NEWS RELEASE TRANSMITTED BY Marketwired
FOR: Suncor Energy Inc.
TSX SYMBOL: SU
NYSE SYMBOL: SU
JULY 30, 2014
Suncor Energy reports second quarter results
CALGARY, ALBERTA--(Marketwired - July 30, 2014) -
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. 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, free cash flow, Oil Sands cash operating costs, and return on
capital employed (ROCE)) are not prescribed by Canadian generally accepted
accounting principles (GAAP). See the Non-GAAP Financial Measures section of
this news release. References to Oil Sands operations, production and cash
operating costs exclude Suncor's interest in Syncrude's operations.
"We continue to generate strong cash flow quarter after quarter,"
said Steve Williams, Suncor president and chief executive officer. "In the
second quarter, we took advantage of strong upstream pricing to generate $2.4
billion of cash flow from operations. We also reduced our cash operating costs
per barrel at Oil Sands operations by 27% from the second quarter of 2013,
thanks to a strong ramp up of Firebag production and our commitment to cost
- Operating earnings of $1.135 billion ($0.77 per common share) and net
earnings of $211 million ($0.14 per common share). Net earnings included
after-tax impairment charges of $718 million against the company's
interest in the Joslyn mining project, $297 million against the company's
Libyan assets, and $223 million related to other Oil Sands assets.
- Quarterly cash flow from operations of $2.406 billion ($1.64 per common
share), and a 66% increase in free cash flow to $3.599 billion for the twelve
months ended June 30, 2014, over the prior year period.
- Increased production at Firebag, combined with the company's continued
focus on cost management, enabled Suncor to achieve cash operating costs per
barrel of $34.10 for Oil Sands operations.
- Decision made to scale back certain development activities at the Joslyn
mining project, reinforcing Suncor's disciplined approach to capital
allocation and commitment to driving higher returns.
- Outlook for 2014 capital expenditures reduced to $6.8 billion from $7.8
billion, demonstrating Suncor's ongoing commitment to capital discipline.
- Suncor's Board of Directors has approved a dividend of $0.28 per common
share, a 22% increase over the previous quarter dividend, reinforcing the
company's commitment and ability to return cash to shareholders.
Suncor Energy Inc. delivered solid financial results in the second quarter of
2014, including operating earnings of $1.135 billion ($0.77 per common share)
and cash flow from operations of $2.406 billion ($1.64 per common share),
compared to $934 million ($0.62 per common share) and $2.250 billion ($1.49 per
common share), respectively, in the prior year quarter. Current quarter results
were led by increased production at Oil Sands and strong upstream price
realizations, partially offset by lower production volumes in Exploration and
Production, as well as higher share-based compensation expense and natural gas
input costs. For the twelve months ended June 30, 2014, free cash flow
increased to $3.599 billion, compared to $2.167 billion for the twelve months
ended June 30, 2013.
Net earnings were $211 million ($0.14 per common share) for the second quarter
of 2014, compared with net earnings of $680 million ($0.45 per common share)
for the prior year quarter. Net earnings for the second quarter of 2014 were
negatively impacted by after-tax impairment charges of $718 million on the
company's interest in the Joslyn mining project, $297 million against the
company's Libyan assets, and $223 million in Oil Sands following a review
of certain assets that no longer fit with Suncor's previously revised
growth strategies and which could not be repurposed or otherwise deployed.
These factors were partially offset by after-tax earnings of $32 million
related to a reserves redetermination in the Exploration and Production
segment, and the impact of an after-tax foreign exchange gain on the
revaluation of U.S. dollar denominated debt of $282 million, compared to an
after-tax foreign exchange loss of $254 million in the prior year quarter.
"Before we outline our operating results, I want to affirm our ongoing
commitment to safety," said Williams. "I am deeply saddened by the
fatalities in the first half of the year. Our entire organization is engaged in
improving our safety performance. Safety is our number one value and a critical
part of operational excellence."
Suncor's current quarterly results continued to benefit from a profitable
portfolio comprising nearly 100% crude-oil weighted production, compared to 91%
in the prior year quarter. Suncor's total upstream production was 518,400
barrels of oil equivalent per day (boe/d) in the second quarter of 2014, an
increase from 500,100 boe/d in the prior year quarter, reflecting higher
production volumes in Oil Sands, partially offset by the sale of the
conventional natural gas business and negligible production in Libya.
