Suncor Energy reports 2013 second quarter results

Suncor Energy reports 2013 second quarter results 
CALGARY, ALBERTA -- (Marketwired) -- 07/31/13 --  
Unless otherwise noted, all financial figures are unaudited,
presented in Canadian dollars (Cdn$), and have been prepared in
accordance with International Financial Reporting Standards (IFRS),
specifically International Accounting Standard (IAS) 34 Interim
Financial Reporting as issued by the International Accounting
Standards Board. Effective January 1, 2013, Suncor adopted new and
amended accounting standards, described in the Other Items section of
Suncor's Management's Discussion and Analysis dated July 31, 2013
(the MD&A). Comparative figures presented in this news release
pertaining to Suncor's 2012 results have been restated in accordance
with the respective transitional provisions of the new and amended
standards. Production volumes are presented on a working-interest
basis, before royalties, unless noted otherwise. Certain financial
measures referred to in this document (operating earnings, cash flow
from operations, return on capital employed (ROCE) and Oil Sands cash
operating costs) are not prescribed by Canadian generally accepted
accounting principles (GAAP). References to Oil Sands operations
exclude Suncor's interest in Syncrude. 
"Suncor's integrated model enabled the company to generate solid cash
flow from operations once again this quarter," said Steve Williams,
president and chief executive officer. "I am proud of our team's
success in safely completing a series of coordinated planned
maintenance events across our operations and delivering a number of
projects to increase both our takeaway capacity and market access.
These activities have added strength and flexibility to our asset
base, which leaves us well positioned for strong results going
forward." 
- Operating earnings of $934 million ($0.62 per common share) and net
earnings of $680 million ($0.45 per common share). 
- Cash flow from operations of $2.250 billion ($1.49 per common
share). 
- Quarterly production of 276,600 barrels per day (bbls/d) in Oil
Sands operations, reflecting the impacts of the Upgrader 1 turnaround
and unplanned third-party outages in the quarter. 
- Completion of maintenance events at Upgrader 1, Firebag and the
Edmonton refinery, which were planned and executed to minimize the
impact on Suncor's integrated operations. The company has
transitioned to a five-year upgrader turnaround cycle at Oil Sands
and anticipates the next major turnaround to occur in 2016 at
Upgrader 2. 
- Excellent progress on increasing takeaway capacity out of the Fort
McMurray region and securing market access to global prices for both
current production and future growth. 
Financial Results 
Suncor Energy Inc. recorded second quarter 2013 operating earnings of
$934 million ($0.62 per common share), compared to $1.249 billion
($0.80 per common share) for the second quarter of 2012. Operating
earnings were impacted by planned maintenance events in Oil Sands and
Refining and Marketing, and additional production constraints in Oil
Sands due to unplanned third-party outages, including the
precautionary shutdown of third-party pipelines in response to
flooding in northern Alberta. Other factors include incremental
operating costs associated with the company's growing production
assets, which were offset by an increase in price realizations across
all crude baskets in Oil Sands due to narrowing price differentials
on western Canadian crude oil. 
Cash flow from operations was $2.250 billion ($1.49 per common share)
for the second quarter of 2013, compared to $2.347 billion ($1.51 per
common share) for the second quarter of 2012, and decreased primarily
due to the same factors that impacted operating earnings, discussed
above. 
Net earnings were $680 million ($0.45 per common share) for the
second quarter of 2013, compared with net earnings of $324 million
($0.21 per common share) for the second quarter of 2012, and were
impacted by the same factors that affected operating earnings. Second
quarter 2012 net earnings also included an after-tax impairment
charge on the company's Syrian assets of $694 million, partially
offset by a smaller foreign exchange loss on the revaluation of U.S.
dollar denominated debt in the second quarter of 2012. ROCE
(excluding major projects in progress) for the twelve months ended
June 30, 2013 was 8.1%, compared to 14.2% for the twelve months ended
June 30, 2012. ROCE for the twelve months ended June 30, 2013 was
reduced by 4.4% due to an after-tax impairment charge of $1.487
billion relating to the Voyageur upgrader project recorded in the
fourth quarter of 2012, in addition to an after-tax charge of $127
million in the first quarter of 2013 as a result of not proceeding
with the project. 
