Helium Market on the Verge of Change as Demand Grows

Until in any other case famous, all monetary figures are unaudited, offered in Canadian {dollars} (Cdn$), and have been ready in accordance with Worldwide Monetary Reporting Requirements (IFRS), particularly Worldwide Accounting Customary (IAS) 34 Interim Monetary Reporting as issued by the Worldwide Accounting Requirements Board. Manufacturing volumes are offered on a working-interest foundation, earlier than royalties, apart from manufacturing values from the corporate’s Libya operations, that are offered on an financial foundation. Sure monetary measures referred to on this information launch (adjusted funds from operations, adjusted working earnings, internet debt, last-in, first-out (LIFO) stock valuation methodology and free funds stream) should not prescribed by Canadian usually accepted accounting rules (GAAP). See the Non-GAAP Monetary Measures part of this information launch. References to Oil Sands operations exclude Suncor Vitality Inc.’s curiosity in Fort Hills and Syncrude.

Suncor Vitality Inc. (TSX: SU) (NYSE: SU)

“As we drive the main focus of the corporate on operational execution, we delivered $4.5 billion in adjusted funds from operations within the third quarter, the second highest within the firm’s historical past, pushed by robust refinery throughput within the downstream, supply of strong upstream manufacturing as we executed deliberate upkeep, per what now we have beforehand communicated, and a strong enterprise surroundings,” mentioned Kris Smith, Interim President and Chief Govt Officer. “These robust working money flows, in addition to proceeds from asset inclinations within the quarter, supported the execution of our capital allocation technique. We returned roughly $1.7 billion of worth to shareholders in the course of the third quarter, and the not too long ago accomplished debt tender of roughly $3.6 billion represents structural long-term debt discount.”

• Adjusted funds from operations elevated to $4.473 billion ($3.28 per frequent share) within the third quarter of 2022, in comparison with $2.641 billion ($1.79 per frequent share) within the prior 12 months quarter. Money stream supplied by working actions, which incorporates modifications in non-cash working capital, was $4.449 billion ($3.26 per frequent share) within the third quarter of 2022, in comparison with $4.718 billion ($3.19 per frequent share) within the prior 12 months quarter.
• Adjusted working earnings elevated to $2.565 billion ($1.88 per frequent share) within the third quarter of 2022, in comparison with $1.043 billion ($0.71 per frequent share) within the prior 12 months quarter. The corporate had a internet lack of $609 million ($0.45 per frequent share) within the third quarter of 2022, in comparison with internet earnings of $877 million ($0.59 per frequent share) within the prior 12 months quarter. The online loss within the third quarter of 2022 included a non-cash impairment cost of $3.397 billion towards the corporate’s share of the Fort Hills belongings, a $723 million unrealized overseas trade loss on the revaluation of U.S. greenback denominated debt recorded in financing bills and a $866 million revenue tax restoration associated to the gadgets famous.
• Oil Sands generated $3.257 billion in adjusted funds from operations⁽¹⁾ within the third quarter of 2022, in comparison with $1.745 billion within the prior 12 months quarter. Manufacturing from the corporate’s Oil Sands belongings was 646,000 barrels per day (bbls/d) within the third quarter of 2022, in comparison with 605,100 bbls/d within the prior 12 months quarter. Manufacturing within the present interval displays elevated manufacturing at Oil Sands Base because of decreased deliberate upkeep actions within the present quarter, elevated manufacturing at Fort Hills and the influence of deliberate turnaround actions at Syncrude.
• Within the third quarter of 2022, dependable operations resulted in refinery crude throughput of 466,600 bbls/d and utilization of 100%, in comparison with 460,300 bbls/d and 99%, respectively, within the prior 12 months quarter. The corporate leveraged its in depth home gross sales community and export channels to realize refined product gross sales of 577,300 bbls/d, in comparison with 551,500 bbls/d within the prior 12 months quarter. In consequence, Refining and Advertising (R&M) generated roughly $1.8 billion in adjusted funds from operations⁽¹⁾, excluding the impacts of a first-in, first-out (FIFO) stock valuation loss⁽²⁾ of $585 million, in comparison with roughly $1.0 billion of adjusted funds from operations within the prior 12 months quarter, excluding the impacts of a $91 million FIFO acquire.
• Within the third quarter of 2022, Suncor continued to ship on its technique of rising shareholder returns, returning roughly $1.7 billion of worth to its shareholders via roughly $1.0 billion in share repurchases and $638 million of dividends, in comparison with roughly $1.0 billion within the prior 12 months quarter via $704 million in share repurchases and $309 million of dividends. As at October 31, 2022, for the reason that begin of the 12 months, the corporate has repurchased roughly $4.6 billion of its frequent shares, representing roughly 104.7 million frequent shares at a mean share value of $44.01 per frequent share, or the equal of seven.3% of its frequent shares as at December 31, 2021.
• In assist of its debt discount and annual capital allocation targets, the corporate diminished internet debt by roughly $1.8 billion within the third quarter of 2022, excluding the influence of a $723 million unrealized overseas trade loss on the revaluation of U.S. greenback denominated debt.
• Subsequent to the quarter, Suncor executed a debt tender supply and, because of this, repaid roughly $3.6 billion of its varied notes under par. This structural discount of long-term debt was executed throughout opportunistic market circumstances and demonstrates the corporate’s confidence in its enterprise and dedication to lowering internet debt.
• In alignment with Suncor’s technique to maximise worth via its core enterprise, the corporate continues to optimize and streamline its portfolio. Within the third quarter of 2022, the corporate accomplished the sale of its Exploration and Manufacturing (E&P) belongings in Norway. Subsequent to the third quarter of 2022, the corporate reached an settlement for the sale of its wind and photo voltaic belongings for gross proceeds of roughly $730 million, earlier than closing changes and different closing prices, which is anticipated to be accomplished within the first quarter of 2023. The sale course of for the corporate’s U.Okay. E&P portfolio is progressing, with a sale anticipated to shut inside the subsequent twelve months.
• Subsequent to the third quarter of 2022, Suncor entered into an settlement, topic to regulatory approval and different closing circumstances, to amass Teck Assets Restricted (Teck) 21.3% working curiosity in Fort Hills Vitality L.P. (Fort Hills) and its related gross sales and logistics agreements for $1.0 billion, earlier than closing changes and different closing prices, bringing the entire combination working curiosity of Suncor and its affiliate to 75.4%. The transaction meets Suncor’s return goals and builds upon the corporate’s technique to optimize its portfolio round its core belongings. The transaction is anticipated to shut within the first quarter of 2023.