Production volumes for Oil Sands operations increased to an average of 378,800
barrels per day (bbls/d) in the second quarter of 2014, compared to 276,600
bbls/d in the prior year quarter, primarily due to lower planned and unplanned
maintenance in the current year quarter compared to the prior year quarter,
which included the impacts of the Upgrader 1 turnaround. Production in the
current year quarter included the successful ramp up of Firebag, following the
commissioning of the hot bitumen infrastructure assets in the third quarter of
2013. Production in the current year quarter further benefited from strong
Firebag infill well performance which was partially offset by planned and
unplanned maintenance events in upgrading and extraction, as well as a
third-party pipeline outage which decreased takeaway capacity.
Cash operating costs per barrel for Oil Sands operations decreased in the
second quarter of 2014 to an average of $34.10/bbl, compared to $46.55/bbl in
the prior year quarter, primarily due to higher production volumes. Total cash
operating costs remained consistent with the prior year, despite the increase
in production and higher natural gas input costs.
Suncor's share of Syncrude production decreased to 24,300 bbls/d in the
second quarter of 2014 from 32,800 bbls/d in the prior year quarter, due
primarily to planned and unplanned coker maintenance.
Production volumes for the Exploration and Production segment decreased to
115,300 boe/d in the second quarter of 2014, compared to 190,700 boe/d in the
prior year quarter, primarily due to the sale of the company's
conventional natural gas business and negligible production in Libya due to
continued political unrest.
During the second quarter of 2014, Refining and Marketing successfully
completed a five-week planned maintenance event at the Montreal refinery and a
seven-week planned maintenance event at the Edmonton refinery, resulting in a
decrease in average refinery utilization to 85% compared to 90% in the prior
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. In the second quarter of 2014, Suncor delivered value to
shareholders through $338 million in dividends ($0.23 per common share) and
$271 million in share repurchases, demonstrating the company's ongoing
commitment to deliver cash to shareholders through dividends and value-driven
Further delivering on this commitment, subsequent to the quarter, Suncor's
Board of Directors approved a quarterly dividend of $0.28 per common share, a
22% increase over the previous dividend.
"We continue to focus squarely on profitable growth. This means we're
disciplined with our capital and invest wisely in high-return projects,"
said Williams. "This prudent approach and our cash generating ability have
enabled us to increase our quarterly dividend to shareholders."
Investing in Integration and Market Access
Suncor's solid financial quarter was in part due to further integration
and market access initiatives that ramped up in the second quarter of 2014.
Refining and Marketing increased rail shipments of inland priced crudes to the
Montreal refinery to 36,000 bbls/d in the second quarter of 2014 and continued
marine shipments of lower priced crudes from the U.S. Gulf Coast to the
Montreal refinery when market conditions were favourable. In July 2014, the
company completed the acquisition of a sulphur recovery facility for
approximately $120 million that will be integrated into the Montreal refinery
operations and is expected to secure the refinery's long-term sulphur
The company also continued to transport crude on TransCanada's Gulf Coast
pipeline which has provided more than 70,000 bbls/d of increased access to U.S.
Gulf Coast pricing for both light and heavy crudes. The company's
integrated model and strong market access position resulted in Suncor capturing
global-based pricing on volumes equivalent to nearly 100% of its upstream
production in the second quarter of 2014.
Oil Sands Operations
Suncor continues to focus on investments in its tailings management and water
management strategies. As part of the water management strategy, Suncor
commissioned a water treatment plant in the second quarter of 2014, which is
expected to increase the reuse and recycling of waste water and reduce
freshwater withdrawal. During the second quarter of 2014, Suncor, along with
five other project partners, also approved the construction of a Water
Technology Development Centre (WTDC) scheduled to become operational in early
2017. The WTDC will connect to Suncor's Firebag operations, providing an
environment to test water treatment and recycling technologies without
affecting production at the in situ facility.
The company reached a milestone in the second quarter by achieving first steam
on the well pads associated with the MacKay River facility debottleneck
project, with first oil expected in the third quarter of 2014. The debottleneck
project is intended to increase production capacity by approximately 20%, for
total capacity of 38,000 bbls/d by the end of 2015. Suncor also continues to
work towards a 2014 sanction decision on the MacKay River expansion project,
which is targeted to have an initial design capacity of approximately 20,000
bbls/d. In addition, Suncor continues to advance further debottlenecking
initiatives in logistics infrastructure and at the Firebag facilities.
