Page 5 - Suncor 360 - Fall 2017

NEWS
03
FALL 2017
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MacKay River
Syncrude
Rose
Oil Sands
Fort Hills
East Coast Canada
Golden Eagle
Buzzard Aberdeen
United Kingdom
Operated
Norway
Stavanger London
Non-operated
Firebag
Base Plant
& Millennium
Edmonton Calgary
St. John’s Hibernia White
Montreal
Terra Hebron Nova
Mississauga
Fort McMurray
Houston
Q2 AT A GLANCE
Head office Refining capacity
Regional office
Denver / Commerce City
Sarnia
Suncor’s integrated model and continued focus on cost reduction supported our results in the second quarter. Strong performance from our offshore and downstream businesses helped offset extensive
Oil Sands maintenance this quarter, and we anticipate strong Oil Sands asset performance going forward.
What happened across our operations...
Oil Sands
• Operating earnings* for Oil Sands operations were $37 million, compared to an operating loss* of $797 million in the prior year quarter. The improvement was due to increased crude oil production combined with higher crude price realizations, partially offset by the avoidance of operating costs during the second quarter of 2016 while operations were shut in due to forest res in the Fort McMurray area and higher natural gas costs.
• Total Oil Sands production was 413,600 barrels per day (bbls/d) compared to 213,100 bbls/d in the prior year period, with the prior year quarter being signi cantly impacted by the forest res in the Fort McMurray area.
Re ning & Marketing
• Re ning and Marketing operating earnings* were $346 million, compared to $689 million in the prior year quarter. The decrease was primarily due to the realization of a rst-in, rst-out (FIFO) loss, compared to a FIFO gain in the prior year period, combined with the sale of Suncor’s lubricants business in the rst quarter of 2017.
• Average re nery crude throughput improved to 435,500 (bbls/d) from 400,200 bbls/d in the prior year quarter.
Exploration & Production
• E&P operating earnings* increased to
$182 million from $26 million in the prior year quarter as a result of higher production, improved crude price realizations and the impairment of the Beta development in
Norway in the second quarter of 2016, partially offset by higher royalties.
• Production volumes in E&P increased to 125,500 barrels of oil equivalent per day (boe/d), compared to 117,600 boe/d in the prior year quarter, primarily due to planned maintenance at Terra Nova in the prior year quarter, higher production at Hibernia and production from Libya, partially offset by natural declines at Buzzard.
• The Hebron platform was successfully towed out to its nal offshore location and safely positioned on the sea oor in the second quarter of 2017. Drilling activities are on schedule and rst oil remains on track for the end of 2017.
• The West White Rose Project was sanctioned during the second quarter of 2017. Suncor
is a non-operating partner with a blended working interest of approximately 26 per cent. First oil is targeted for 2022, with the company’s share of peak oil production estimated to be 20,000 boe/d.
Major Projects
• As of the end of Q2 2017, the Fort Hills project is 90 per cent complete, with turnover of the ore processing and main primary extraction assets to operations in the period. The project cost estimate is on track with rst oil expected at the end of 2017. In addition, the East
Tank Farm Development was commissioned subsequent to the end of the quarter and will support Fort Hills operations following rst oil.
Q2 by the numbers
$1.627 billion funds from operations* compared to $916 million in the prior year quarter
$199 million operating earnings*
compared to an operating loss of $565 million in the prior year quarter
$27.80 Oil Sands operations cash operating costs per barrel*, a decrease from $46.80/bbl in the prior year quarter
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Get the full details on our quarterly nancial and operating results at suncor.com > Latest Suncor News > Suncor Energy reports second quarter results
* Non-GAAP measure. See the Advisories on P. 1 of this publication.
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Circles are scaled to relative net capacity