ISA Calgary September 26, 2013
Canada s leading integrated energy company Focused on profitable growth and returning cash to shareholders The Suncor Advantage Largest reserves in the oil sands (1) Integrated model maximizes the value of production capturing ±95% of world price (2) Capital discipline o 2013 dividend increase of 54% - 5 year CAGR of 30% o $2B share buyback extension o $7.3B capex program expected to be funded from cash flow from operations o Strong balance sheet Operational excellence o Oil Sands cash operating costs trending below $35/bbl (4) o Reliability improving targeting 90%+ facilities utilization Profitable growth plan o o Near term higher return oil sands debottleneck projects Longer term offshore, in situ replication, PFT mines Sustainable development o Aggressive goals for water usage, land reclamation, air emissions and energy intensity Over 34 years of production at current rates (3) Proved plus Probable Reserves Contingent Resources 2 (1) Source: Sproule Canadian Oil & Gas Reserves 2011 Chart (2) Based on Suncor s crude oil and liquids production volumes for the 12 months ended March 31, 2013. (3) Assumes that all 6.9 billion boe of proved and probable reserves are produced at a rate of 549,100 boe per day, Suncor s 2012 production rate. In relation to contingent resources, the numbers provided are gross and a best estimate.
Suncor s operations Upstream, mid-stream and downstream 3
Profitable portfolio of oil producing assets Growing oil sands business with complementary upstream & downstream operations Circles are scaled to relative capacities. 4
Suncor Strategy 5
Suncor Petro-Canada Merger Merger Date: August 1, 2009 Suncor Pre-merger: Fort McMurray operations Mining, extraction, upgrading, In-situ 2 refineries Sarnia, Commerce City (Denver) Pipeline operations Ontario retail network - Sunoco Renewable fuels wind, ethanol Petro-Canada Pre-merger: 2 refineries (Edmonton, Montreal) and Lubricants (Mississauga) International Upstream assets East Coast, North Sea, North Africa National Retail & Wholesale networks Petro-Canada Natural Gas assets
Refining & Marketing optimizing the oil sands barrel Industry Leading Performance 20 15 R&M Net Earnings (1) (US dollars per barrel of capacity) # Suncor (# rank among peers (2) ) Top quartile Median of peers Bottom quartile 1 1 Edmonton Refinery (140 kb/d) - 100% oil sands integration -35 kb/d heavy feedstock Sarnia Refinery (85 kb/d) - approximately 75% synthetic crude oil Montreal Refinery (137 kb/d) - potential to convert to 100% inland crude diet Denver (98 kb/d) - up to 15 kb/d sour synthetic in addition to local crudes Mississauga Lubricants Plant (24 kb/d) - Montreal and offshore feedstock 10 1 1 1 1 5 1 1 2 1 2 3 0 4-5 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2009 2010 2011 2012 7
Edmonton Refinery Overview 8 140,000 bpd Crude Capacity Sour & Sweet Synthetic, Bitumen Primary Products Gasoline & Diesel 247 hectares - operating area covers approximately 193 hectares including tankage 491 employees about 2/3 are CEP unionized 8
Refinery Fast Facts Refinery has been on site since 1951 Original 10 kbpd plant constructed by British American Oil Co. total cost $8M Refinery upgraded by Gulf in 1971 80 kbpd at a cost of $80M 46 kbpd Syncrude processing units added in 1981 $275M Facilities to remove sulfur from gasoline and diesel added in 2004 and 2006 at a cost of $1,400M Gulf Canada rebuild in early 1970 s was to take advantage of IPL/APPL product pipelines across Western Canada and allow consolidation of refining to Edmonton area Up to 250 regular contractors to support refinery operation Major construction project 2006 2008 RCP (Refinery Conversion Project) to change crude feedstock to be 100% Alberta bitumen based Construction manpower peaked at over 7,000 people per day RCP capital investment totaled $2,700 M Total Project Investment of $4.1 B over the 2002 2008 period 9 9
Edmonton s Distribution Orbit Map 10
Since 2004 Significant Changes at Edmonton Pre RCP Operation Post RCP Operation 60% Conventional Edmonton Refinery Gasoline Distillate 35% Sour Syncrude 25% Bitumen Edmonton Refinery Gasoline Distillate 40% Sweet Syncrude 40% Sweet Syncrude Refinery Conversion Project (RCP), started up in November 2008, completed the conversion of Edmonton Refinery to 100% Oil Sands- based crude