Oil Sands Ventures
Fort Hills mining project activities continue to focus on detailed engineering,
procurement and the ramp up of field construction activities. Detailed
engineering work was approximately 40% complete by the end of the second
quarter. Key construction activities during the quarter included foundation
concrete pours and commencing with construction of primary extraction
separation cells. The project is expected to provide Suncor with approximately
73,000 bbls/d of bitumen, with first oil expected in the fourth quarter of 2017
and reaching 90% of its planned capacity within twelve months thereafter.
In May 2014, Total E&P Canada Ltd. (Total E&P), the operator of the
Joslyn mining project, together with Suncor and the other co-owners of the
project, agreed to scale back certain development activities in order to focus
on engineering studies to further optimize the project development plan. As a
result of Suncor's assessment of expected future net cashflows and the
uncertainty of the project, including the timing of the development plans,
Suncor recorded an after-tax charge to net earnings of $718 million against its
interest in the project. Suncor continues to believe that Joslyn is a quality
resource with development potential given the right design and execution
strategy and continues to work with Total E&P and the other co-owners to
explore ways to further optimize the project development plan.
Exploration and Production
A significant milestone was reached at the Golden Eagle project in the second
quarter with the successful installation of key offshore facilities. Drilling
activities continued in the quarter, and the project remains on track to
achieve first oil in late 2014 or early 2015. At the Hebron project,
construction of the gravity-based structure and topsides continued in the
second quarter of 2014, with the project expected to achieve first oil in 2017.
In addition, the company signed a farm-in agreement with Shell Canada to
acquire a 20% interest in a deepwater exploration opportunity in the Shelburne
Basin, offshore Nova Scotia.
The company has a number of extension projects in East Coast Canada, which
leverage existing facilities and infrastructure. Following the completion of
subsea installation for the Hibernia Southern Extension Unit in 2013, drilling
activities continued in the second quarter of 2014. The second phase of the
South White Rose Extension project continued in the second quarter of 2014. The
Hibernia Southern Extension Unit and South White Rose Extension projects are
expected to increase overall production starting in 2015 and extend the
productive life of the existing fields. A funding decision for further
development of the Ben Nevis-Avalon reservoir at Hibernia is expected in the
third quarter of 2014. A sanction decision for further expansion into the West
White Rose field is targeted for late 2014.
Political unrest that impacted the Libyan export terminal operations in the
second half of 2013 continued into the first half of 2014. In July 2014, the
last two affected terminals were reopened and the Libya National Oil Company
announced the lifting of force majeure on oil exports from these terminals.
However, the region remains volatile and the timing of oil sales and the
company's ability to return to normal production levels remains uncertain.
As a result, Suncor recorded an after-tax charge to net earnings of $297
million against its assets in Libya.
Operating Earnings Reconciliation(1)
Three months ended Six months ended
June 30 June 30
($ millions) 2014 2013 2014 2013
Net earnings 211 680 1 696 1 774
Unrealized foreign exchange
(gain) loss on U.S. dollar
denominated debt (282) 254 26 400
Impairments(2) 1 238 - 1 238 -
Reserves redetermination(3) (32) - (32) -
Net impact of not proceeding
with the Voyageur upgrader
project(4) - - - 127
Operating earnings(1) 1 135 934 2 928 2 301
(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 Suncor's Management's Discussion and
Analysis dated July 30, 2014 (the "MD&A").
(2) Reflects the after-tax impairment charges of $718 million on the
company's interest in the Joslyn mining project, $297 million against
the company's Libyan assets, and $223 million related to certain assets
in the Oil Sands segment following a review of repurpose options due to
previously revised growth strategies.
(3) Reflects the reserves redetermination of 1.2 million barrels of oil
receivable related to an interest in a Norwegian asset that Suncor
(4) Represents the expected cost of not proceeding with the project,
including costs related to decommissioning and restoration of the
Voyageur site, and contract cancellations.
