All monetary figures are in Canadian greenbacks.

CALGARY, Alberta – Following the August 14 incident at its Base Plant operations, in gentle of known efficiency development alternatives at its Firebag operation, and bringing on the second one educate of manufacturing at Fort Hills, Suncor is nowadays offering an operational update and revised 2020 guidance.

On August 16, 2020, Suncor reported it had skilled a fireplace on the secondary extraction amenities of its Base Plant mine.  On August 29th, manufacturing was once restored to 165,000 barrels in step with day (bbls/d) of mined bitumen. Although preliminary maintenance can permit the mine to function at complete charges, manufacturing has been limited to regulate bitumen high quality into the upgraders.  Production is anticipated to proceed to ramp up and will reach complete mining charges of roughly 300,000 bbls/d via the center of the fourth quarter, as bitumen remedy amenities go back to complete operation.  During this era of lowered manufacturing, decided on repairs actions, in the beginning scheduled for later within the 12 months, had been sped up and are mirrored within the up to date manufacturing guidance. Repair prices are integrated inside the company capital guidance; the vast majority of the restore prices are anticipated to be reimbursed thru insurance coverage proceeds to be gained in 2021. Full 12 months Oil Sands Operations money working prices guidance(1) has been revised to $28.00 – $31.00 in step with barrel.

Starting in overdue September, Firebag in-situ manufacturing charges can be lowered to 110,000 bbls/d for roughly 4 weeks as Suncor hurries up repairs in the beginning scheduled for 2022, and to permit us to extend the capability of the power via totally integrating the brand new, incremental emulsion dealing with and steam infrastructure.  Following of completion of this paintings, Firebag nameplate capability is predicted to extend via 12,000 bbls/d to 215,000 bbls/d, and is anticipated to be generating at standard capability usage (~95%) via early November. The capital expenditure required for this paintings is integrated inside of capital guidance.

Suncor is operating with the Fort Hills companions to restart the second one number one extraction educate in September, with preliminary gross manufacturing of roughly 120,000 to 130,000 bbls/d. This lays the basis for advanced price effectiveness thru optimization of the mine fleet, with out the usage of further contractors, and comprises the of completion of the entire deployment of self reliant haul vans via the tip of 2020. At this preliminary manufacturing stage, Suncor expects to retain the entire prior to now introduced maintaining capital financial savings and roughly 90% of the estimated working prices financial savings. 2020 manufacturing guidance has been up to date to 60,000 – 65,000 bbls/d, with a discount to the Fort Hills money working prices(1) in step with barrel vary via $2 in step with barrel, to $32.00 – $35.00. Once the second one educate is working, the homeowners will evaluation additional will increase in manufacturing.

Syncrude 2020 deliberate repairs program is whole, and the asset is being returned to standard operations. The interconnecting pipelines are not off course for commissioning in This fall. The Syncrude money working prices(1) in step with barrel vary has been lowered to $34.00 – $37.00, in response to 12 months thus far efficiency, decrease working prices and our expectancies for the stability of the 12 months.

“Despite the operational incident and all the challenges of 2020 – unprecedented drop in oil prices, global pandemic and economic slowdown – Suncor has continued to focus on safety and maximizing value through enhanced performance and lowering costs,” mentioned Suncor president and leader government officer Mark Little. “We’re pleased to be making progress on lowering costs at Fort Hills and Syncrude; we’ve opportunistically advanced maintenance at Base Plant and Firebag, brought on additional capacity at Firebag, and we believe this disciplined and strategic approach lays the foundation for strong performance in 2021.”

Due to the aid in 2020 capital expenditures and the present deferral of the Terra Nova Asset Life Extension mission, E&P manufacturing guidance has been up to date to replicate decrease manufacturing charges.

Strengthening momentum within the Downstream trade efficiency continues, and is consistent with the throughput guidance for refinery usage and subtle gross sales.

Following those operational updates, manufacturing estimates for the 0.33 quarter are expected to be 305,000 – 320,000 bbls/d for Oil Sands Operations; that is made from 250,000 – 265,000 bbls/d of man-made crude oil and roughly 55,000 bbls/d of bitumen. Full 12 months company manufacturing guidance has been revised to 680,000 – 710,000 bbls/d.

(1) Non-GAAP monetary measures. See the Non-GAAP Financial Measures phase of this News unlock.