Monetary Outcomes

Adjusted Working Earnings

Suncor’s adjusted working earnings elevated to $2.565 billion ($1.88 per frequent share) within the third quarter of 2022, in comparison with $1.043 billion ($0.71 per frequent share) within the prior 12 months quarter, primarily because of considerably larger crude oil and refined product realizations, reflecting the improved enterprise surroundings within the present quarter, and better upstream manufacturing. The rise in adjusted working earnings was partially offset by elevated revenue taxes, royalties and working bills within the present quarter. The rise in working bills was primarily associated to a major improve in commodity enter prices, elevated upkeep and better prices related to elevated Oil Sands manufacturing. Adjusted working earnings had been additionally impacted by a weakening in benchmark pricing in the course of the present quarter, in comparison with a strengthening in benchmark pricing within the prior 12 months quarter, leading to a FIFO stock valuation loss partially offset by a realization of intersegment revenue within the third quarter of 2022, in comparison with a FIFO stock valuation acquire partially offset by a deferral of intersegment revenue within the third quarter of 2021.

Web Earnings

The corporate had a internet lack of $609 million ($0.45 per frequent share) within the third quarter of 2022, in comparison with internet earnings of $877 million ($0.59 per frequent share) within the prior 12 months quarter. Along with the components impacting adjusted working earnings mentioned above, the web loss for the third quarter of 2022 included a non-cash impairment of $3.397 billion towards the corporate’s share of the Fort Hills belongings, a $723 million unrealized overseas trade loss on the revaluation of U.S. greenback denominated debt recorded in financing bills, the popularity of $147 million of insurance coverage proceeds associated to the corporate’s belongings in Libya recorded in different revenue (loss), a $65 million overseas trade loss associated to the sale of the corporate’s share of its E&P belongings in Norway, a $7 million unrealized acquire on danger administration actions recorded in different revenue (loss) and an $857 million revenue tax restoration associated to the gadgets famous. Web earnings within the prior 12 months quarter included a $282 million unrealized overseas trade loss on the revaluation of U.S. greenback denominated debt recorded in financing bills, a non-cash impairment reversal of $221 million towards the corporate’s share of the Terra Nova belongings, an $80 million loss for the early compensation of long-term debt, a $22 million unrealized loss on danger administration actions recorded in different revenue (loss) and a $3 million revenue tax expense associated to the gadgets famous.

