Suncor FMCA Presentation February 25, 2016 1 3/3/2016 Canadas - - PowerPoint PPT Presentation

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3/3/2016 Suncor FMCA Presentation February 25, 2016 1 3/3/2016 Canadas largest integrated energy company Growing oil sands business with complementary upstream & downstream operations $63B enterprise value Dec 31, 2015 Fort

SLIDE 1

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Suncor – FMCA Presentation

February 25, 2016

SLIDE 2

3/3/2016 2

Canada’s largest integrated energy company

Growing oil sands business with complementary upstream & downstream operations

$63B

enterprise value

Dec 31, 2015

578 mboe/d

99% oil production

2015 Actuals

refining capacity

462 mb/d

liquidity

cash & cash equivalents ($4.0B) plus available credit facilities as at Dec. 31, 2015

$11B

cash flow from operations

2015 Actuals

$6.8B

capital expenditures

2015 Actuals excluding capitalized interest

$6.2B 35 years

2P reserve life index

as at December 31, 2014 East Coast North Sea Stavanger London Aberdeen Buzzard Golden Eagle Denver Sarnia Montreal

St. John’s

Hibernia Terra Nova* Hebron White Rose Fort McMurray Base Plant & Mine* Firebag* Syncrude MacKay River* Fort Hills* Oil Sands Head office Calgary Regional office Upstream facility *operated Downstream facility Mississauga Houston Circles are scaled to relative net capacities in boe/d Edmonton

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Oil sands portfolio

Future opportunities

Lewis (SU WI 100%) Meadow Creek (SU WI 75%)

MacKay River

38,000 b/d capacity Suncor working interest 100% 542 mmbbls 2P reserves

Base Plant

350,000 b/d capacity Suncor working interest 100% 1,766 mmbbls 2P reserves

Syncrude

Syncrude operated 42,000 b/d capacity (SU WI) Suncor working interest 12% 525 mmbbls 2P reserves (SU WI)

Firebag

203,000 b/d capacity Suncor working interest 100% 2,634 mmbbls 2P reserves

Fort Hills

Suncor operated 91,000 b/d capacity (planned, SU WI) Suncor working interest 50.8% 1,253 mmbbls 2P reserves (SU WI)

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SCO, diesel and bitumen to market

Oil Sands production up to 600 mb/d before the end of the decade

Fort Hills

Increased SU WI to 50.8%
Under construction
Capacity2: 91 mb/d (SU WI) PFT bitumen

Base Upgrading Operations

> 10 mb/d in potential reliability improvements
Capacity2: 350 mb/d SCO
22% shrinkage factor

Firebag

23 mb/d debottleneck completed in Q4 2015
Capacity2: 203 mb/d bitumen

Logistics

Future growth projects will be integrated with existing logistics infrastructure

Syncrude

12% SU WI
Capacity2: 42 mb/d (SU WI) SCO

MacKay River

8 mb/d debottleneck reached in Q4 2015
Capacity2: 38 mb/d bitumen

Base Mine Extraction

Extraction debottleneck complete
Notional3 Capacity2: 325 to 350 mb/d bitumen

Debottlenecks, expansions and growth projects expected to raise total Oil Sands production from 463 mb/d (2015) up to 600mb/d.

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Market access strategy for inland oil production

Suncor has over 600 mb/d of near-term access to globally priced markets

Current1

Existing pipelines

and hubs

80+ mb/d rail loading

and offloading

Suncor Refinery
Marine opportunities

for inland oil

Line 9 to Montreal

Denver Edmonton Sarnia Montreal Upgrader Diesel

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20 40 60 80 100 120

1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

US$/bbl

Oil price volatility

* Source EIA

Brent crude oil price: History of volatility

Gulf War 1 Asian financial crisis Financial crisis 9/11 OPEC Market Share OPEC Market Share

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Disciplined capital and operating cost management

Suncor Capex & cash flow from operations

C$ billions

CFOPs1 Capital Expenditures2

Oil Sands

Prices and cash operating costs

C$/bbl

Oil Sands Average3

Sales Price Cash Operating Costs1

per barrel

39.05 37.05 37.00 33.80 28.20

25 50 75 100 2011 2012 2013 2014 2015

2011 2012 2013 2014 2015

39.05 37.05 37.00 33.80 27.85 6.3 6.4 6.4 6.5 6.2 9.7 9.7 9.4 9.1 6.8

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Oil Sands Cost Structure Per Barrel – End of 2015

5 10 15 20 25 30 35 40 45 Royalties Reclamation Capital Expenses Operating Expenses

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Municipal Costs

Municipal taxes have increased yearly for industry exacerbating the erosion of industry competitiveness

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Firebag Debottle Update

Repurpose of Voyageur equipment

Firebag debottleneck - Produced water cooling unit

203mb/d

Firebag plant capacity rerate

2.8

current field wide SOR

<$5k/bbl debottleneck cost 3 Years

acceleration of debottleneck

95%

expected plant reliability Scope

debottleneck of produced water cooling facilities
rerate of de-oiling and steam generation units
reduced field wide SOR
infill wells continue to outperform

Cost effective debottleneck supported 23 kbpd plant capacity expansion

Forward sustaining capital requirement

sub-surface: alignment of well pad development timing

with increased nameplate capacity

surface: facility investment planned near 2020 to

maintain production capacity at increasing SORs

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2016 Spring Planned Maintenance

Key dates

Pre-execution: February 1 – March 25
Execution: March 31 – May 17
Post-execution: May 18 – July 31

Scope of work Core Upgrader 2 assets

Regulatory/inspections, catalyst renewal/

regeneration, necessary reliability repairs, and critical project scope

Workforce size

~2,500 general and specialty contractors,

and maintenance support

Production impact

250,000 barrels per day

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Fort Hills Development Update

50.8% Suncor working interest

additional 10% working interest as at November 2015

91mb/d

production capacity

net to Suncor

21M+

construction hours

without environmental or regulatory enforcement action

96%

engineering complete

as at December 31, 2015

51%

construction complete

as at December 31, 2015

capital cost estimate

net to Suncor from project sanction to first oil

$6.5B

SLIDE 13

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Suncor’s proposed acquisition of Canadian Oil Sands Limited

The Offer

COS board supported offer of 0.28 SU shares per COS share. The transaction was valued at $6.6 B at the time of agreement.

Financial

19% net debt to capitalization on a pro-forma basis as at September 30, 2015. Suncor to issue ~136 M shares assuming 100% of COS shares are acquired.

Operating

Suncor would increase it’s working interest in Syncrude (capacity 350 mb/d SCO) from 12% to 48.74%. 20% increase in 2P reserves to 9.1 billion barrels.

Synergies

Explore regional synergies and efficiencies with respect to operations, capital investment and technology