Operating Results 
Suncor's total upstream production was 500,100 boe/d in the second
quarter of 2013, compared to 542,400 boe/d in the second quarter of
2012. 
Production volumes for Oil Sands operations averaged 276,600 bbls/d
in the second quarter of 2013, compared to 309,200 bbls/d in the
prior year quarter. Production was impacted by the seven-week planned
turnaround at Upgrader 1 and unplanned third-party outages.
Third-party outages reduced production in the quarter by
approximately 36,000 bbls/d. A third-party cogeneration outage in
early May resulted in a three-day outage of Upgrader 2 and a
subsequent ramp-up period, which limited the production of Synthetic
crude oil (SCO) and constrained diluent availability for blending
with bitumen production until early June. In late June, a
precautionary shutdown of third-party pipelines in response to
flooding in northern Alberta further reduced production. Suncor
worked to mitigate the impact using existing storage capacity and
continuing to transport product on its proprietary pipeline. 
"Following these events, production at our Oil Sands operations has
been restored, and we are currently seeing strong performance," said
Williams. "Production levels today reflect reliability improvements
from the Upgrader 1 turnaround and the progress we have made on
increasing takeaway capacity, including the completion of hot bitumen
infrastructure and securing additional storage and pipeline capacity
to enable diluent imports." 
Consistent with the company's expectations, cash operating costs per
barrel for Oil Sands operations increased in the second quarter of
2013. The increase to $46.55 per barrel, compared to $39.00 per
barrel in the second quarter of 2012, was due primarily to lower
production volumes and an increase in total cash operating costs.
Total cash operating costs increased over the prior year quarter due
to incremental costs associated with larger operations, higher
natural gas prices and higher maintenance activities in mining,
partially offset by the net benefit of increased power sales and
lower contract mining costs associated with reduced mining output. 
Suncor's share of Syncrude production increased to 32,800 bbls/d in
the second quarter of 2013 from 28,600 bbls/d in the second quarter
of 2012. The increase in production in the second quarter of 2013 was
primarily due to a two-month planned maintenance event in the second
quarter of 2012. The current quarter was impacted by unplanned boiler
outages that required a shutdown of one of three cokers.
Consequently, the decision was made to advance the eight-week planned
maintenance event of the coker to early June from its scheduled time
in the latter half of 2013. 
The Exploration and Production segment contributed 190,700 boe/d of
produc
tion in the second quarter of 2013, compared to 204,600 boe/d
in the same period of 2012. The decrease in production was primarily
due to lower production in Libya, partially offset by higher
production at White Rose and Terra Nova due to planned off-station
maintenance programs in the prior year quarter. Production in Libya
returned to normal rates in July after a field was shut-in throughout
the second quarter of 2013 to facilitate the establishment of field
security. In late July, labour issues started to impact terminal
operations that may reduce production and liftings in the third
quarter of 2013. Suncor continues to monitor its production and
exploration activity as the country continues to go through a
difficult transition towards a more stable environment. Operating
safely in Libya remains Suncor's primary concern. During the quarter,
a routine inspection of the Terra Nova facility indicated that one of
nine mooring chains was damaged. Consequently, the company has
extended the previously planned four-week maintenance event to 11
weeks in order to repair the mooring chain and perform preventive
maintenance on the remaining eight chains. There will be no
production from Terra Nova during this maintenance period, which is
expected to commence in September. 
In the company's Refining and Marketing segment, total refinery crude
throughput averaged 414,500 bbls/d during the second quarter of 2013,
compared to 427,200 bbls/d in the second quarter of 2012, resulting
in average refinery utilization of 90% and 94%, respectively. The
decrease in refinery utilization was due primarily to lower
utilization at the Edmonton refinery, partially offset by stronger
utilizations across all other refineries. At the Edmonton refinery,
the company completed a four-week planned maintenance event of the
heavy sour crude train and unplanned maintenance of the main flare
gas line. All maintenance at the Edmonton refinery was completed by
the end of May. 