Adjusted Working Earnings Reconciliation⁽¹⁾

(1) Adjusted working earnings is a non-GAAP monetary measure. All reconciling gadgets are offered on a before-tax foundation and adjusted for revenue taxes within the revenue tax (restoration) expense on adjusted working earnings changes line. See the Non-GAAP Monetary Measures part of this information launch.

Adjusted Funds from Operations and Money Circulate Offered by Working Actions

Adjusted funds from operations elevated to $4.473 billion ($3.28 per frequent share) within the third quarter of 2022, in comparison with $2.641 billion ($1.79 per frequent share) within the prior 12 months quarter. Adjusted funds from operations had been influenced by the identical components impacting adjusted working earnings famous above.

Money stream supplied by working actions, which incorporates modifications in non-cash working capital, was $4.449 billion ($3.26 per frequent share) for the third quarter of 2022, in comparison with $4.718 billion ($3.19 per frequent share) within the prior 12 months quarter. Along with the components impacting adjusted funds from operations, money stream supplied by working actions was impacted by a use of money related to the corporate’s working capital balances within the third quarter of 2022, in comparison with a major supply of money within the prior 12 months quarter. The supply of money within the prior 12 months quarter was primarily because of a rise in accounts payable and accrued liabilities and the receipt of the corporate’s 2020 federal revenue tax refund.

Working Outcomes

Suncor’s complete upstream manufacturing elevated to 724,100 barrels of oil equal per day (boe/d) within the third quarter of 2022, in comparison with 698,600 boe/d within the prior 12 months quarter, reflecting elevated manufacturing from the corporate’s Oil Sands belongings, which was partially offset by decreased manufacturing from the corporate’s E&P belongings.

The corporate’s non-upgraded bitumen manufacturing elevated to 240,900 bbls/d within the third quarter of 2022, in comparison with 199,600 bbls/d within the third quarter of 2021, primarily because of elevated manufacturing from Fort Hills. Manufacturing from the corporate’s In Situ belongings within the third quarter of 2022 was corresponding to the prior 12 months quarter. At Fort Hills, as the corporate begins the execution of its mine enchancment plan, diminished volumes are anticipated within the fourth quarter of 2022, in addition to into the primary quarter of 2023.

The corporate’s internet artificial crude oil manufacturing was 405,100 bbls/d within the third quarter of 2022, corresponding to 405,500 bbls/d within the third quarter of 2021. Manufacturing at Syncrude within the third quarter of 2022 was impacted by deliberate turnaround actions, leading to upgrader utilization of 67%, in comparison with 91% within the prior 12 months quarter. At Oil Sands Base, upgrader utilization elevated to 80%, in comparison with 66% within the prior 12 months quarter, reflecting decrease deliberate upkeep actions within the present quarter, because the prior 12 months quarter was impacted by a major deliberate turnaround at Upgrader 2. Subsequent to the quarter, the corporate efficiently accomplished its turnaround actions.

E&P manufacturing in the course of the third quarter of 2022 was 78,100 boe/d, in comparison with 93,500 boe/d within the prior 12 months quarter. The lower in manufacturing was primarily as a result of sale of the corporate’s working curiosity within the Golden Eagle Space Growth within the fourth quarter of 2021, the influence of deliberate turnaround actions at Hibernia within the third quarter of 2022, and pure declines, partially offset by elevated manufacturing from Norway.

Refinery crude throughput was 466,600 bbls/d and refinery utilization was 100% within the third quarter of 2022, in comparison with 460,300 bbls/d and 99% within the prior 12 months quarter, reflecting robust utilizations throughout all refineries in each durations. Refined product gross sales within the third quarter of 2022 elevated to 577,300 bbls/d, in comparison with 551,500 bbls/d within the prior 12 months quarter. The rise in refined product gross sales mirrored elevated demand within the present interval, mixed with the corporate’s capacity to leverage its in depth home gross sales community and export channels.

“Sturdy operations at our refining belongings resulted within the third highest crude throughput in our firm’s historical past, and contributed to robust refined product gross sales in the course of the quarter,” mentioned Smith. “Elevated utilization of the interconnecting pipelines helped to attenuate the influence of great deliberate upstream turnaround actions within the third quarter. All main deliberate upkeep on our belongings has been accomplished early within the fourth quarter, and we stay targeted on protected, dependable operations.”

