. the Advisories.
calculated by taking funds from operations (FFO) and subtracting Slide 4--------------------------------------------------------------- (5) Full guidance is available at suncor.com/guidance. See Forward-
capital expenditures, including capitalized interest. Free funds flow (1) Free funds flow, previously referred to as free cash flow, is Looking Statements in the Advisories.
is a non-GAAP measure. See Non-GAAP Measures in the calculated by taking funds from operations (FFO) and subtracting (6) Conversion capacity as at March 31, 2019 and reflects Suncor’s
Advisories. Illustrative free funds flow growth potential shown capital expenditures, including capitalized interest. Free funds flow upgrading and refining capacity. Conversion capacity may not be
includes possible future opportunities currently being evaluated and is a non-GAAP measure. See Non-GAAP Measures in the reflective of actual utilization rates. See Forward-Looking
which may be subject to Board of Directors’, counterparty and Advisories. Statements in the Advisories.
regulatory approval. There can be no assurance these opportunities (2) Based on the company’s current business plans and business (7) Nameplate capacities as at March 31, 2019. Nameplate capacities
will be pursued or if pursued that they will result in the expected environment expectations, which are subject to change. Actual may not be reflective of actual utilization rates. See Forward-
benefits. See Forward-Looking Statements in the Advisories. results may differ materially. See Forward-Looking Statements in Looking Statements in the Advisories.
(5) Refers to Trailing Twelve Month average value as at March 31, the Advisories. (8) Free funds flow and discretionary free funds flow are non-GAAP
2019. (3) Funds from operations (FFO) is a non-GAAP financial measure. measures. See Non-GAAP Measures in the Advisories.
(6) The classification of the company’s capital expenditures has been See Non-GAAP Measures in the Advisories. Funds from operations (9) Funds from operations (FFO) is a non-GAAP financial measure.
updated to “‘asset sustainment and maintenance’’ and ‘‘economic is calculated as cash flow provided by operating activities excluding See Non-GAAP Measures in the Advisories. Funds from operations
investment’’ to better reflect the types of capital investments being changes in non-cash working capital. is calculated as cash flow provided by operating activities excluding
made by the company. Sustaining capital represents asset (4) Anticipated production growth per share is calculated using the changes in non-cash working capital.
sustainment and maintenance capital expenditures (inclusive of midpoint of 2019 guidance as well as Suncor’s business plan for (10) New metrics include the impact for IFRS 16 which came into effect
associated capitalized interest), which have been restated for April 2020. Actual results may vary materially. See Forward-Looking on January 1, 2019.
1, 2018 to December 31, 2018 to reflect the change in classification. Statements in the Advisories. (11) All figures are in billions of CAD. U.S dollar facilities converted at a
For a description of asset sustainment and maintenance capital (5) Includes possible future opportunities currently being evaluated and USD/CAD rate of $0.75, the exchange rate as at March 31, 2019.
expenditures see the Capital Investment Update section of the Q1 which may be subject to Board of Directors’, counterparty and
MD&A. regulatory approval. Assumes the completion of incremental continued …
(7) Based on the weighted average number of shares outstanding in pipeline capacity out of the Alberta market. There can be no
each year for 2014 to 2018 and the weighted average number of assurance these opportunities will be pursued or if pursued that they
shares outstanding for the three months ending March 31, 2019 for will result in the expected benefits. See Forward-Looking
2019. 2019 dividend amount assumes $0.42/share for each quarter. Statements in the Advisories.37
Slide Notes (continued)
Slide 6--------------------------------------------------------------- Slide 9------------------------------------------------------------- respective year. The WTI pricing for 2019 is based on Corporate
(1) Expected opex savings are upon full implementation and are (1) Based on current business plans and business environment Guidance issued May 1, 2019.
based on current plans and business environment expectations, expectations including completion of incremental pipeline capacity (4) The NYH 3-2-1 benchmark numbers for 2015-2018 are actual
which are subject to change. See Forward-Looking Statements in out of the Alberta market. Includes projects subject to Board of averages for each respective year. The 2019 price is based on
the Advisories. Directors’, counterparty and regulatory approval. Actual results Corporate Guidance issued May 1, 2019.
(2) Annualized dividend increases for 17 years assumes $0.42/share and breakeven cost of capital may differ materially from this (5) Illustrative FFO is not intended to be a forecast of Suncor’s FFO.
dividend for each quarter in 2019. All dividends are at the target. See Forward-Looking Statements in the Advisories. It is indicative of FFO based on the midpoint of 2019 guidance
discretion of Suncor’s Board of Directors. See Forward-Looking (2) Gross project volume including CNOOC International's 25% released on May 1, 2019. Also based on continued industry
Statements in the Advisories. interest in Meadow Creek. growth fundamentals. Actual results may differ materially. See
Slide 7-------------------------------------------------------------- (3) Refers to Other Six Lease Operators (OSLO). Forward-Looking Statements in the Advisories.
