Suncor Energy reports 2013 third quarter results

Suncor Energy reports 2013 third quarter results 
CALGARY, ALBERTA -- (Marketwired) -- 10/30/13 --  
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 Oct. 30, 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. 
"This quarter's results reflect a significant step forward in our
drive to increase profitability," said Steve Williams, president and
chief executive officer. "We achieved record Oil Sands production in
the quarter as a result of debottlenecking activities that unlocked
production in our mining operations, increased our operational
flexibility and added incremental barrels at a low cost." 
- Operating earnings of $1.426 billion ($0.95 per common share),
including record operating earnings for the Oil Sands segment, and
net earnings of $1.694 billion ($1.13 per common share). 
- Cash flow from operations of $2.528 billion ($1.69 per common
share). 
- Record average quarterly production of 396,400 barrels per day
(bbls/d) at Oil Sands operations and lower cash operating costs of
$32.60 per barrel. 
- Suncor completed the sale of a significant portion of its natural
gas business in Western Canada for proceeds of $1 billion, before
closing adjustments and other closing costs, resulting in an
after-tax gain on sale of $130 million. 
- On October 30, 2013, the Fort Hills oil sands mining project
received sanction. The project is expected to provide Suncor with up
to 73,000 bbls/d of bitumen, with first oil expected as early as the
fourth quarter of 2017. 
Financial Results 
Suncor Energy Inc. recorded third quarter 2013 operating earnings of
$1.426 billion ($0.95 per common share), compared to $1.292 billion
($0.84 per common share) for the third quarter of 2012. Strong
operating earnings included a record for the Oil Sands segment which
was driven by record production, strong reliability and favourable
pricing for western Canadian crude oil. The integrated model enabled
the company to capture the strength in inland pricing through its Oil
Sands operations while continuing to realize incremental profit by
obtaining global-based pricing through the company's refining
operations and vast logistics network. 
Cash flow from operations was $2.528 billion ($1.69 per common share)
for the third quarter of 2013, compared to $2.743 billion ($1.79 per
common share) for the third quarter of 2012, and decreased due to
incremental current income tax expense the company had anticipated
for its Canadian operations, which was partially offset by the
positive factors that impacted operating earnings. Net earnings were
$1.694 billion ($1.13 per common share) for the third quarter of
2013, compared with net earnings of $1.544 billion ($1.01 per common
share) for the third quarter of 2012, and were impacted by the same
factors that affected operating earnings. Net earnings for the third
quarter of 2013 included an after-tax gain of $130 million on the
sale of a significant portion of the company's natural gas business
in Western Canada. The sale is consistent with Suncor's strategy to
focus on a core portfolio of high return assets. Net earnings for the
third quarter of 2013 also included an after-tax foreign exchange
gain on the revaluation of U.S. dollar denominated debt of $138
million, compared to $252 million in the prior year quarter. 
ROCE (excluding major projects in progress) for the twelve months
ended September 30, 2013 was 8.6%, compared to 12.4% for the twelve
months ended September 30, 2012. ROCE for the twelve months ended
September 30, 2013 was reduced by 4.3% 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 recorded in the first quarter of 2013 as a
result of not proceeding with the project. 
Operating Results 
Suncor's total upstream production rose to an average of 595,000
boe/d in the third quarter of 2013 from 535,300 boe/d in the third
quarter of 2012. 
Production volumes for Oil Sands operations increased 16% to a record
quarterly average of 396,400 bbls/d in the third quarter of 2013,
compared to 341,300 bbls/d in the third quarter of 2012. Factors
contributing to the step change in production included the ongoing
ramp up of production at Firebag, successful execution of
debottlenecking projects, solid performance in mining and strong
upgrading reliability. The company commissioned its hot bitumen
assets in the quarter, which are comprised of an insulated pipeline
from Firebag to Suncor's Athabasca terminal, bitumen cooling and
blending facilities, and capacity to import third-party diluents.
This new infrastructure and logistics capability has increased the
takeaway capacity of bitumen and unlocked production in mining. 
Production for Oil Sands operations was reduced in September as a
result of planned maintenance at the Upgrader 2 vacuum tower and
related units, which was successfully completed in October. This
marks the completion of major planned maintenance activities in Oil
Sands for the year and sets the foundation for a strong fourth
quarter. 
Sales volumes for Oil Sands operations increased to an average of
371,800 bbls/d for the third quarter of 2013, compared to 345,400
bbls/d in the prior year quarter, as a result of increased
production, partially offset by a build in inventory. Inventories
were replenished following the Upgrader 1 turnaround completed in the
second quarter of 2013. In addition, the company's average inventory
levels rose due to new infrastructure added to the company's storage
and logistics network in support of the growth in production. 
Cash operating costs per barrel for Oil Sands operations in the third
quarter of 2013 decreased to an average of $32.60 compared to $33.35
in the third quarter of 2012, reflecting higher production volumes,
slightly offset by marginally higher cash operating costs. Cash
operating costs increased over the prior year quarter due to
incremental costs associated with larger operations, including
Firebag Stage 4, higher maintenance activities in mining, and higher
natural gas costs, partially offset by the net benefit of increased
power sales. 
"We demonstrated improved reliability across our operations this
quarter, underscoring our commitment to operational excellence," said
Williams. "In Oil Sands, strong upgrader performance contributed to a
monthly production record of 433,000 bbls/d in August. In the
downstream, we saw record quarterly refinery utilizations rates,
reinforcing our position as a leader in the refining industry in
North America." 
Suncor's share of Syncrude production decreased to an average of
27,200 bbls/d in the third quarter of 2013 from 37,600 bbls/d in the
third quarter of 2012, due primarily to planned maintenance performed
on one of three cokers and the LC Finer. The maintenance was
completed in the quarter and units returned to production in late
August. 
The Exploration and Production segment contributed an average of
171,400 boe/d of production in the third quarter of 2013, compared to