The corporate’s complete working, promoting and normal bills had been $3.075 billion within the third quarter of 2022, in comparison with $2.768 billion within the prior 12 months quarter. The rise was primarily because of a major improve in commodity enter prices, together with larger pure fuel costs, elevated upkeep and better prices related to elevated Oil Sands manufacturing. The corporate’s publicity to larger pure fuel prices is partially mitigated by income from energy gross sales that’s recorded in working revenues.

Technique Replace

Suncor’s high precedence is enhancing its security and operational efficiency. The corporate’s capacity to ship on its operational excellence priorities and drive improved working efficiency, by working safely, reliably and effectively, is underpinned by Suncor’s worth of security above all else. Suncor goals to additional develop its profitability by focusing the corporate’s capital investments on high-value money stream initiatives that assist its incremental free funds stream targets, whereas persevering with to regulate and streamline its portfolio to optimize its base enterprise.

The corporate has made disciplined selections to regulate and streamline its portfolio to allow higher match and focus of its portfolio. Through the third quarter of 2022, the corporate accomplished the sale of its E&P belongings in Norway for gross proceeds of roughly $430 million, earlier than closing changes and different closing prices. Subsequent to the third quarter of 2022, the corporate reached an settlement for the sale of its wind and photo voltaic belongings for gross proceeds of roughly $730 million, earlier than closing changes and different closing prices. The sale is pending regulatory approval, and is anticipated to be accomplished within the first quarter of 2023. The sale course of for the corporate’s U.Okay. E&P portfolio is progressing, with a sale anticipated to shut inside the subsequent twelve months. The corporate can also be enterprise a strategic evaluate of its downstream retail enterprise with the purpose of unlocking long-term worth. The strategic evaluate is anticipated to be accomplished within the fourth quarter of 2022, at which period an replace might be supplied.

Subsequent to the third quarter of 2022, Suncor entered into an settlement, topic to regulatory approval and different closing circumstances, to amass Teck’s 21.3% working curiosity in Fort Hills and its related gross sales and logistics agreements for $1.0 billion, earlier than closing changes and different closing prices, bringing the entire combination working curiosity of Suncor and its affiliate to 75.4%. The transaction meets Suncor’s return goals, offering long-term worth for the corporate by including roughly 40,000 bbls/d of bitumen manufacturing capability, and builds upon the corporate’s technique to optimize its portfolio round its core belongings. The transaction is anticipated to shut within the first quarter of 2023.

“We proceed to optimize and streamline our portfolio to pay attention our efforts on, and drive worth from, our core enterprise. Now we have accomplished our Norway asset sale, have reached an settlement for the sale of our wind and photo voltaic belongings and are progressing the sale of our U.Okay. E&P portfolio,” mentioned Smith. “The acquisition of further curiosity in Fort Hills is a strategic match with our concentrate on core belongings, and underscores our confidence within the long-term worth of the Fort Hills undertaking.”

The corporate is dedicated to allocating extra funds in accordance with its capital allocation framework; strengthening its steadiness sheet via debt reductions and maximizing shareholder returns. Within the third quarter of 2022, the corporate returned roughly $1.7 billion of worth to its shareholders via roughly $1.0 billion in share repurchases and the cost of $638 million of dividends. The corporate additionally diminished internet debt by roughly $1.8 billion within the third quarter of 2022, excluding the influence of a $723 million unrealized overseas trade loss on the revaluation of U.S. greenback denominated debt. Web debt was $14.584 billion as on the finish of the third quarter, reflecting the achievement of the corporate’s 2025 focused internet debt vary of $12 billion to $15 billion. As at September 30, 2022, for the reason that starting of the 12 months, the corporate has diminished internet debt by roughly $2.5 billion, excluding the influence of a $929 million unrealized overseas trade loss on the revaluation of U.S. greenback denominated debt. The corporate stays on monitor with its beforehand articulated capital allocation framework, and relying on the enterprise surroundings, expects to extend its share buyback allocation to 75% by the tip of the primary quarter of 2023.

Subsequent to the third quarter of 2022, the corporate executed a debt tender supply and, because of this, repaid roughly $3.6 billion of its varied notes under par. This important structural long-term debt discount, which was executed throughout opportunistic market circumstances, advances the corporate’s debt discount and annual capital allocation targets, and is anticipated to scale back long-term financing prices and supply ongoing steadiness sheet flexibility.