Capital Expenditures (C$ hundreds of thousands(1)
2020 Updated Full Year Outlook
September 7, 2020
% Economic
Investment (2)
Upstream Oil Sands2,600 – 2,80025%
Upstream E&P450 – 50095%
Total Upstream3,050 – 3,30040%
Downstream450 – 55020%
Corporate100 – 15080%
Total3,600 – 4,00040% 
    
1. Capital expenditures exclude capitalized passion of roughly $120 million.
2. The stability of capital expenditures represents Asset Sustainment and Maintenance capital expenditures. For definitions of Economic Investment and Asset Sustainment and Maintenance capital expenditures, see the Capital Investment Update phase of Suncor’s Management’s Discussion and Analysis dated July 22, 2020 (the MD&A).

Production & Refinery Utilization (as of September 7, 2020)
 2020 Updated
Full Year Outlook
Suncor Total Production (boe/d) (3)680,000 – 710,000 (4) 
Oil Sands Operations (bbls/d) 355,000 – 380,000 (5)
Synthetic Crude Oil (bbls/d)295,000 – 310,000
Bitumen (bbls/d)60,000 – 70,000
Fort Hills (bbls/d) Suncor running passion of 54.11%60,000 – 65,000
Syncrude (bbls/d) Suncor running passion of 58.74%160,000 – 175,000
Exploration & Production (boe/d)100,000 – 110,000 (4)
Suncor Refinery Throughput (bbls/d)390,000 – 420,000 
Suncor Refinery Utilization84% – 91% (6) 
Refined Product Sales (bbls/d)500,000 – 530,000 
   
3. Barrels of oil an identical in step with day (boe/d)
4. At the time of e-newsletter, manufacturing in Libya remains to be suffering from political unrest and subsequently no forward-looking manufacturing for Libya is factored into the Exploration and Production and Suncor Total Production guidance. Production levels for Oil Sands operations, Fort Hills, Syncrude and Exploration and Production don’t seem to be supposed so as to add to equivalent Suncor overall manufacturing.
5. Oil Sands operations manufacturing comprises artificial crude oil, diesel, and bitumen and excludes Fort Hills PFT bitumen and Syncrude artificial crude oil manufacturing. These levels replicate the built-in upgrading and bitumen manufacturing efficiency possibility.
6. Refinery usage is in response to the next crude processing capacities: Montreal – 137,000 bbls/d; Sarnia – 85,000 bbls/d; Edmonton – 142,000 bbls/d; and Commerce City – 98,000 bbls/d.
Advisories & Contact

