Suncor Energy announces 2014 capital spending plan and production outlook

Suncor Energy announces 2014 capital spending plan and production outlook 
Oil production expected to grow by 10% 
(All financial figures are approximate and in Canadian dollars unless
otherwise noted) 
CALGARY, ALBERTA -- (Marketwired) -- 11/20/13 -- Suncor Energy
released its 2014 corporate guidance today, which includes $7.8
billion in capital spending and planned average production of 565,000
to 610,000 barrels of oil equivalent per day. Oil Sands production is
expected to increase by over 14 per cent, more than offsetting the
reduced production from the North America Onshore business as a
result of the natural gas divestiture in 2013. Total oil production
year over year is expected to increase by approximately 10 per cent. 
Approximately $4.2 billion of the 2014 capital spend is expected to
go towards growth projects, with $1.9 billion of that growth capital
earmarked for advancing oil sands projects including the Fort Hills
joint venture and near-term debottlenecking and expansion initiatives
such as MacKay River 2. Growth capital is also allocated to
Exploration and Production projects including investment in Golden
Eagle in the North Sea and development of East Coast Canada assets
such as Hebron. Refining and Marketing growth capital of $220 million
will largely be deployed on projects to support inland crude supply
to the Montreal refinery. 
"Our 2014 capital plan demonstrates our continued commitment to
capital discipline," said Steve Williams, Suncor president and chief
executive officer. "As evidenced by our debottlenecking initiatives
and the recent Fort Hills project sanction, we will be diligent in
pursuing only those projects we believe will deliver long-term
shareholder value. This approach applies not only to how we view oil
sands investments, but also to other opportunities in our rich suite
of growth projects." 


 
Capital Expenditures (millions $) (1)                                       
                                                                 Capital (2)
                                  2014 Outlook     Sustaining         Growth
                                 Nov. 20, 2013                              
----------------------------------------------------------------------------
                                              
                              
Oil Sands Total                          4,450          2,525          1,925
  Oil Sands                              2,850          2,270            580
  Oil Sands Ventures                     1,600            255          1,345
Exploration and Production               2,000            120          1,880
Refining and Marketing                     960            740            220
Corporate                                  390            185            205
Total                                    7,800          3,570          4,230
(1) Capital expenditures exclude capitalized interest of $400 million - $500
    million.                                                                
(2) For definitions of growth and sustaining capital expenditures, see the  
    Capital Investment Update section of Suncor's Management's Discussion   
    and Analysis for the third quarter of 2013 dated October 30, 2013.      

 
Approximately $3.6 billion of the 2014 capital spend is expected to
go toward sustaining capital investments focused on improving
reliability across the company's assets, maintaining current
production capacities through planned maintenance activities and
ensuring the safety and efficiency of existing operations. 
2014 Production Outlook 
"Our focus on operational excellence continues to deliver results,"
said Williams. "With no major turnarounds planned in our oil sands
business in 2014 and further debottlenecking opportunities, we're set
for a strong year of continued production growth. In addition, we
expect to drive our oil sands cash operating costs below $35 per
barrel as we continue to focus on reliability and cost management." 
The Exploration and Production - International outlook assumes
production from assets in the U.K. sector of the North Sea and full
production from assets in Libya. Libyan production is contingent upon
the resolution of the ongoing political unrest. Production from Syria
is not included due to continued political unrest in that country. 


 
                                                      2014 full year outlook
                                                      Nov. 20, 2013         
----------------------------------------------------------------------------
Suncor Total Production (boe/d) (1)                   565,000 - 610,000     
Oil Sands (bpd)                                       400,000 - 430,000     
Syncrude (bpd)                                        32,000 - 36,000       
Exploration and Production - Canada (boe/d)           53,000 - 58,000       
Exploration and Production - International (boe/d)    80,000 - 86,000       
 (1)                                                                        
----------------------------------------------------------------------------
                                                                            
(1) Exploration and Production - International production includes a full   
    year of production of approximately 42,000 boe/d from its Libyan        
    operations. At the time of publication, Libyan production is shut in due
    to political unrest.                                                    

 
For more detail on Suncor's outlook and capital spending plan, see
suncor.com/guidance. 
Suncor's corporate guidance provides management's outlook for 2014 in
certain key areas of the company's business. Users of this
forward-looking information are cautioned that actual results may
vary materially from the targets disclosed. Readers are cautioned
against placing undue reliance on this guidance. 
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.  
Suncor's corporate guidance is based on the following assumptions
around oil prices: WTI, Cushing of US$93.00 per barrel; Brent, Sullom
Voe of US$100.00 per barrel; and WCS, Hardisity of US$70.00 per
barrel. In addition, the guidance is based on the assumption of a
natural gas price (AECO - C Spot) of Cdn. $3.86 per GJ and an
exchange rate (US$/Cdn$) of $0.97. Assumptions for the Oil Sands and
Syncrude 2014 production outlook include those relating to
reliability and operational efficiency initiatives that we expect
will minimize unplanned maintenance in 2014. Assumptions for the East
Coast Canada and International 2014 
production outlook include those
relating to reservoir performance, drilling results, facility
reliability, and the successful restart of production after planned
maintenance events. Factors that could potentially impact Suncor's
2014 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 projects, including new
facilities, storage and distribution infrastructure, debottlenecking
projects or well pads. Production rates during the commissioning and
start-up period are difficult to predict and can be impacted by
unplanned maintenance. Bitumen production levels are dependent on the
successful ramp up of recently commissioned facilities and well pads. 
- Unplanned maintenance. Production estimates could be negatively
impacted if unplanned work is required at any of our mining,
extraction, upgrading, in situ processing, refining, 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 or not executed effectively.
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. 
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
may be identified by words like "will", "expected", "guidance",
"plans", "outlook", "continue", "focus", "could", "potentially" and
similar expressions. Forward-looking statements in this news release
include references to the following: Suncor's capital spending plans
and planned production rates for 2014; Suncor's plan to be diligent
in pursuing only those projects that deliver long-term shareholder
value; Suncor's plan that there will be no major turnarounds in its
oil sands business in 2014, which, when combined with further
debottlenecking opportunities, will set a strong year for continued
production growth; and the expectation that oil sands cash operating
costs will be driven below $35 per barrel. 
Forward-looking statements 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 di
ffer 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. 
Suncor's Management's Discussion and Analysis dated October 30, 2013
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. 
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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