Strategy Update 
The company allocates its capital according to a clear set of
priorities: ensuring sustainable and reliable operations, investing
in profitable growth and delivering strong returns to shareholders
through dividends and share repurchases. Suncor continued to deliver
value to shareholders through $302 million in dividends ($0.20 per
common share) and share repurchases of $294 million in the second
quarter of 2013. 
Investing in Integration and Market Access 
Suncor's integrated model has enabled the company to capture
Brent-based pricing on the majority of its Oil Sands production
through its refining operations. As Suncor's upstream production
continues to grow, enhancing integration within the company's
operations and securing market access are key to operational
flexibility and maximizing profitability. 
Suncor continues activities to increase market access into Canadian
and United States coastal markets. The company expects to start
shipping on the Keystone South pipeline by early 2014, which will
transport heavy crude to the U.S. Gulf Coast. During the quarter, the
company made substantial progress on projects to transport inland
crudes to the company's Montreal refinery by the end of 2013. 
"With more than 600,000 bbls/d of existing and planned transportation
capacity, we're strategically positioned to capture global prices on
both our current production and future growth," said Williams. "We're
largely sheltered from market access challenges confronting our
industry due to our integrated model, augmented by the transportation
arrangements we've made and the infrastructure developments we've
progressed. The result - we have considerable operational
flexibility, which allows us to capitalize on market opportunities as
they arise." 
Oil Sands Operations 
Investing in reliable and sustainable operations remains a priority.
During the quarter, the company completed its planned seven-week
turnaround of Upgrader 1, which is expected to improve reliability
and contribute to the company's overall upgrader performance targets.
The company also completed the 14-week planned maintenance of the
Upgrader 1 hydrogen plant and hydrotreating units. A four- to
five-week planned maintenance event of the Upgrader 2 vacuum tower is
scheduled for the third quarter of 2013. The progress the company has
made on operational excellence has allowed Suncor to transition to a
five-year upgrader turnaround cycle, with the next major turnaround
anticipated to occur in 2016 at Upgrader 2. 
The company continues to advance projects that are focused on
discrete growth through low-cost investments in optimizing existing
assets, including debottlenecking projects across Oil Sands base and
in situ assets, and expansions in In Situ. Collectively, these
projects are expected to contribute approximately 100,000 bbls/d of
incremental production over the next five years. One of the early
projects is expected to increase the production capacity of the
company's MacKay River facility by approximately 20% over the next
two years for a total capacity of 38,000 bbls/d. In further support
of this strategy, the company continued to work towards a 2014
sanction decision of the MacKay River expansion project, which is
expected to have a design capacity of approximately 20,000 bbls/d and
first oil production in 2017. 
Suncor made excellent progress on increasing takeaway capacity
through the completion of hot bitumen infrastructure, including the
insulated bitumen pipeline from Firebag to Suncor's Athabasca
terminal and the associated cooling and blending facilities. The
company also secured pipeline and storage capacity to import up to
20,000 bbls/d of diluent. These assets were placed into service in
July, enabling the continued ramp up of Firebag and the
transportation of increased volumes of bitumen out of the Fort
McMurray region. The completion of these assets has unlocked
constrained production capacity, provided greater operating
flexibility and is expected to optimize the company's sales mix going
forward. 
Oil Sands Ventures 
The company plans to present the Fort Hills project for a sanction
decision to project co-owners in the fourth quarter of 2013. Capital
expenditures in the second quarter of 2013 continued to focus on
design engineering, site preparation and early activity related to
long-lead items. Regarding the Joslyn mining area, Suncor and the
project co-owners continue to focus on design engineering and
regulatory work of the Joslyn mining area and plan to provide an
update on the targeted timing for a sanction decision on the project
when available. 