Legal Advisory – Forward-Looking Information

This information unlock accommodates sure forward-looking data and forward-looking statements (jointly referred to herein as “forward-looking statements”) inside the that means of acceptable Canadian and U.S. securities rules. Forward-looking statements on this information unlock come with: Suncor’s expectation that manufacturing at its Base Plant operations will proceed to ramp as much as roughly 165,000 bbls/d via the center of September and reach complete mining charges of roughly 300,000 bbls/d via the center of the fourth quarter of 2020; statements referring to deliberate repairs, together with the timing and prices thereof; Suncor’s expectation that almost all of the restore prices from the incident at its Base Plant operations can be reimbursed thru insurance coverage proceeds; statements about Firebag, together with that during situ manufacturing charges can be lowered to 110,000 bbls/d for roughly 4 weeks and that it is going to produce at complete nameplate capability via early November; Suncor’s trust that its disciplined and strategic way of decreasing prices at Fort Hills and Syncrude and the development of repairs at Base Plant and Firebag will lay a basis for sturdy efficiency in 2021; statements about Fort Hills, together with the possible to restart the second one number one extraction educate in September with manufacturing ramping as much as roughly 120,000 – 130,000 bbls/d via the tip of 2020 which is able to lay the basis for advanced price effectiveness thru optimization of the mine fleet, with out the usage of contractors, and the entire deployment of self reliant haul vans via the tip of 2020 and that, via working Fort Hills at those ranges, Suncor will retain the entire prior to now introduced maintaining capital financial savings and roughly 90% of the estimated working prices financial savings; Suncor’s expected capital spending program of between $3.6 and $4.zero billion (and expectancies of the place that spending can be directed); Suncor’s expectancies round manufacturing, together with deliberate moderate upstream manufacturing of 680,000 – 710,000 boe/d and deliberate levels for Oil Sands operations (355,000 – 380,000 bbls/d) which is made from 295,000 – 310,000 bbls/d of man-made crude oil and 60,000 – 70,000 bbls/d of bitumen, Suncor’s running passion in Fort Hills (60,000 – 65,000 bbls/d), Suncor’s running passion in Syncrude (160,000 – 175,000 bbls/d) and Exploration and Production (100,000 – 110,000 boe/d); Suncor’s anticipated Oil Sands operations money working prices, projected to be within the vary of $28.00 – $31.00 in step with barrel; anticipated Fort Hills money working prices, projected to be within the vary of $32.00 – $35.00 in step with barrel; anticipated Syncrude money working prices, projected to be within the vary of $34.00 – $37.00 in step with barrel; Suncor’s anticipated Refinery Throughputs (390,000 – 420,000 bbls/d), Refinery Utilization (84% – 91%) and Refined Product Sales (500,000 – 530,000 bbls/d); and an identical statements. Forward-looking statements are in response to Suncor’s present expectancies, estimates, projections and assumptions that have been made via the corporate in gentle of its data to be had on the time the observation was once made and believe Suncor’s enjoy and its belief of ancient tendencies, together with expectancies and assumptions relating to: the accuracy of reserves estimates; the present and attainable adversarial affects of the COVID-19 pandemic, together with the standing of the pandemic and long term waves and any related insurance policies round present trade restrictions, shelter-in-place orders or gatherings of people; commodity costs and passion and foreign currency echange charges; the efficiency of belongings and apparatus; capital efficiencies and price financial savings; acceptable rules and govt insurance policies; long term manufacturing charges; the sufficiency of budgeted capital expenditures in sporting out deliberate actions; the supply and price of labour, services and products and infrastructure; the delight via 0.33 events in their tasks to Suncor; the improvement and execution of tasks; and the receipt, in a well timed way, of regulatory and third-party approvals. Some of the forward-looking statements could also be known via phrases like “guidance”, “outlook”, “will”, “expected”, “estimated”, “anticipate”, “planned”, “believe” and an identical expressions.Forward-looking statements don’t seem to be promises of long term efficiency and contain a lot of dangers and uncertainties, some which might be very similar to different oil and fuel corporations and some which might be distinctive to Suncor. Suncor’s precise effects might fluctuate materially from the ones expressed or implied via its forward-looking statements, so readers are cautioned to not position undue reliance on them.

Assumptions for the Oil Sands operations, Syncrude and Fort Hills 2020 manufacturing outlook come with the ones in relation to reliability and operational potency tasks that the corporate expects will decrease unplanned repairs in 2020. Assumptions for the Exploration and Production 2020 manufacturing outlook come with the ones in relation to reservoir efficiency, drilling effects and facility reliability. Factors that would doubtlessly have an effect on Suncor’s 2020 company guidance come with, however don’t seem to be restricted to:

  • Bitumen provide. Bitumen provide could also be depending on unplanned repairs of mine apparatus and extraction crops, bitumen ore grade high quality, tailings garage and in situ reservoir efficiency.
  • Third-party infrastructure. Production estimates might be negatively impacted via problems with third-party infrastructure, together with pipeline or energy disruptions that can end result within the apportionment of capability, pipeline or third-party facility shutdowns, which might impact the corporate’s skill to provide or marketplace its crude oil.
  • Performance of not too long ago commissioned amenities or smartly pads. Production charges whilst new apparatus is being introduced into carrier are tricky to expect and will also be impacted via unplanned repairs.
  • Unplanned repairs. Production estimates might be negatively impacted if unplanned paintings is needed at any of our mining, extraction, upgrading, in situ processing, refining, herbal fuel processing, pipeline, or offshore belongings.
  • Planned repairs occasions. Production estimates, together with manufacturing combine, might be negatively impacted if deliberate repairs occasions are suffering from sudden occasions or don’t seem to be done successfully. The a hit execution of repairs and start-up of operations for offshore belongings, particularly, could also be impacted via harsh climate stipulations, in particular within the iciness season.
  • Commodity costs. Declines in commodity costs might regulate our manufacturing outlook and/or scale back our capital expenditure plans.
  • Foreign operations. Suncor’s international operations and similar belongings are topic to a lot of political, financial and socio-economic dangers.
  • Government Action. This guidance displays the manufacturing curtailments imposed via the Government of Alberta. Further motion via the Government of Alberta referring to manufacturing curtailment might have an effect on Suncor’s Corporate Guidance and such have an effect on could also be subject material.
  • COVID-19 Pandemic: This guidance is topic to a lot of exterior elements past our keep watch over that would considerably affect this outlook, together with the standing of the COVID-19 pandemic and long term waves, and any related insurance policies round present trade restrictions, shelter-in-place orders, or gatherings of people. As a results of the risky trade atmosphere and the unsure tempo of an financial restoration it’s difficult to decide the whole outlook for crude oil and subtle product call for, which stays dependent at the standing of the COVID-19 pandemic.

