Suncor Energy not proceeding with Voyageur upgrader project

Suncor Energy not proceeding with Voyageur upgrader project 
CALGARY, ALBERTA -- (Marketwire) -- 03/27/13 -- Suncor Energy today
announced that it is not proceeding with the Voyageur upgrader
project. The decision is the result of a joint strategic and economic
review launched by Suncor and its joint venture partner Total E&P
Canada Ltd in late 2012.  
"Since 2010, market conditions have changed significantly,
challenging the economics of the Voyageur upgrader project," said
Steve Williams, president and chief executive officer. "That's why we
undertook a thorough review of the project to determine whether it
met our criteria for long-term, profitable growth." 
"This decision is in line with our commitment to capital discipline
and our stated plan to allocate capital with priority given to
developing higher-return growth projects and accelerating the return
of cash to shareholders through dividends and share buybacks."  
As a result of not proceeding with the Voyageur upgrader project,
Suncor expects to incur a charge to first quarter 2013 net income and
cash flow from operations of approximately $140 million and $180
million respectively.  
On March 27, 2013, Suncor acquired Total E&P Canada Ltd.'s interest
in the Voyageur Upgrader Limited Partnership for $515 million to gain
full control over the partnerships assets.  
"We are pleased with the value this deal provides to Suncor," said
Williams. "Among other things, we will now be able to exclusively
utilize the partnership assets to continue driving value from our
base business and to support our profitable oil sands growth."  
Forward-looking statements in this news release include the estimated
impact of the above events on the company's first quarter 2013
earnings. The purpose of including this information in this press
release is to assist persons in understanding the expected impact on
earnings associated with the above events; this information may not
be appropriate for other purposes. Suncor has prepared its estimate
of the impact on first quarter 2013 earnings based on judgments,
estimates and assumptions which Suncor believes are reasonable
including judgments, estimates and assumptions relating to the
present value of the partnership assets as well as anticipated costs
and expenses to be incurred as a result of the decision not to
proceed with the project and the associated amount of anticipated
future partnership liabilities. For more information regarding these
judgments, estimates and assumptions as they relate to critical
accounting estimates, please see Suncor's 2012 Annual Report to
Shareholders which are incorporated herein by reference. These
assumptions and factors are not exhaustive. Forward-looking
statements and information are not guarantees of future performance
and involve a number of risks and uncertainties, some that are
similar to other oil and gas companies and some that are unique to
Suncor. Suncor's actual results may differ materially from those
expressed or implied by its forward-looking statements, so readers
are cautioned not to place undue reliance on them.  
Cash flow from operations, which is included in this press release,
is not prescribed by Canadian generally accepted accounting
principles (GAAP). This non-GAAP financial measure does not have any
standardized meaning and therefore is unlikely to be comparable to
similar measures presented by other companies. This non-GAAP
financial measure is included because management uses the information
to analyze operating performance, leverage and liquidity, and should
not be considered in isolation or as a substitute for a measure of
performance prepared in accordance with GAAP. To see how Suncor has
previously defined cash flow from operations and reconciled this
non-GAAP financial measure to cash flow provided by operating
activities, a GAAP measure, see the Non-GAAP Financial Measures
Advisory section of Suncor's Management's Discussion and Analysis
dated February 26, 2013.  
Suncor's Annual Information Form/Form 40-F dated March 1, 2013 and
2012 Annual Report to Shareholders and other documents it files from
time to time with securities regulatory authorities describe the
risks, uncertainties, material assumptions and other factors that
could influence actual results and such factors are incorporated
herein by reference. Copies of these documents are available without
charge from Suncor at 150 6th Avenue S.W., Calgary, Alberta T2P 3E3,
by calling 1-800-558-9071, or by email request to info@suncor.com or
by referring to the company's profile on SEDAR at www.sedar.com or
EDGAR at www.sec.gov. Except as required by applicable securities
laws, Suncor disclaims any intention or obligation to publicly update
or revise any forward-looking statements, whether as a result of new
information, future events or otherwise. 
Suncor Energy is Canada's premier integrated energy company. Suncor's
operations include oil sands development and upgrading, conventional
and offshore oil and gas production, petroleum refining, and product
marketing under the Petro-Canada brand. While working to responsibly
develop petroleum resources, Suncor is also developing a growing
renewable energy portfolio. Suncor's common shares (symbol: SU) are
listed on the Toronto and New York stock exchanges. 
For more information about Suncor Energy please visit our web site at
www.suncor.com, follow us on Twitter @SuncorEnergy or read our blog,
OSQAR.
Contacts:
Investor inquiries:
800-558-9071
invest@suncor.com 
Media inquiries:
403-296-4000
media@suncor.com
 
 
Press spacebar to pause and continue. Press esc to stop.