Exploration and Production 
On April 15, 2013, Suncor announced it had reached an agreement to
sell a significant portion of its natural gas business in Western
Canada for $1 billion, subject to closing adjustments on an economic
basis, with an effective date of January 1, 2013. The transaction is
expected to close during the third quarter of 2013 and is subject to
closing conditions and regulatory approvals. The company expects to
recognize a gain upon close of this transaction. Production from
these assets was 43,000 boe/d in the second quarter of 2013, of which
90% was natural gas. Net earnings and cash flow from operations for
the second quarter of 2013 from these assets was approximately $26
million and $33 million, respectively. Excluded from the sale are the
majorit
y of Suncor's unconventional natural gas properties in the
Kobes region of British Columbia and unconventional oil assets in the
Wilson Creek area of central Alberta. 
The Golden Eagle project reached a major milestone in the quarter
with the installation of the wellhead jacket into the field location.
Design completion was achieved for topsides and subsea facilities,
and the project is on target to reach first oil in late 2014 or early
2015. Detailed engineering and construction of the gravity-based
structure continued and topsides fabrication began for the Hebron
project in the second quarter of 2013; the project is expected to
achieve first oil in 2017. Detailed engineering and procurement
activities continued for the Hibernia Southern Extension and the
South White Rose Extension projects. 
Operating Earnings Reconciliation(1) 


 
                                      Three months ended    Six months ended
                                                 June 30             June 30
($ millions)                              2013      2012      2013      2012
----------------------------------------------------------------------------
Net earnings as reported                   680       324     1 774     1 770
Unrealized foreign exchange loss on                                         
 U.S. dollar denominated long-term                                          
 debt                                      254       143       400        15
Net impact of not proceeding with                                           
 the Voyageur upgrader project(2)            -         -       127         -
Impairments and write-offs(3)                -       694         -       694
Impact of income tax rate                                                   
 adjustments on deferred income                                             
 taxes(4)                                    -        88         -        88
----------------------------------------------------------------------------
Operating earnings                         934     1 249     2 301     2 567
============================================================================
(1) Operating earnings is a non-GAAP financial measure. All reconciling     
    items are presented on an after-tax basis. See the Non-GAAP Financial   
    Measures section of this news release.                                  
(2) Represents the expected cost of not proceeding with the project,        
    including costs related to decommissioning and restoration of the       
    Voyageur site, and contract cancellations.                              
(3) Reflects the impairment and write-off of assets in Syria.               
(4) Represents the elimination of the planned corporate income tax rate     
    reduction in the Province of Ontario.                                   

 
Corporate Guidance 
Suncor has revised certain components of the corporate guidance that
it previously issued on April 29, 2013. The key changes to the
company's corporate guidance include: 
- The range for current income taxes has been adjusted to $1.800
billion - $2.100 billion from $1.500 billion - $1.700 billion
primarily due to an increase in price realization assumptions for the
second half of 2013. 
- The outlook for capital expenditures has been lowered from $7.300
billion to $7.000 billion, due to project prioritization that
resulted in the deferral of spending across all business segments and
lower cost estimates resulting from scope optimization and capital
discipline. 
Capital Expenditures(1)(2) 


 
                             2013 Full Year Outlook   2013 Full Year Outlook
                                     April 29, 2013    Revised July 31, 2013
($ millions)               Sustaining Growth  Total Sustaining Growth  Total
----------------------------------------------------------------------------
Oil Sands                       2 960  1 235  4 195      2 860  1 305  4 165
  Oil Sands operations          2 540    570  3 110      2 470    535  3 005
  Oil Sands Ventures              420    665  1 085        390    770  1 160
Exploration and Production        205  1 640  1 845        215  1 405  1 620
Refining and Marketing            670     60    730        700    150    850
Corporate, Energy Trading                                                   
 and Eliminations                 155    375    530         95    270    365
----------------------------------------------------------------------------
                                3 990  3 310  7 300      3 870  3 130  7 000
============================================================================
(1) Capital expenditures exclude capitalized interest of $350 million to    
    $450 million.                                                           
(2) For definitions of growth and sustaining capital expenditures, see the  
    Capital Investment Update section of the MD&A. Capital expenditures     
    attributed to Corporate includes a $100 million growth capital pool     
    remaining to be allocated to the business units for spending at the     
    discretion of management.                                               

 
Certain outlook assumptions were also revised as set forth in the
Advisories, Assumptions and Risk Factors section of this news
release. Suncor's 2013 complete corporate guidance is available at
www.suncor.com/guidance. 