Suncor has updated its 2014 corporate guidance previously issued on April 28,
2014. The key changes to the company's guidance are presented below:
- The outlook for capital expenditures has been lowered from $7.8 billion to
$6.8 billion, consistent with the company's ongoing commitment to capital
discipline. The forecasted capital reduction includes deferred spending on
pre-sanction growth projects to optimize project economics, cancellation of
sustaining capital projects that are not critical for safe and reliable
operations, delays in offshore exploratory drilling programs, and suspension of
activities in Libya.
2014 Full Year Outlook 2014 Full Year Outlook
April 28, 2014 Revised July 30, 2014
($ millions) Sustaining Growth Total Sustaining Growth Total
Oil Sands 2 525 1 925 4 450 2 235 1 610 3 845
Oil Sands operations 2 270 580 2 850 1 995 320 2 315
Oil Sands ventures 255 1 345 1 600 240 1 290 1 530
Exploration and Production 120 1 880 2 000 65 1 675 1 740
Refining and Marketing 740 220 960 770 190 960
Corporate, Energy Trading
and Eliminations 185 205 390 130 125 255
3 570 4 230 7 800 3 200 3 600 6 800
(1) Capital expenditures exclude capitalized interest of $400 million to
$500 million and exclude the Montreal refinery's acquisition of the
sulphur recovery facility (approximately $120 million) which closed in
(2) For definitions of growth and sustaining capital expenditures, see the
Capital Investment Update section of the MD&A.
-- The range for current income taxes has been adjusted to $2.2 billion- $2.7 billion from $1.7 billion-$2.3 billion and the range for Oil Sands
Crown royalty rates has been adjusted to 5%-8% from 4%-7%, primarily due
to observed price realizations for the year to date and assumptions for
the second half of 2014.
-- Due to observed commodity prices for the year to date, the following
commodity price assumptions have been adjusted for the remainder of
2014: Brent, Sullom Voe from US$100.00/bbl previously to US$105.00/bbl;
West Texas Intermediate crude oil at Cushing from US$93.00/bbl
previously to US$98.00/bbl; and Western Canadian Select at Hardisty from
US$70.00/bbl previously to US$75.00/bbl.
For further details and advisories regarding Suncor's 2014 revised
corporate guidance, see suncor.com/guidance.
Normal Course Issuer Bid
Subsequent to June 30, 2014, the Toronto Stock Exchange (TSX) accepted a notice
filed by Suncor of its intention to renew its normal course issuer bid (the
NCIB) to continue to purchase shares under its previously announced buyback
program 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 $1.1 billion worth of its common shares
beginning August 5, 2014 and ending August 4, 2015.
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 23, 2013 and
July 23, 2014, and pursuant to Suncor's previously announced normal course
issuer bids, Suncor successfully completed the purchase of approximately $1.7
billion worth of its common shares (44,877,773), at a weighted average price of
$37.85 per common share. As at July 23, 2014, Suncor had 1,465,260,522 common
shares issued and outstanding. Pursuant to the NCIB, Suncor has agreed that it
will not purchase more than 44,045,388 common shares, which is equal to
approximately 3% of Suncor's issued and outstanding common shares.
Subject to the 'block purchase exemption' that is available to Suncor
for regular open market purchases under the NCIB, Suncor will limit daily
purchases of Suncor common shares on the TSX in connection with the NCIB to no
more than 25% (604,298) 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 NCIB.
Amendments and Additions to By-laws, including Advance Notice
In order to meet recommended good governance practices, Suncor's Board of
Directors (the Board) has approved an amendment to Suncor's general
operating by-law (By-Law No. 1) to: (i) change the quorum for shareholder
meetings to 25% from 10%; and (ii) remove the casting vote previously granted
to the Chair of directors' and shareholders' meetings.
In addition, the Board has approved an advance notice by-law (By-Law No. 2) for
Suncor. Among other things, By-Law No. 2 fixes a deadline by which shareholders
must submit a notice of director nominations to Suncor prior to any annual or
special meeting of shareholders where directors are to be elected and sets
forth the information that a shareholder must include in the notice for it to
be valid. Advance notice by-laws benefit shareholders by facilitating an
orderly and efficient meeting process, ensuring that all shareholders receive
adequate notice of director nominations and sufficient information with respect
to all nominees. This allows Suncor and shareholders to evaluate each
nominee's qualifications and suitability as a director of Suncor so
shareholders can cast an informed vote.