As at October 31, 2022, for the reason that begin of the 12 months, the corporate has repurchased roughly $4.6 billion of its frequent shares, representing roughly 104.7 million frequent shares, or the equal of seven.3% of its frequent shares as at December 31, 2021.

“We’re allocating extra funds in accordance with our capital allocation framework, returning worth to our shareholders via shareholder returns of $1.7 billion within the third quarter, and strengthening our steadiness sheet,” mentioned Smith. “The current execution of the debt tender supply, throughout opportunistic market circumstances, and our resolution to considerably upsize the supply to $3.6 billion demonstrates confidence in our enterprise and our dedication to lowering internet debt.”

The corporate continues to advance plenty of strategic initiatives which might be anticipated to contribute to its incremental free funds stream goal via elevated income and reductions in working prices, capital expenditures and reclamation spending. The corporate expects to realize an extra roughly $400 million of incremental free funds stream by the tip of 2022, constructing on the incremental $465 million achieved in 2021, via the implementation of digital, course of and know-how initiatives. The working price portion of the financial savings generated from these enchancment initiatives helps to offset inflationary pressures and elevated mining prices within the firm’s Oil Sands enterprise. The corporate continues to progress in direction of realizing $100 million of annual gross synergies for the Syncrude three way partnership homeowners in 2022, with an extra $200 million of annual gross synergies anticipated to be realized via 2023-2024.

In E&P Canada, funding within the Terra Nova Floating, Manufacturing, Storage and Offloading facility associated to the Asset Life Extension Undertaking is ongoing and the asset is anticipated to sail again to Canada later within the fourth quarter of 2022, for a protected return to manufacturing in early 2023.

Decreasing greenhouse fuel emissions is a key part of the corporate’s enterprise technique and long-term imaginative and prescient. In assist of Suncor’s ambition to be net-zero by 2050, the corporate has continued to work collaboratively with business friends via the Pathways Alliance and in addition with Federal and Provincial governments. Important progress has been achieved to progress the Alliance’s foundational carbon seize undertaking, which is a necessary a part of the trail to net-zero.

Company Steering

Suncor has up to date its full-year enterprise surroundings outlook assumptions for Brent Sullom Voe from US$101.00/bbl to US$103.00/bbl, WTI at Cushing from US$97.00/bbl to US$95.00/bbl, WCS at Hardisty from US$80.00/bbl to US$77.00/bbl, New York Harbor 2-1-1 crack from US$41.50/bbl to US$48.00/bbl, AECO-C Spot from $5.90/GJ to $5.00/GJ and the Cdn$/US$ trade price from 0.78 to 0.77 because of modifications in key ahead curve pricing for the rest of the 12 months.

The corporate has additionally up to date its full-year U.Okay. statutory tax price vary from 37% – 42% to 47% – 52% as a result of enactment of the UK Vitality Income Levy within the third quarter of 2022.

For additional particulars and advisories relating to Suncor’s 2022 company steering, see www.suncor.com/steering.

Non-GAAP Monetary Measures

Sure monetary measures on this information launch – particularly adjusted funds from operations, adjusted working earnings, internet debt, last-in, first-out (LIFO) stock valuation methodology and free funds stream and associated per share or per barrel quantities – should not prescribed by GAAP. These non-GAAP monetary measures are included as a result of administration makes use of the knowledge to investigate enterprise efficiency, leverage and liquidity, as relevant, and it could be helpful to traders on the identical foundation. These non-GAAP monetary measures should not have any standardized that means and, due to this fact, are unlikely to be corresponding to comparable measures offered by different corporations. Due to this fact, these non-GAAP monetary measures shouldn’t be thought-about in isolation or as an alternative choice to measures of efficiency ready in accordance with GAAP. Besides as in any other case indicated, these non-GAAP monetary measures are calculated and disclosed on a constant foundation from interval to interval. Particular adjusting gadgets might solely be related in sure durations.

Starting within the fourth quarter of 2021, the corporate modified the label of working earnings (loss) and funds from (utilized in) operations to adjusted working earnings (loss) and adjusted funds from (utilized in) operations, respectively, to higher distinguish the non-GAAP monetary measures from the comparable GAAP measures and higher mirror the aim of the measures. The composition of the measures stays unchanged and due to this fact no prior durations had been restated.