Normal Course Issuer Bid 
In order to align any future renewals of Suncor's normal course
issuer bids on the Toronto Stock Exchange (TSX) more closely to the
release of Suncor's quarterly results, the TSX today accepted a
notice filed by Suncor of its intention to cancel its existing Normal
Course Issuer Bid (the 2012 NCIB) effective as at the close of
markets on August 2, 2013 and commence a new Normal Course Issuer Bid
(the 2013 NCIB) through the facilities of the TSX, New York Stock
Exchange and/or alternative trading platforms. The notice provides
that Suncor may purchase for cancellation up to approximately $1.8
billion worth of its common shares beginning August 5, 2013 (or if
shares are purchased on the TSX, beginning on August 6, 2013 due to
the statutory holiday) and ending August 4, 2014. 
The actual number of common shares that may be purchased and the
timing of any such purchases will be determined by Suncor. Suncor
believes that, depending on the trading price of its common shares
and other relevant factors, purchasing its own shares represents an
attractive investment opportunity and is in the best interests of the
company and its shareholders. 
Between July 29, 2012 and July 29, 2013, Suncor successfully
completed the purchase of approximately $1.3 billion worth of its
common shares (41,342,400), at a weighted average price of $31.67 per
common share. As at July 29, 2013, Suncor had 1,501,033,171 common
shares issued and outstanding. Pursuant to the 2013 NCIB, Suncor has
agreed that it will not purchase more than 66,414,828 common shares,
which is equal to approximately 4% of Suncor's issued and outstanding
common shares in the public float. 
In connection with the 2013 NCIB, the TSX has also granted approval
for Suncor to issue put options to a Canadian financial institution
from time to time. Options issued in connection with the 2013 NCIB
will entitle the purchaser, on the expiry date of the relevant
options, to sell to Suncor a specified number of Suncor common shares
for cancellation at a price agreed to on the date the options are
issued. Suncor will receive a premium for each option issued. The
exercise price payable by Suncor upon exercise of an option will not
exceed the relevant market price of Suncor common shares on the day
the option is issued and the amount of the premium received by Suncor
for the option. The number of options issued, the exercise prices,
expiration dates and premiums in respect of each option will be
negotiated by Suncor and the financial institution, and will be
subject to NCIB limits determined by the TSX. All options will expire
on o
r before September 19, 2013. Suncor common shares subject to the
put options must be purchased through the TSX and in accordance with
TSX trading restrictions on purchases under the 2013 NCIB. 
Subject to the 'block purchase exemption' that is available to Suncor
for regular open market purchases under the 2013 NCIB, Suncor and the
financial institution will limit daily purchases of Suncor common
shares on the TSX in connection with the 2013 NCIB and related to the
put options to no more than 25% (915,214) of the average daily
trading volume of Suncor's common shares on the TSX during any
trading day. 
In the future, Suncor may enter into an automatic share purchase plan
in relation to purchases made in connection with the 2013 NCIB. 
Advisories, Assumptions and Risk Factors 
The Strategy Update and Corporate Guidance discussions above contain
forward-looking information including the information identified in
the Legal Advisory-Forward-Looking Information section of this news
release. Forward-looking information is subject to a number of risks
and uncertainties, many of which are beyond Suncor's control,
including those outlined below and in the Forward-Looking Information
section of the MD&A. 
Suncor's corporate guidance is based on the following commodity price
assumptions: West Texas Intermediate crude oil at Cushing of US$93.00
per barrel (bbl); Brent, Sullom Voe of US$100.00/bbl; and Western
Canadian Select at Hardisty of US$73.00/bbl. In addition, the
guidance is based on the assumption of a natural gas price (AECO - C
Spot) of Cdn$3.35/gigajoule and an exchange rate (US$/Cdn$) of $0.96.
