Page 7 - Suncor AR English

The end of one year and the start of another is always a Performance Highlights:
time to relect. Perhaps one of the things I am most struck
$6.4 • $900 million less than our
by is how we are all connected through the global supply billion
of and demand for energy.
original budget.
•
The third consecutive year our
2013 actual capital expenditures
In 2013, the world’s population continued to expand and (excluding capitalized interest)
capital program spending has
current growth trends show our globe growing to nine come in under budget.

billion people before the middle of this century. With that
growing population comes an increased demand for energy. >$2.6• We have generated in excess of $8
billionbillion in free cash low over the
In fact, the International Energy Agency predicts that, by
last three years, allowing Suncor
2035, demand for energy will increase by over 30%.
free cash low for three
to steadily increase its return of
Suncor is uniquely positioned to provide a portion of consecutive years
cash to shareholders.

the energy that the world needs.

History has demonstrated that access to energy increases 600• By the end of 2014, we expect to
quality of life, and we will need all forms of energy as we mboe/d have the ability to move more than
600,000 boe/d to our reineries
seek to provide that quality of life to the world’s population.
market access and takeaway capacity
and other globally priced markets
As the CEO of Suncor, I am committed to ensuring Suncor across North America.
develops the resources we steward in the most responsible

way possible. We can do this while creating value for
shareholders, employees, the communities in which we By focusing on our core operations, cost management and

operate and for Canada as a whole.
prudent, low-risk growth, we continued to maintain a rock
solid balance sheet, with a decreasing net debt balance and
In Canada, we are blessed with a strong regulatory regime.
improving return on capital employed.
Together, with this regime, we are committed to continually
improving our industry’s environmental performance by Suncor achieved production of 562,400 boe/d in 2013, which

dedicating people and inancial resources to technology included 392,500 bbls/d from Oil Sands and 169,900 boe/d
and innovation. It is within this context that I believe Suncor from Exploration and Production. After safely completing

can remain trusted stewards of our natural resources.
a large turnaround on our Upgrader 1, Oil Sands production
(excluding Syncrude) in the fourth quarter of 2013 reached
Suncor has an enviable resource base – including an
record levels of 409,600 bbls/d.
unparalleled position in Canada’s oil sands, one of the
largest resource basins in the world. Suncor is also one of In 2013, Suncor’s integrated model allowed us to capture

very few energy companies to operate across the value chain approximately 88% of global commodity pricing for our
– from resource extraction and upgrading to midstream production. As we commenced 2014, Suncor’s market

logistics to reining and marketing. This breadth allows us
access was further enhanced by the addition of rail facilities
to maximize the value of our production and effectively at the Montreal reinery and the commencement of shipping

respond to changing market conditions, geopolitics and on TransCanada’s Gulf Coast Pipeline. Our offshore and
the global economy.
international production continues to be sold into premium-

priced markets.
2013: Building Shareholder Value
The end result is that Suncor remains strongly positioned
Suncor’s integrated business model, along with a strong
to fund growth from internal resources while steadily
focus on execution, continued to generate signiicant increasing the return of cash to shareholders.
shareholder value in 2013. Operating earnings for the year

were $4.700 billion and cash low from operations was Operational Excellence
$9.412 billion.
Safe, reliable and environmentally responsible operations

The last quarter of the year marked the tenth consecutive are integral to our success. Operational excellence is
quarter in which our cash low from operations topped about doing the right work, the right way, every time –

$2.2 billion. With free cash low of more than $2.6 billion, and I believe it’s key to creating sustainable long-term
Suncor once again led its Canadian industry peers by a shareholder value.

wide margin in 2013.
At Suncor, we’ve been working hard to continually raise
the bar on all aspects of operational performance using

consistently applied standards and practices.

SUNCOR ENERGY INC. ANNUAL REPORT 2013 3