Page 61 - Suncor AR English

A summary of available and utilized credit facilities is as Change in Net Debt

follows:
($ millions)

Net debt – December 31, 2012 6 639
At December 31, 2013 ($ millions)
........................................................................................................................
Fully revolving for a period of one year after Decrease in net debt
(383)

term-out date (November 2014)
........................................................................................................................
2 000
Net debt – December 31, 2013
6 256

Fully revolving and expires in 2015 900
........................................................................................................................
Decrease in net debt
........................................................................................................................
Fully revolving for a period of three years and
Cash flow from operations 9 412
expires in 2016 3 000
........................................................................................................................
........................................................................................................................
Capital and exploration expenditures and
other investments (6 795)
Can be terminated at any time at the option
of the lenders
288 ........................................................................................................................
Acquisition (515)
Total available credit facilities
6 188
........................................................................................................................
........................................................................................................................
Proceeds from divestitures 943
Less:
........................................................................................................................
........................................................................................................................
Divestiture of pipeline contract (76)
Credit facilities supporting outstanding
........................................................................................................................
Dividends less proceeds from exercise of
commercial paper 798
........................................................................................................................
share options (983)
........................................................................................................................
Credit facilities supporting standby letters of
credit
854 Repurchase of common shares (1 675)
........................................................................................................................

Total unutilized credit facilities
4 536
Change in non-cash working capital 598
........................................................................................................................

Foreign exchange on cash, debt and other
Total Debt to Total Debt Plus Shareholders’ Equity
balances
(526)

Suncor is subject to financial and operating covenants 383
related to its bank debt and public market debt. Failure to

meet the terms of one or more of these covenants may At December 31, 2013, Suncor’s net debt was $6.256 billion,
constitute an Event of Default as defined in the respective
compared to $6.639 billion at December 31, 2012. During
debt agreements, potentially resulting in accelerated 2013, net debt decreased by $383 million, largely due to
repayment of one or more of the debt obligations. The
cash flow from operations that exceeded capital and
company is in compliance with its financial covenant that exploration expenditures, proceeds from the sale of the
requires total debt to not exceed 65% of its total debt plus
conventional natural gas business, partially offset by cash
shareholders’ equity. At December 31, 2013, total debt to returned to shareholders in the form of share repurchases
total debt plus shareholders’ equity was 22%
and dividends, the acquisition of Total E&P’s interest in
(December 31, 2012 – 22%). The company is also currently VULP and the impact of the weakening Canadian dollar
in compliance with all operating covenants.
relative to the U.S. dollar on the valuation of
U.S. denominated debt.
At December 31
($ millions, except as noted)
2013 2012 For the year ended December 31, 2013, the company’s net

Short-term debt
798 775
debt to cash flow from operations measure was 0.7 times,
which met management’s target of less than 2.0 times.
........................................................................................................................
Current portion of long-term debt 457 311
........................................................................................................................
Credit Ratings
Long-term debt 10 203 9 938

The following information regarding the company’s credit Total debt 11 458 11 024
ratings is provided as it relates to the company’s cost of ........................................................................................................................
Less: Cash and cash equivalents 5 202
4 385
funds and liquidity and indicates whether or not the
company’s credit ratings have changed. In particular, the Net debt
6 256 6 639

company’s ability to access unsecured funding markets and Shareholders’ equity
41 180 39 215
to engage in certain collateralized business activities on a Total debt plus shareholders’ equity
52 638
50 239

cost-effective basis is primarily dependent upon maintaining Total debt to total debt plus
competitive credit ratings. A lowering of the company’s
shareholders’ equity (%)
22
22
credit rating may also have potentially adverse
consequences for the company’s funding capacity or access
to the capital markets, may affect the company’s ability,

and the cost, to enter into normal course derivative or

SUNCOR ENERGY INC. ANNUAL REPORT 2013 57