Post-RCP Challenges 18 months of operational challenges following late-2008 startup Operational Improvements made as a result of: Ongoing investments Operational familiarity Additional Training Operational Discipline Re-design and re-work Achievements recognized with the refinery being the recipient of the Suncor President s Operational Excellence (POEA) award in November 2012 12
Sustainable development 13
Gold Bar Recycled Water Line Since 2005 Suncor (originally a Petro-Canada project) has used up to 15 ML/day of treated, recycled municipal wastewater as boiler feedwater and for use in hydrogen production. This innovative project required the construction of advanced ultrafiltration membrane technology at the EPCOR Gold Bar Waste Water Treatment facility and a 5.5 km pipeline to deliver the water to the refinery This project created a cost-effective and timely solution to the refinery s need for additional water without requiring additional facilities to be constructed to withdraw additonal water from the North Saskatchewan River. This project received numerous awards including an Emerald award for Environmental Excellence in 2007 14
Environmental Focus ISO 14001 Sustainability and Environmental performance is key and Edmonton Refinery s Environmental Management System is ISO14001 registered Continual Improvement Flaring reduction Spill reduction Focus on Loss of Containment events Waste reduction Water use reduction Epcor Goldbar recycled water Sour water strippers Discharge to municipal wastewater treatment plant Disposal well discharge reduction Stakeholder relations Pollution Prevention Emissions management (SO2, NOx, GHG) Regulatory Compliance Reduce impact of upsets Flaring Opacity Releases Odors 15 15
Quality Management Systeml ISO 9001:2008 Certified Internationally Recognized Standard Focuses on Product Quality and Continual Improvement Refinery Processes Audited Regularly By Registrar By Suncor By Third Party Contractor By Environment Canada 16
Edmonton Refinery Economic Impacts One of the largest taxpayers in Strathcona County Significant annual expenditures on Maintenance and Capital Investments Maintenance Turnaround activities require 1000+ contract tradespersons for 4 5 weeks, occurring almost annually Over 600 fuel trucks loaded per day to distribute fuel across Alberta and to northern Canada locations Current top hourly wage rate is over $51.00/hr. (approx. $107,000 annually). Latest agreement provides increases of 3.25%, 3.5% and 3.75% over the 2013 2015 period 10
Sustainable development 18
Community Investment - Suncor Energy Foundation Since its inception in 1998, the Suncor Energy Foundation has invested more than $84 million in charitable organizations across Canada In June of 2012, $500,000 was donated to the Edmonton Jerry Forbes Centre for Community Spirit through the Suncor Energy Foundation $1.5 million was pledged to the Southern Alberta flood relief program in July 2013 14
Value-Added in Canada 20 Suncor has made significant investments in our three Canadian refineries in recent years which provided thousands of jobs in local refining communities and across the country. Hundreds of millions of dollars to meet environmental regulations including low sulphur gasoline and diesel and reduction of benzene in gasoline. Hundreds of millions of dollars annually to improve the ongoing safety and reliability of our operations. Billions of dollars to improve competitiveness - principally at Edmonton (140 KBPD crude capacity) and Sarnia (85 KBPD crude capacity).
Suncor employment and spend in Canada 0 FTE $7.6 million 1832 FTE $1.22 billion 0 FTE $3.1 million 527 FTE $376.6 million 152 FTE $42.8 million 13 FTE $25.2 million 311 FTE $190.5 million 8673 FTE $7.56 billion 272 FTE $230 million 2 FTE $300 thousand 12 FTE $10.3 million 19 FTE $73.7 million FTE Full Time Equivalent jobs Source: Suncor Supply Chain and Human Resources 2010 21
Value-Added in Canada We continue to make investments at our existing facilities to ensure the reliability of our operations and to make incremental gains in production capacity this process is called debottlenecking We invest millions of dollars a year in preventative maintenance programs at our facilities to ensure that we can operate safely and reliably. These programs employ hundreds of contractors at each of our sites and are a significant contributor to the local economy Overall, improving our existing operations and maintaining the competitiveness of our refineries is the priority for our downstream business 22