Suncor Energy Announces 2018 Capital Program and Production Outlook

All financial figures are in Canadian dollars

Suncor has released its 2018 corporate guidance which includes a capital program of between $4.5 and $5.0 billion and average upstream production of 740,000 to 780,000 barrels of oil equivalent per day (boe/d). The midpoints of these ranges represent a year over year production increase of more than 10 per cent and a capital spending reduction of approximately $750 million.

Suncor's Oil Sands operations cash operating costs per barrel are maintained at $23.00 - $26.00 despite the five-year major planned maintenance turnaround at Upgrader 1. Oil Sands operations cash operating costs exclude Fort Hills and Syncrude. Fort Hills cash operating costs are expected to steadily decrease throughout the year as production ramps up to 90 per cent of capacity and cash operating costs fall to the $20.00 - $30.00/bbl range by the fourth quarter of 2018. Syncrude cash operating costs per barrel are expected to be $32.50 - $35.50.

"During an extended period of low oil prices, we've demonstrated that we can generate significant free cash flow and strong returns for shareholders while continuing to drive down our operating costs and delivering significant future growth by executing two major projects. With first oil at both Fort Hills and Hebron expected by year end, we're bringing on new production at the same time as oil prices are rising to their highest level in several years," said Steve Williams, president and chief executive officer. "As we look to 2018, with increasing production and reduced capital spending, we're well-positioned to return more free cash flow to shareholders through dividends and share buybacks."

Suncor's 2018 capital program is largely focused on sustaining capital given the major planned maintenance programs in both Oil Sands upgrading operations and Downstream refineries including a total plant turnaround at the Edmonton refinery. These investments are critical to ensure continued safe, reliable and efficient operations.

Approximately 25 per cent of the 2018 capital spending program is allocated towards upstream growth projects in the Oil Sands and Exploration & Production businesses.

Suncor's corporate guidance provides management's outlook for 2018 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.

Capital Expenditures (C$ millions) (1)      
Full Year Outlook
November 15, 2017
 % Growth Capital (2) 
Upstream3,650-4,050 30%
Downstream800-850 0%
Corporate50-100 0%
Total4,500-5,000 25%
(1)Capital expenditures exclude capitalized interest of approximately $115 million.
(2)Balance of capital expenditures represents sustaining capital. For definitions of growth and sustaining capital expenditures, see the Capital Investment Update section of Suncor's Management Discussion and Analysis dated October 25, 2017 (the "MD&A").
 2018 Full Year Outlook
November 15, 2017
Suncor Total Production (boe/d) (1)740,000 -780,000 
Oil Sands Operations (bbls/d)425,000 -455,000 
Fort Hills (bbls/d) (2) Suncor working interest of 50.8%50,000 -60,000 
Syncrude (bbls/d) Suncor working interest of 53.74%150,000 -165,000 
Exploration & Production (boe/d) (1)105,000 -115,000 
Suncor Refinery Throughput (bbls/d)415,000 -435,000 
Suncor Refinery Utilization (3)90%-94%
(1)At the time of publication, production in Libya continues to be affected by political unrest and therefore no forward looking production for Libya is factored into the Exploration and Production and Suncor Total Production guidance. Production ranges for Oil Sands operations, Fort Hills, Syncrude and Exploration and Production are not intended to add to equal Suncor Total Production.
(2)Suncor's outlook for 2018 Fort Hills Production is currently 20,000 - 40,000 bbls/d in Q1, 30,000 - 50,000 bbls/d in Q2, 60,000 - 70,000 bbls/d in Q3, and 80,000 - 90,000 bbls/d in Q4. Suncor's outlook for 2018 Fort Hills cash operating costs per barrel is $70/bbl - $80/bbl in Q1, $40/bbl - $50/bbl in Q2, $30/bbl - $40/bbl in Q3, and $20/bbl - $30/bbl in Q4.
(3)Refinery utilization is based on the following crude processing capacities: Montreal - 137,000 bbls/d; Sarnia - 85,000 bbls/d; Edmonton - 142,000 bbls/d; and Commerce City - 98,000 bbls/d.

For more detail on Suncor's outlook and capital spending plan, see

For an updated Investor Relations presentation and the third quarter Investor Relations deck, see

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