The amended By-Law No. 1 and By-Law No. 2 are effective immediately, subject to
confirmation and ratification by the shareholders. At the next meeting of
shareholders of Suncor, shareholders will be asked to confirm and ratify the
amended By-Law No. 1 and By-Law No.2. The full text of each of the amended
By-Law No. 1 and By-Law No. 2 have been filed under Suncor's profile at
sedar.com, and posted on Suncor's website at suncor.com.
Certain crude oil and natural gas liquids volumes in this report to
shareholders have been converted to mcfe on the basis of one bbl to six mcf.
Also, certain natural gas volumes have been converted to boe or mboe on the
same basis. See the Measurement Conversions section of the MD&A.
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 section of the MD&A. Cash
flow from operations, free cash flow and ROCE are defined and reconciled to
GAAP measures in the Non-GAAP Financial Measures Advisory section of the
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
Forward-looking statements in this news release include references to: the
company's capital allocation plans and its anticipated capital spend of
$6.8 billion; Suncor's expected range of current income taxes and Oil
Sands Crown royalty rates; Suncor's discipline with its capital and its
goal of investing wisely in high-return projects; the sulphur recovery facility
acquired by Suncor is expected to be integrated into the Montreal refinery
operations and secure the refinery's long-term sulphur recovery needs; the
water treatment plant which was commissioned in the second quarter of 2014,
which is expected to increase the reuse and recycling of waste water and reduce
freshwater withdrawal; the expectation that the Water Technology Development
Centre will become operational in early 2017 and will connect to our Firebag
operations, providing an environment to test water treatment and recycling
technologies without affecting production at the in situ facility; the
debottleneck project at the MacKay River facilities is expected to increase
production capacity by approximately 20% by the end of 2015 for a total
capacity of 38,000 bbls/d, with first oil expected in the third quarter of
2014; the company expects to continue 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; the expectation that the Fort
Hills project will provide Suncor with approximately 73,000 bbls/d of bitumen,
with first oil expected in the fourth quarter of 2017 and reaching 90% of its
planned capacity within twelve months thereafter; the company's goal of
further optimizing the Joslyn project development plan at the Joslyn mining
project; Suncor's belief that Joslyn is a quality resource with
development potential given the right design and execution strategy; the Golden
Eagle project is expected to achieve first oil in late 2014 or early 2015; the
Hebron project is expected to achieve first oil in 2017; the Hibernia Southern
Extension Unit and South White Rose Extension projects are expected to increase
the overall production starting in 2015 and extend the productive life of the
existing fields; a funding decision for further development of the Ben-Nevis
Avalon reservoir at Hibernia is expected in the third quarter of 2014; the
South White Rose Extension project is expected to be completed in the third
quarter of 2014; a sanction decision for further expansion into the western
portion of the White Rose field is targeted for late 2014; and the impairments
calculated in connection with the Joslyn mining project, certain of
Suncor's Oil Sands assets and Suncor's Libyan operations.
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 the
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, such as the Notice of
Reassessment received by Suncor from the Canada Revenue Agency relating to the
settlement of certain derivative contracts, including the risk that: (i) Suncor
may not be able to successfully defend its original filing position and
ultimately be required to pay increased taxes, interest and penalty as a
result, and (ii) Suncor may be required to post cash instead of security in
relation to the Notice of Reassessment; 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; outages to third-party
infrastructure that could cause disruptions to production; 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 cyberterrorists, 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
The MD&A and Suncor's Annual Information, Form 40-F and Annual Report
to Shareholders, each dated February 28, 2014, 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 firstname.lastname@example.org or by referring to the company's profile on SEDAR at
sedar.com or EDGAR at 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
For more information about Suncor Energy visit our web site at suncor.com,
follow us on Twitter @SuncorEnergy, read our blog, OSQAR or come and See what
Yes can do.
A full copy of Suncor's second quarter 2014 Report to Shareholders and the
financial statements and notes (unaudited) can be downloaded at
To listen to the conference call discussing Suncor's second quarter
results, visit suncor.com/webcasts.
FOR FURTHER INFORMATION PLEASE CONTACT:
INDUSTRY: Energy and Utilities - Oil and Gas
-0- Jul/31/2014 02:00 GMT
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