156,400 boe/d in the same period of 2012, primarily due to
significantly less planned maintenance at all East Coast Canada
assets in the quarter. Production in the third quarter of 2013 was
impacted by the shut in of production in Libya in response to
political unrest and related labour disputes that resulted in the
closure of export terminal operations at certain Libyan seaports.
Suncor has not lifted production in Libya since May 2013, although
field activities have continued throughout the quarter. Suncor
continues to monitor the situation as the country continues its
difficult transition to a more stable environment. 
Planned maintenance at White Rose and Buzzard was successfully
completed in the third quarter of 2013. In late September, the
company commenced an eleven-week off-station maintenance event at the
Terra Nova facility to complete routine maintenance, repair a damaged
mooring chain and perform preventive maintenance on the remaining
eight chains. There will be no production from Terra Nova during this
maintenance period. 
The Refining and Marketing segment continued to demonstrate strong
reliability with refinery utilization of 98% in the third quarter of
2013. Total refinery crude throughput reached a record quarterly
average of 448,800 bbls/d during the third quarter of 2013, compared
to 441,400 bbls/d in the third quarter of 2012. 
Strategy Update 
Suncor continued to deliver value to shareholders through $299
million in dividends ($0.20 per common share) and share repurchases
of $426 million in the third 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 and vast logistics network. 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 secure market access into Canadian and
U.S. coastal markets, positioning the company to capture global
prices on both its current production and future growth. By early
2014, the company expects to increase its heavy crude shipping
capacity to the U.S. Gulf Coast through the Keystone South pipeline,
which is intended to increase logistics and marketing flexibility.
Suncor expects to meet linefill requirements on the pipeline in the
fourth quarter of 2013. During the quarter, the company also entered
into firm commitments for rail cars and terminalling services in
support of its market access strategy to transport inland crudes to
its Montreal refinery and to coastal markets. This strategy includes
a rail offloading facility in Montreal, which is expected to take
delivery of crude starting in the fourth quarter of 2013. 
Oil Sands Operations 
Investing in reliable and sustainable operations remains a priority.
Following the seven-week planned turnaround of Upgrader 1 in the
second quarter of 2013, Suncor executed the last planned maintenance
event of the year at its Upgrader 2 vacuum tower and related units,
which was successfully completed in October. 
Suncor continues to advance projects that are focused on discrete
growth through low-cost investments to optimize existing assets,
including debottlenecking and expansion projects. The company began
to realize the benefits of these activities through the commissioning
of the hot bitumen infrastructure, which unlocked production in
mining in the third quarter of 2013. The company continued to
progress a debottleneck of the MacKay River facility, which is
intended to increase production capacity by approximately 20% over
the next two years for a total capacity of 38,000 bbls/d. Suncor also
continues to work towards a 2014 sanction decision of the MacKay
River expansion project, which is targeted to have an initial design
capacity of approximately 20,000 bbls/d and first oil in 2017. 
In addition, the final two of four storage tanks in Hardisty,
Alberta, were commissioned to support growing Oil Sands production. 
Oil Sands Ventures 
On October 30, 2013, Suncor announced that the project co-owners
voted unanimously to proceed with the Fort Hills oil sands mining
project. Suncor has a 40.8% interest and is the developer and
operator of the project. The project has approximately 3.3 billion
barrels of best estimate contingent resources and is scheduled to
produce first oil as early as the fourth quarter of 2017 and achieve
90% of its planned production capacity of 180,000 bbls/d within
twelve months. 
The total post-sanction capital investment in Fort Hills is estimated
at approximately $13.5 billion ($5.5 billion net to Suncor), with
total project costs estimated to be at a capital intensity of
approximately $84,000 per flowing barrel of bitumen. 
"The Fort Hills project is aligned with our strategic objective to
only invest in projects that will provide the company with long-term
profitable growth. With a mine life in excess of 50 years, this
project will provide a stable source of cash flow over the long
term," said Williams. "We are excited by the addition of this project
to our core portfolio of assets and the potential synergies we can
achieve with our existing operated assets." 
Suncor and the co-owners of the Joslyn mining project continue to
focus on design engineering and regulatory work, and plan to provide
an update on the targeted timing for a project sanction decision 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, with an effective date of January 1, 2013. The transaction
closed on September 26, 2013 for proceeds of $1 billion, before
closing adjustments and other closing costs, resulting in an
after-tax gain on sale of $130 million. Production from these assets
was approximately 41,000 boe/d in the third quarter of 2013, of which
90% was natural gas. Net earnings and cash flow from operations for
the third quarter of 2013 from these assets were approximately $17
million and $28 million, respectively. Excluded from the sale was the
majority of Suncor's unconventional natural gas properties in the
Kobes region of British Columbia and unconventional oil properties in
the Wilson Creek area of central Alberta. 
The Golden Eagle project continued to progress in the quarter with
the installation of the second jacket and the wellhead deck. With
drilling activities expected to commence by early 2014, the project
remains on target to achieve first oil in late 2014 or early 2015.
Detailed engineering and construction of the gravity-based structure
and topsides continued for the Hebron project in the third quarter of
2013; the project is expected to achieve first oil in 2017. Subsea
installation began for the Hibernia Southern Extension Unit and is
expected to be completed in the fourth quarter of 2013. The project
is expected to increase overall production from the Hibernia field
starting in 2015. Installation activities, detailed engineering and
procurement activities continued for the remainder of the South White
Rose Extension project. Subsea equipment for this project is being
installed in two phases over 2013 and 2014. First oil is expected in
the fourth quarter of 2014. 
Operating Earnings Reconciliation(1) 