Adjusted Working Earnings

Adjusted working earnings is a non-GAAP monetary measure that adjusts internet earnings for important gadgets that aren’t indicative of working efficiency. Administration makes use of adjusted working earnings to guage working efficiency as a result of administration believes it supplies higher comparability between durations. Adjusted working earnings is reconciled to internet earnings within the information launch above.

Starting within the first quarter of 2022, to align with how administration evaluates section efficiency, the corporate revised its section presentation to mirror section outcomes earlier than revenue tax expense and current tax at a consolidated stage. This presentation change has no impact on consolidated adjusted working earnings. Comparative durations have been restated to mirror this modification.

Adjusted Funds From (Used In) Operations

Adjusted funds from (utilized in) operations is a non-GAAP monetary measure that adjusts a GAAP measure – money stream supplied by working actions – for modifications in non-cash working capital, which administration makes use of to investigate working efficiency and liquidity. Adjustments to non-cash working capital will be impacted by, amongst different components, commodity value volatility, the timing of offshore feedstock purchases and funds for commodity and revenue taxes, the timing of money flows associated to accounts receivable and accounts payable, and modifications in stock, which administration believes reduces comparability between durations.

(1) Starting within the first quarter of 2022, to align with how administration evaluates section efficiency, the corporate revised its section presentation to mirror section outcomes earlier than revenue tax expense and current tax at a consolidated stage. This presentation change has no impact on consolidated adjusted funds from (utilized in) operations. Comparative durations have been restated to mirror this modification.

(1) Starting within the first quarter of 2022, to align with how administration evaluates section efficiency, the corporate revised its section presentation to mirror section outcomes earlier than revenue tax expense and current tax at a consolidated stage. This presentation change has no impact on consolidated adjusted funds from (utilized in) operations. Comparative durations have been restated to mirror this modification. See the Revenue Tax part of this MD&A for a dialogue on revenue taxes.

Web Debt and Complete Debt

Web debt and complete debt are non-GAAP monetary measures that administration makes use of to investigate the monetary situation of the corporate. Complete debt contains short-term debt, present portion of long-term debt, present portion of long-term lease liabilities, long-term debt and long-term lease liabilities (all of that are GAAP measures). Web debt is the same as complete debt much less money and money equivalents (a GAAP measure).

Free Funds Circulate

Free funds stream is a non-GAAP monetary measure that’s calculated by taking adjusted funds from operations and subtracting capital expenditures, together with capitalized curiosity. Free funds stream displays money obtainable for rising distributions to shareholders and lowering debt. Administration makes use of free funds stream to measure the capability of the corporate to extend returns to shareholders and to develop Suncor’s enterprise.

(1) Excludes capital expenditures associated to belongings held on the market of $38 million within the third quarter of 2022 and $93 million within the first 9 months of 2022.

Affect of First in, First out (FIFO) Stock Valuation on Refining and Advertising Web Earnings (Loss)

GAAP requires the usage of a FIFO stock valuation methodology. For Suncor, this leads to a disconnect between the gross sales costs for refined merchandise, which mirror present market circumstances, and the quantity recorded as the price of sale for the associated refinery feedstock, which displays market circumstances on the time the feedstock was bought. This lag between buy and sale will be anyplace from a number of weeks to a number of months, and is influenced by the point to obtain crude after buy (which will be a number of weeks for overseas offshore crude purchases), regional crude stock ranges, the completion of refining processes, transportation time to distribution channels and regional refined product stock ranges.

Suncor prepares and presents an estimate of the influence of utilizing a FIFO stock valuation methodology in comparison with a LIFO methodology, as a result of administration makes use of the knowledge to investigate working efficiency and evaluate itself towards refining friends which might be permitted to make use of LIFO stock valuation underneath United States GAAP (U.S. GAAP).

The corporate’s estimate will not be derived from a standardized calculation and, due to this fact, will not be instantly corresponding to comparable measures offered by different corporations, and shouldn’t be thought-about in isolation or as an alternative choice to measures of efficiency ready in accordance with GAAP or U.S. GAAP.