(1) Based on current business plans, which are subject to change. Slide 10-------------------------------------------------------------- (6) 2019 sustaining capital represents anticipated asset sustainment
See Forward-Looking Statements in the Advisories. (1) Refers to Oil Sands operations cash operating costs per barrel, and estimated maintenance capital expenditures (inclusive of
(2) Baseline funds from operations (FFO) has been derived from which is a non-GAAP measure. See Non-GAAP Measures in the associated capitalized interest) based on the company’s current
midpoint of 2019 guidance and the associated business Advisories. business plans. Actual sustaining capital expenditures and
environment. Sensitivities are based on changing a single factor (2) Refers to Mining cash operating costs per barrel, which is a non- associated capitalized interest along with the company’s business
by its indicated range while holding the rest constant. FFO is a GAAP measure, and is calculated by taking the sum of OS&G plans may differ materially from those anticipated and are subject
non-GAAP financial measure and is calculated as cash flow expenses (a GAAP measure) for Oil Sands, subtracting costs that to Board of Directors’ approval. For a description of asset
provided by operating activities excluding changes in non-cash are not directly attributed to Oil Sands operations Mining bitumen sustainment and maintenance capital expenditures see the
working capital. See Non-GAAP Measures in the Advisories. production, and dividing the resulting figure by Oil Sands Capital Investment Update section of the Q1 MD&A. See
(3) Based on 2018 full year production and planned volumes for operations Mining bitumen production, as indicated for the Forward-Looking Statements in the Advisories.
2020. Actual production may vary materially. See Forward- applicable year in the Supplemental Financial and Operating (7) Assumes 2019 quarterly dividend of $0.42/share. All dividends
Looking Statements in the Advisories. Information in the 2018 Annual Report and Suncor’s Annual are at the discretion of Suncor’s Board of Directors. See Forward-
(4) Dividends and future buybacks (NCIBs) are at the discretion of Report for the year ended December 31, 2017 (the 2017 Annual Looking Statements in the Advisories.
Suncor’s Board of Directors. NCIBs are subject to maximum limits Report). See Non-GAAP Measures in the Advisories. Slide 12-------------------------------------------------------------
permitted by law and stock exchange rules. See Forward-Looking (3) Refers to In situ cash operating costs per barrel, which is a non- (1) Annualized dividend increases for 17 years assumes $0.42/share
Statements in the Advisories. GAAP measure, and is calculated by taking the sum of OS&G dividend for each quarter in 2019. All dividends are at the
(5) Funds from operations (FFO) is a non-GAAP financial measure expenses (a GAAP measure) for Oil Sands, subtracting costs that discretion of Suncor’s Board of Directors. See Forward-Looking
and is calculated as cash flow provided by operating activities are not directly attributed to Oil Sands operations In situ bitumen Statements in the Advisories.
excluding changes in non-cash working capital. See Non-GAAP production, and dividing the resulting figure by Oil Sands (2) 2019 buyback per share assumes $2.0 billion of share
Measures in the Advisories. operations In situ bitumen production, as indicated for the repurchases in 2019. Suncor’s Board of Directors has approved
(6) Sustaining capital represents anticipated asset sustainment and applicable year in the Supplemental Financial and Operating the repurchase of up to $2.0 billion worth of its common shares
maintenance capital expenditures (inclusive of associated Information in the 2018 Annual Report. See Non-GAAP Measures beginning March 1, 2019. Suncor’s share repurchases are
capitalized interest) based on the company’s current business in the Advisories. opportunistic. The actual number of shares that will be
plans. See Non-GAAP Measures in the Advisories. (4) Refers to Oil Sands operations cash operating costs, Fort Hills repurchased and the timing of any such purchases will be
Slide 8--------------------------------------------------------------- cash operating costs and Syncrude cash operating costs, which determined by Suncor and will depend on market conditions,
(1) Based on possible future opportunities, including examples shown are non-GAAP measures. See Non-GAAP Measures in the funds flow and other factors, and could differ materially from this
on the slide, currently being evaluated and which may be subject Advisories. Targets based on current business plans and assumption. See Forward-Looking Statements in the Advisories.
to Board of Directors’, counterparty and regulatory approval. business environment expectations. Actual results may differ (3) Refers to approximately $5 billion of shares repurchased under
There can be no assurance these opportunities will be pursued or materially from these targets. See Forward-Looking Statements in Suncor’s normal course issuer bid (NCIB) programs from May 2,
if pursued that they will result in the expected benefits. See the Advisories. 2017 to December 31, 2018.
Forward-Looking Statements in the Advisories. Slide 11-------------------------------------------------------------- (4) Refers to Suncor’s announced share repurchase program of $2.0
(2) Free funds flow, previously referred to as free cash flow, is (1) Discretionary free funds flow, previously referred to as billion, effective March 1, 2019. Suncor’s share repurchases are
calculated by taking funds from operations (FFO) and subtracting discretionary free cash flow, is calculated by taking funds from opportunistic. The actual number of shares that will be
capital expenditures, including capitalized interest. Free funds flow operations (FFO) and subtracting sustaining capital, inclusive of repurchased and the timing of any such purchases will be
is a non-GAAP measure. See Non-GAAP Measures in the associated capitalized interest, and dividends. Discretionary free determined by Suncor and will depend on market conditions,
Advisories. funds flow is a non-GAAP measure. See Non-GAAP Measures in funds flow and other factors, and could differ materially from this
(3) Based on company’s current business plans and the current the Advisories. amount. See Forward-Looking Statements in the Advisories.
business environment, which are subject to change. Actual results (2) Funds from operations (FFO) is defined as cash flow provided by
may differ materially. See Forward-Looking Statements in the operating activities excluding changes in non-cash working continued …
Advisories. capital. Funds from operations is a non-GAAP financial measure.
(4) Refers to Autonomous Haulage Systems (AHS). See Non-GAAP Measures in the Advisories.
(5) Refers to Permanent Aquatic Storage Structure (PASS). (3) WTI pricing for 2015-2018 are actual averages for eachYou can also read