 
                                     Three months ended   Nine months ended 
                                           September 30        September 30 
($ millions)                             2013      2012      2013      2012 
----------------------------------------------------------------------------
Net earnings as reported                1 694     1 544     3 468     3 314 
Unrealized foreign exchange (gain)                                          
 loss on U.S. dollar denominated                                            
 debt                                    (138)     (252)      262      (237)
Gain on significant disposals(2)         (130)        -      (130)        - 
Net impact of not proceeding with                                           
 the Voyageur upgrader project(3)           -         -       127         - 
Impairments and write-offs(4)               -         -         -       694 
Impact of income tax rate                                                   
 adjustments on deferred income                                             
 taxes(5)                                   -         -         -        88 
----------------------------------------------------------------------------
Operating earnings                      1 426     1 292     3 727     3 859 
============================================================================
                                                                            
(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 Advisory section of the MD&A.                                  
                                                                            
(2) Represents the after-tax gain on sale from the disposition of a         
    significant portion of the company's natural gas business in Western    
    Canada.                                                                 
                                                                            
(3) Represents the expected cost of not proceeding with the project,        
    including costs related to decommissioning and restoration of the       
    Voyageur site, and contract cancellations.                              
                                                                            
(4) Reflects the impairment and write-off of assets in Syria.               
                                                                            
(5) Represents the elimination of the planned general corporate income tax  
    rate reduction in the Province of Ontario.                              