Authorized Advisory – Ahead-Wanting Data
This information launch accommodates sure forward-looking info and forward-looking statements (collectively referred to herein as “forward-looking statements”) inside the that means of relevant Canadian and U.S. securities legal guidelines. Ahead-looking statements and different info are based mostly on Suncor’s present expectations, estimates, projections and assumptions that had been made by the corporate in gentle of data obtainable on the time the assertion was made and take into account Suncor’s expertise and its notion of historic traits, together with expectations and assumptions regarding: the accuracy of reserves estimates; the present and potential antagonistic impacts of the COVID-19 pandemic, together with the standing of the pandemic and future waves and any related insurance policies round present enterprise restrictions, shelter-in-place orders or gatherings of people; commodity costs and curiosity and overseas trade charges; the efficiency of belongings and tools; uncertainty associated to geopolitical battle; capital efficiencies and value financial savings; relevant legal guidelines and authorities insurance policies; future manufacturing charges; the sufficiency of budgeted capital expenditures in finishing up deliberate actions; the supply and value of labour, providers and infrastructure; the satisfaction by third events of their obligations to Suncor; the event and execution of tasks; and the receipt, in a well timed method, of regulatory and third-party approvals. All statements and data that handle expectations or projections in regards to the future, and different statements and details about Suncor’s technique for development, anticipated and future expenditures or funding selections, commodity costs, prices, schedules, manufacturing volumes, working and monetary outcomes, future financing and capital actions, and the anticipated influence of future commitments are forward-looking statements. A few of the forward-looking statements could also be recognized by phrases like “expects”, “anticipates”, “will”, “estimates”, “plans”, “scheduled”, “intends”, “believes”, “tasks”, “signifies”, “might”, “focus”, “imaginative and prescient”, “purpose”, “outlook”, “proposed”, “goal”, “goal”, “proceed”, “ought to”, “might”, “future”, “potential”, “alternative”, “would”, “precedence”, “technique” and comparable expressions. Ahead-looking statements on this information launch embody references to: statements relating to Suncor’s settlement to amass Teck’s 21.3% working curiosity in Fort Hills, together with the anticipated advantages therefrom, the timing of closing and Suncor’s perception that it’s a strategic match with its concentrate on core belongings and underscores its confidence within the long-term worth of the Fort Hills undertaking; statements relating to Fort Hills, together with these associated to anticipated volumes; statements about Suncor’s 2025 focused internet debt vary of $12 billion to $15 billion, the corporate’s expectation that it stays on monitor with its beforehand articulated capital allocation framework and that the corporate will improve its share buyback allocation to 75% by the tip of the primary quarter of 2023; Suncor’s dedication to enhancing its security and operational efficiency and the steps it should take to take action with the intention to obtain its operational excellence priorities and Suncor’s goal to additional develop its profitability by specializing in the corporate’s capital investments on high-value money stream initiatives that assist its incremental free funds stream targets whereas persevering with to regulate and streamline its portfolio to optimize its base enterprise; Suncor’s expectation that the sale of its wind and photo voltaic belongings will shut within the first quarter of 2023 and the anticipated gross proceeds therefrom and statements relating to the potential sale of Suncor’s U.Okay. E&P portfolio, together with the expectation that it’s going to shut inside the subsequent twelve months; statements relating to Suncor’s strategic evaluate of its downstream retail enterprise, together with the objectives, course of and anticipated timing for the evaluate to be accomplished; statements about Suncor’s incremental free funds stream goal, together with with respect to the strategic initiatives which might be anticipated to contribute to the goal and the corporate’s expectation that it’s going to obtain an extra $400 million of incremental free funds stream in 2022, primarily pushed by the implementation of digital, course of and know-how initiatives; Suncor’s perception that the Norway asset sale, the sale of its wind and photo voltaic belongings and the U.Okay. E&P portfolio will allow a sharpened concentrate on Suncor’s core enterprise; expectations relating to Suncor’s operatorship of the Syncrude asset, together with that the Suncor is continuous to progress in direction of realizing $100 million of annual gross synergies for the Syncrude three way partnership homeowners in 2022, with an extra $200 million of annual gross synergies anticipated to be realized via 2023-2024; Suncor’s expectation that it’s going to stay dedicated to its capital allocation framework, its plan to speed up its capital allocation plan and allocate incremental free funds stream in accordance therewith, with extra funds being allotted in direction of debt compensation and share buybacks based mostly on internet debt ranges and the anticipated timing that it’s going to attain such internet debt ranges; statements in regards to the Terra Nova Floating, Manufacturing, Storage and Offloading facility and the Asset Life Extension Undertaking, together with that the asset is on monitor to sail again to Canada later within the fourth quarter of 2022 for a protected return to manufacturing in early 2023; statements relating to Suncor’s ambition to be internet zero by 2050 and its perception that the Pathways Alliance’s carbon seize undertaking might be a necessary a part of the trail to internet zero; Suncor’s full-year outlook vary on full-year U.Okay. statutory tax price and the Cdn$/US$ trade price in addition to enterprise surroundings outlook assumptions for Brent Sullom Voe, WTI at Cushing, WCS at Hardisty, New York Harbor 2-1-1 crack and AECO-C Spot. As well as, all different statements and details about Suncor’s technique for development, anticipated and future expenditures or funding selections, commodity costs, prices, schedules, manufacturing volumes, working and monetary outcomes and the anticipated influence of future commitments are forward-looking statements. A few of the forward-looking statements and data could also be recognized by phrases like “expects”, “anticipates”, “will”, “estimates”, “plans”, “scheduled”, “intends”, “believes”, “tasks”, “signifies”, “might”, “focus”, “imaginative and prescient”, “purpose”, “outlook”, “proposed”, “goal”, “goal”, “proceed”, “ought to”, “might” and comparable expressions.