Assumptions for the Oil Sands and Syncrude 2013 production outlook
include those relating to reliability and operational efficiency
initiatives that the company expects will minimize unplanned
maintenance for the remainder of 2013. Assumptions for the
Exploration and Production 2013 production outlook include those
relating to reservoir performance, drilling results and facility
reliability. Factors that could potentially impact Suncor's 2013
corporate guidance include, but are not limited to: 
- Bitumen supply. Bitumen supply may be dependent on unplanned
maintenance of mine equipment and extraction plants, bitumen ore
grade quality, tailings storage and in situ reservoir performance. 
- Availability of infrastructure. A number of new storage and
distribution infrastructure projects are currently in progress or
being placed into service, which the company expects will support
growth at Oil Sands operations. The timing for the completion and
successful integration of these projects into existing operations may
impact production, some of which is out of the company's direct
control. 
- Performance of recently commissioned facilities or well pads.
Production rates while new equipment is being brought into service
are difficult to predict and can be impacted by unplanned
maintenance. Sweet synthetic crude oil production levels from Oil
Sands are dependent on the successful operation of hydrogen plants
and hydrotreating units. Bitumen production levels are dependent on
the successful ramp up of Firebag Stage 4. 
- Unplanned maintenance. Production estimates could be negatively
impacted if unplanned work is required at any of our mining,
extraction, upgrading, in situ processing, refining, natural gas
processing, pipeline, or offshore assets. 
- Planned maintenance events. Production estimates, including
production mix, could be negatively impacted if planned maintenance
events are affected by unexpected events. The successful execution of
maintenance and start-up of operations for offshore assets, in
particular, may be impacted by harsh weather conditions, particularly
in the winter season. 
- Commodity prices. Declines in commodity prices may alter our
production outlook and/or reduce our capital expenditure plans. 
- Foreign operations. Suncor's foreign operations and related assets
are subject to a number of political, economic and socio-economic
risks. 
Non-GAAP Financial Measures 
Operating earnings and Oil Sands cash operating costs are defined in
the Non-GAAP Financial Measures Advisory section of the MD&A and
reconciled to GAAP measures respectively in the Consolidated
Financial Information and the Segment Results and Analysis - Oil
Sands section of the MD&A. Cash flow from operations and ROCE are
defined and reconciled to GAAP measures in the Non-GAAP Financial
Measures Advisory section of the MD&A. 
These non-GAAP financial measures do not have any standardized
meaning and therefore are unlikely to be comparable to similar
measures presented by other companies. These non-GAAP financial
measures are 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 measures of
performance prepared in accordance with GAAP. 
Legal Advisory - Forward-Looking Information 
This news release contains certain forward-looking statements and
other information based on Suncor's current expectations, estimates,
projections and assumptions that were made by the company in light of
its experience and its perception of historical trends, including:
expectations and assumptions concerning the accuracy of reserves and
resources estimates; commodity prices and interest and foreign
exchange rates; capital efficiencies and cost savings; applicable
royalty rates and tax laws; future production rates; the sufficiency
of budgeted capital expenditures in carrying out planned activities;
the availability and cost of labour and services; and the receipt, in
a timely manner, of regulatory and third-party approvals. All
statements and other information that address expectations or
projections about the future, and other statements and information
about Suncor's strategy for growth, expected and future expenditures,
commodity prices, costs, schedules, production volumes, operating and
financial results and expected impact of future commitments are
forward-looking statements. Some of the forward-looking statements
and information may be identified by words like "expected",
"guidance", "plans", "outlook", "continue", "focus", "could",
"potentially" and similar expressions. 