 
Corporate Guidance 
Suncor has revised its corporate guidance that it previously issued
on July 31, 2013. The key changes to the company's production
guidance include:  
- The decrease in outlook for International reflects the shut in of
production in Libya due to political unrest and labour disputes. 
- The decrease in outlook for Syncrude reflects the impact of
unplanned outages in upgrading, and the extension of planned
maintenance for one coker unit and the LC Finer in the year-to-date
period. 
- The decrease in outlook for North America Onshore reflects the sale
of a significant portion of the company's natural gas business in
Western Canada, which closed on September 26, 2013. The company
expects approximately 4,000 boe/d - 5,000 boe/d of production from
its remaining properties in North America Onshore. 


 
                                               2013 Full Year    Actual Nine
                              2013 Full Year          Outlook   Months Ended
                                     Outlook  Revised October  September 30,
                               July 31, 2013         30, 2013           2013
----------------------------------------------------------------------------
International (boe/d)        90 000 - 96 000  72 000 - 79 000         81 800
Syncrude (bbls/d)            34 000 - 38 000  32 000 - 33 000         30 400
North America Onshore                                                       
 (boe/d)                     41 000 - 46 000  36 000 - 38 000         48 400
============================================================================

 
Total production guidance has been reduced to 545,000 boe/d - 590,000
boe/d from 570,000 boe/d - 620,000 boe/d, as a result of the changes
described above. 
Suncor has also reduced its corporate guidance for capital
expenditures by $300 million to $6.7 billion. The decrease in outlook
for capital expenditures reflects: 
- Project prioritization that resulted in the deferral of spending
and lower cost estimates from scope optimization in Exploration and
Production. 
- Reductions to the unallocated discretionary growth capital pool in
Corporate, Energy Trading and Eliminations. 
Capital Expenditures(1)(2) 


 
                           2013 Full Year Outlook     2013 Full Year Outlook
                                    July 31, 2013   Revised October 30, 2013
($ millions)             Sustaining Growth  Total Sustaining Growth    Total
----------------------------------------------------------------------------
Oil Sands                     2 860  1 305  4 165      2 845  1 300    4 145
  Oil Sands operations        2 470    535  3 005      2 455    460    2 915
  Oil Sands Ventures            390    770  1 160        390    840    1 230
Exploration and                                                             
 Production                     215  1 405  1 620        165  1 335    1 500
Refining and Marketing          700    150    850        750    165      915
Corporate, Energy                                                           
 Trading and                                                                
 Eliminations                    95    270    365         95     45      140
----------------------------------------------------------------------------
                              3 870  3 130  7 000      3 855  2 845    6 700
============================================================================
(1) Capital expenditures exclude capitalized interest of between $350       
    million and $450 million.                                               
                                                                            
(2) For definitions of growth and sustaining capital expenditures, see the  
    Capital Investment Update section of the MD&A.                          

