Page 45 - MIC 2014 - English

Profitable Growth through Cost Control and Project Execution

2013 Performance Summary
2013 Goals
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Cost control remained a major focus for Suncor in 2013 through Mr. Williams’ • Improve operational performance
leadership. The company continues to manage cash operating costs and remains and cost control at Oil Sands
confident in its ability to reach guidance targets for 2014. The Board notes
operations.
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Mr. Williams’ work to ensure ongoing improvements in operational performance is • Continue to drive improvements in
laying the foundation for further reductions in costs.
growth projects.
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Mr. Williams has been unwavering in his focus on ensuring capital is appropriately • Increase returns by managing
deployed for the benefit of the company and its shareholders. This has been
highlighted by the decision not to proceed with the Voyageur project, the inflation, scope control, field
execution, cost control and quality.
divestiture of the majority of the company’s North American Onshore business, ................................................................................
and growth capital decisions that have been focused on economically attractive • Develop market access solutions.
debottlenecking and expansion initiatives.

Through Mr. Williams’ leadership, Suncor is also advancing the Fort Hills oil sands 2013 Performance Highlights
mining project with its co-venture partners. The Board also notes that Suncor has ................................................................................
• Ongoing focus on cash operating
delivered almost $20 billion worth of capital expenditures at or below projected costs per barrel at Oil Sands
cost in the past four years.
operations.
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Maintenance work continued across the company’s operations. The Board is • Focus on prudent use of capital,
confident in Mr. Williams’ ability to drive operational performance and reliability,
noting that maintenance work performed in 2013 across the company’s operations including on economically attractive
debottlenecking and expansion
will position Suncor well for strong performance in 2014.
initiatives.
The Board observes that Mr. Williams continues to ensure the company monitors ................................................................................
• Fort Hills oil sands mining project
metrics to guide achievement of its strategy, including ROCE, TSR, annual growth announced, leveraging existing Oil
targets, reliability and cost targets.
Sands infrastructure.
................................................................................
While public debate continued on the development of pipeline infrastructure,
Mr. Williams ensured that Suncor had a well-developed market access plan which • Well-developed market access plan
allowed for access to world pricing, building on the company’s mid-stream logistics put into place, building on
mid-stream logistics expertise
expertise and capability, including pipeline operations, storage and contracted rail and capability.
transportation.

Mr. Williams has also ensured significant stakeholder engagement in partnership
with pipeline companies to support new market access projects, notably Northern
Gateway and Line 9 reversal.

SUNCOR ENERGY INC. MANAGEMENT PROXY CIRCULAR 2014 43