Forward-looking statements in this news release include references
to: the company's expectation that recent labour issues impacting
terminal operations may reduce production and liftings in Libya in
the third quarter of 2013; the company's plans to complete an 11-week
maintenance event at Terra Nova which is expected to commence in
September; the company's plans to start shipping on the Keystone
South pipeline by early 2014; the company's plans to have more than
600,000 bbls/d of transportation capacity and that this capacity will
allow the company to capture global prices on both current production
and future growth; the seven-week planned turnaround of Upgrader 1
which occurred in the second quarter of 2013, which is expected to
improve reliability and contribute to the company's overall upgrader
performance targets; the company's plans to complete planned
maintenance of the Upgrader 2 vacuum tower in the third quarter of
2013, which is expected to have a duration of four to five weeks; the
company's plans to complete the next major upgrader turnaround in
2016 at Upgrader 2; the company's expectations that debottlenecking
projects across Oil Sands base and in situ assets, and expansions in
In Situ, will contribute approximately 100,000 bbls/d of incremental
production over the next five years; the debottlenecking project at
the MacKay River facilities is expected to increase production
capacity by approximately 20% over the next two years for a total
capacity of 38,000 bbls/d; the completion of hot bitumen
infrastructure and the ability to import up to 20,000 bbls/d of
diluent are expected to optimize the company's sales mix going
forward; the company's plans to work towards a 2014 sanction decision
of the MacKay River expansion project which the compa
ny expects will
have a design capacity of approximately 20,000 bbls/d and first oil
production in 2017; the company's plans to present the Fort Hills
project for a sanction decision to project co-owners in the fourth
quarter of 2013; the company's plans to provide an update on the
targeted timing for a sanction decision for the Joslyn project when
available; the company's expectations that it will recognize a gain
upon close of the transaction to sell a significant portion of its
natural gas business; the expectation that the Golden Eagle project
will achieve first oil in late 2014 or early 2015; and the plan for
the Hebron project to achieve first oil in 2017. 
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. 
Additional risks, uncertainties and other factors that could
influence financial and operating performance of all of Suncor's
operating segments and activities include, but are not limited to,
changes in general economic, market and business conditions, such as
commodity prices, interest rates and currency exchange rates;
fluctuations in supply and demand for Suncor's products; the
successful and timely implementation of capital projects, including
growth projects and regulatory projects; competitive actions of other
companies, including increased competition from other oil and gas
companies or from companies that provide alternative sources of
energy; labour and material shortages; actions by government
authorities, including the imposition of taxes or changes to fees and
royalties, and changes in environmental and other regulations; the
ability and willingness of parties with whom we have material
relationships to perform their obligations to us; the occurrence of
unexpected events such as fires, equipment failures and other similar
events affecting Suncor or other parties whose operations or assets
directly or indirectly affect Suncor; the potential for security
breaches of Suncor's information systems by computer hackers or cyber
terrorists, and the unavailability or failure of such systems to
perform as anticipated as a result of such breaches; our ability to
find new oil and gas reserves that can be developed economically; the
accuracy of Suncor's reserves, resources and future production
estimates; market instability affecting Suncor's ability to borrow in
the capital debt markets at acceptable rates; maintaining an optimal
debt to cash flow ratio; the success of the company's risk management
activities using derivatives and other financial instruments; the
cost of compliance with current and future environmental laws; risks
and uncertainties associated with closing a transaction for the
purchase or sale of an oil and gas property, including estimates of
the final consideration to be paid or received, the ability of
counterparties to comply with their obligations in a timely manner
and the receipt of any required regulatory or other third-party
approvals outside of Suncor's control that are customary to
transactions of this nature; and the accuracy of cost estimates, some
of which are provided at the conceptual or other preliminary stage of
projects and prior to commencement or conception of the detailed
engineering that is needed to reduce the margin of error and increase
the level of accuracy. The foregoing important factors are not
exhaustive. 
The MD&A and Suncor's Annual Information Form/Form 40-F dated March
1, 2013, 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. 
Legal Advisory - BOEs 
Certain natural gas volumes have been converted to barrels of oil
equivalent (boe) on the basis of one barrel to six thousand cubic
feet. Any figure presented in boe may be misleading, particularly if
used in isolation. A conversion ratio of one bbl of crude oil or
natural gas liquids to six thousand cubic feet of natural gas is
based on an energy equivalency conversion method primarily applicable
at the burner tip and does not represent a value equivalency at the
wellhead. Given that the value ratio based on the current price of
crude oil as compared to natural gas is significantly different from
the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis
may be misleading as an indication of value. 
Suncor Energy is Canada's leading 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
suncor.com, follow us on Twitter @SuncorEnergy or read our blog,
OSQAR. 
Contacts:
Media inquiries:
403-296-4000
media@suncor.com 
Investor inquiries:
800-558-9071
invest@suncor.com
 
 
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