 
Certain sales assumptions were also revised. For further details
regarding Suncor's 2013 revised corporate guidance, see
www.suncor.com/guidance. 
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. 
Capital intensity per flowing barrel of bitumen is calculated by
dividing the anticipated project costs of the Fort Hills project by
the anticipated production capacity of the project. This measure is
included because management uses the information to analyze capital
efficiency. Capital intensity per flowing barrel of bitumen does not
have any standard meaning and therefore is unlikely to be comparable
to similar measures presented by other companies. Readers are
cautioned not to place undue reliance on this measure. 
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. 
- Third-party pipelines. Production estimates could be negatively
impacted by third-party pipeline disruptions that may result in the
apportionment of capacity or pipeline shutdowns, which would affect
the company's ability to market its crude oil. 
- 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 in 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 are included because management
uses this information to
analyze operating performance, leverage and liquidity. These non-GAAP
measures do not have any standardized meaning and therefore are
unlikely to be comparable to similar measures presented by other
companies 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 information and
forward-looking statements (collectively referred to herein as
"forward-looking statements") within the meaning of applicable
Canadian and U.S. securities laws. Forward-looking statements are
based on Suncor's current expectations, estimates, projections and
assumptions that were made by the company in light of its information
available at the time the statement was made and consider Suncor's
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. In
addition, all other statements and information about Suncor's
strategy for growth, expected and future expenditures or investment
decisions, commodity prices, costs, schedules, production volumes,
operating and financial results and the expected impact of future
commitments are forward-looking statements. Some of the
forward-looking statements and information may be identified by words
like "expects", "anticipates", "will", "estimates", "plans",
"scheduled", "intends", "believes", "projects", "indicates", "could",
"focus", "vision", "goal", "outlook", "proposed", "target",
"objective", "continue", "should", "may" and similar expressions. 
Forward-looking statements in this news release include references
to: the company's plans to work towards a 2014 sanction decision of
the MacKay River expansion project, which is targeted to have an
initial design capacity of approximately 20,000 bbls/d and first oil
in 2017; the estimate that total post-sanction capital investment in
Fort Hills is estimated at approximately $13.5 billion ($5.5 billion
net to Suncor) and that total project costs for the Fort Hills
project are estimated to be at a capital intensity of approximately
$84,000 per flowing barrel of bitumen; Suncor's expectations about
production volumes and the performance of its existing assets; the
anticipated duration and impact of planned maintenance events,
including the company's expectation that all planned maintenance
events for Oil Sands are complete for the year; Suncor's expectations
about capital expenditures, and growth and other projects, including
the company's capital allocation plans; the company's plans to
increase its heavy crude shipping capacity to the U.S. Gulf Coast
through its capacity on the Keystone South pipeline; resulting in
additional logistics and marketing flexibility; the company's plans
to meet line fill requirements on the Keystone South pipeline in the
fourth quarter of 2013; the expectation that the rail offloading
facility in Montreal will take delivery of crude starting in the
fourth quarter of 2013;
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
expectation that the Fort Hills project will produce first oil as
early as the fourth quarter of 2017, achieve 90% of its planned
production capacity of 180,000 bbls/d (73,000 bbls/d net to Suncor)
within twelve months, have an expected mine life in excess of 50
years at the current planned production rate (which assumes that all
of the estimated contingent resources are developed), and that
Suncor's portion of the post-sanction capital investment in Fort
Hills is estimated at approximately $5.5 billion; the company's plans
to continue to focus on design engineering and regulatory work and to
provide an update on the targeted timing for a sanction decision for
the Joslyn mining project when available; the design and construction
of new well pads at Firebag and MacKay River are expected to maintain
existing production levels in future years; drilling activities on
Golden Eagle project are expected to commence by early 2014, and the
project is expected to achieve first oil in late 2014 or early 2015;
subsea installation for the Hibernia Southern Extension Unit is
expected to be completed in the fourth quarter of 2013. The project
is expected to increase the overall production from the Hibernia
field starting in 2015; subsea equipment for the South White Rose
Extension project is expected to be installed in two phases over 2013
and 2014. First oil is expected in the fourth quarter of 2014; and
that the Hebron project is expected 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 or reassessment 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 (the "2012 AIF") and
Form 40-F, each 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 - Resources 
Suncor's operating working interest before deduction of royalties,
and without including any royalty interests of Suncor, in the
approximately 3.3 billion barrels of contingent resources associated
with the Fort Hills project in Alberta is approximately 1.35 billion
barrels of bitumen. In its 2012 AIF and Form 40-F, Suncor disclosed
that the reclassification of the contingent resources, which have an
effective date of December 31, 2012, for the Fort Hills project was
largely contingent upon an assessment that development would be
sanctioned and commence within a reasonable time frame. Since the
date of its 2012 AIF, the respective co-owners of the Fort Hills
project have sanctioned the project. Given the foregoing, these
resources, or a portion thereof, may in the future be re-classified
as reserves. Contingent resources are those quantities of petroleum
estimated, as of a given date, to be potentially recoverable from
known accumulations using established technology or technology under
development, but which are not currently considered to be
commercially recoverable due to one or more contingencies. There is
no certainty that it will be commercially viable to produce the
contingent resources. There is no certainty as to timing of the
development of the resources. The contingent resource estimates are
considered to be the best estimate of the quantity of resources that
will actually be recovered. It is equally likely that the actual
remaining quantities recovered will be greater or less than the best
estimate. The best estimate of potentially recoverable volumes is
prepared independent of the risks associated with achieving
commercial production. There are numerous uncertainties inherent in
estimating quantities and quality of these contingent resources,
including many factors beyond our control. Contingencies may include
factors such as economic, legal, environmental, political and
regulatory matters or lack of infrastructure or markets. For more
information on contingent resources, please see Suncor's 2012 AIF and
Form 40-F. 
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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