Suncor’s Annual Information Form and Annual Report to Shareholders, each and every dated February 26, 2020, Form 40-F dated February 27, 2020, its MD&A and different paperwork Suncor recordsdata every now and then with securities regulatory government describe the hazards, uncertainties, subject material assumptions and different elements that would affect precise effects and such elements are included herein via reference. Copies of those paperwork are to be had at no cost from Suncor at 150 sixth Avenue S.W., Calgary, Alberta T2P 3E3, via calling 1-800-558-9071, or via e mail request to make investments@suncor.com or via relating to the corporate’s profile on SEDAR at sedar.com or EDGAR at sec.gov. Except as required via acceptable securities rules, Suncor disclaims any goal or legal responsibility to publicly update or revise any forward-looking statements, whether or not because of new data, long term occasions or another way.

NON-GAAP FINANCIAL MEASURES

Oil Sands operations money working prices, Fort Hills money working prices and Syncrude money working prices don’t seem to be prescribed via Canadian most often authorised accounting rules (“GAAP”). These non-GAAP monetary measures are integrated as a result of control makes use of the tips to investigate trade efficiency, together with on a in step with barrel foundation, as acceptable, and it can be helpful to buyers at the identical foundation. These non-GAAP monetary measures do not need any standardized that means and, subsequently, are not going to be related to an identical measures introduced via different corporations. These non-GAAP monetary measures must no longer be regarded as in isolation or as an alternative choice to measures of efficiency ready in response to GAAP. These non-GAAP monetary measures are outlined and reconciled within the Non-GAAP Financial Measures phase of the MD&A. Oil Sands operations money working prices of $28.00 – $31.00 in step with barrel is in response to the assumptions that: (i) Suncor will produce 355,000 – 380,000 bbls/d at Oil Sands operations (of which 295,000 – 310,000 bbls/d can be artificial crude oil and 60,000 – 70,000 bbls/d can be bitumen); and (ii) herbal fuel used at Suncor’s Oil Sands operations (AECO – C Spot ($CAD)) can be priced at a median of $2.25/GJ over 2020. Fort Hills money working prices of $32.00 – $35.00 in step with barrel is in response to the assumptions that: (i) Fort Hills manufacturing (internet to Suncor) can be 60,000 – 65,000 bbls/d; and (ii) herbal fuel used at Fort Hills (AECO – C Spot ($CAD)) can be priced at a median of $2.25/GJ over 2020. Syncrude money working prices of $34.00 – $37.00 in step with barrel is in response to the assumptions that: (i) Syncrude will produce 160,000 – 175,000 bbls/d of man-made crude oil (internet to Suncor); and (ii) herbal fuel used at Syncrude (AECO – C Spot ($CAD)) can be priced at a median of $2.25/GJ over 2020. The Syncrude money working prices in step with barrel and Fort Hills money working prices in step with barrel measures is probably not totally related to an identical data calculated via different entities (together with Suncor’s Oil Sands operations money working prices in step with barrel) because of differing operations.

Suncor Energy is Canada’s main built-in power corporate. Suncor’s operations come with oil sands building and upgrading, offshore oil and fuel manufacturing, petroleum refining, and product advertising underneath the Petro-Canada logo. A member of Dow Jones Sustainability indexes, FTSE4Good and CDP, Suncor is operating to responsibly broaden petroleum sources whilst additionally rising a renewable power portfolio. Suncor is indexed at the UN Global Compact 100 inventory index. Suncor’s not unusual stocks (image: SU) are indexed at the Toronto and New York inventory exchanges.

For extra details about Suncor, consult with our site at suncor.com, apply us on Twitter @Suncor or in combination.suncor.com

Media inquiries:
1-833-296-4570
media@suncor.com

Investor inquiries:
800-558-9071
make investments@suncor.com