Ahead-looking statements are based mostly on Suncor’s present expectations, estimates, projections and assumptions that had been made by the corporate in gentle of its info obtainable on the time the assertion was made and take into account Suncor’s expertise and its notion of historic traits, together with expectations and assumptions regarding: the accuracy of reserves estimates; the present and potential antagonistic impacts of the COVID-19 pandemic, together with the standing of the pandemic and future waves and any related insurance policies round present enterprise restrictions, shelter-in-place orders or gatherings of people; commodity costs and curiosity and overseas trade charges; the efficiency of belongings and tools; capital efficiencies and value financial savings; relevant legal guidelines and authorities insurance policies; future manufacturing charges; the sufficiency of budgeted capital expenditures in finishing up deliberate actions; the supply and value of labour, providers and infrastructure; the satisfaction by third events of their obligations to Suncor; the event and execution of tasks; and the receipt, in a well timed method, of regulatory and third-party approvals.

Ahead-looking statements and data should not ensures of future efficiency and contain plenty of dangers and uncertainties, some which might be much like different oil and fuel corporations and a few which might be distinctive to Suncor. Suncor’s precise outcomes might differ materially from these expressed or implied by its forward-looking statements, so readers are cautioned to not place undue reliance on them.

Suncor’s Annual Data Type and Annual Report back to Shareholders, every dated February 23, 2022, Type 40-F dated February 24, 2022, Suncor’s Report back to Shareholders for the Third Quarter of 2022 dated November 2, 2022 (the MD&A), and different paperwork it information sometimes with securities regulatory authorities describe the dangers, uncertainties, materials assumptions and different components that would affect precise outcomes and such components are included herein by reference. Copies of those paperwork can be found with out cost from Suncor at 150 sixth Avenue S.W., Calgary, Alberta T2P 3E3; by electronic mail request to make investments@suncor.com; by calling 1-800-558-9071; or by referring to suncor.com/FinancialReports or to the corporate’s profile on SEDAR at sedar.com or EDGAR at sec.gov. Besides as required by relevant securities legal guidelines, Suncor disclaims any intention or obligation to publicly replace or revise any forward-looking statements, whether or not because of new info, future occasions or in any other case.

Authorized Advisory – BOEs

Sure pure fuel volumes have been transformed to barrels of oil equal (boe) on the premise of 1 barrel to 6 thousand cubic ft. Any determine offered in boe could also be deceptive, notably if utilized in isolation. A conversion ratio of 1 bbl of crude oil or pure fuel liquids to 6 thousand cubic ft of pure fuel is predicated on an vitality equivalency conversion methodology primarily relevant on the burner tip and doesn’t symbolize a price equivalency on the wellhead. On condition that the worth ratio based mostly on the present value of crude oil as in comparison with pure fuel is considerably completely different from the vitality equivalency of 6:1, using a conversion on a 6:1 foundation could also be deceptive as a sign of worth.

To view a full copy of Suncor’s third quarter 2022 Report back to Shareholders and the monetary statements and notes (unaudited), go to Suncor’s profile on sedar.com or sec.gov or go to Suncor’s web site at suncor.com/financialreports.

To hearken to the convention name discussing Suncor’s third quarter outcomes, go to suncor.com/webcasts.

Suncor Vitality is Canada’s main built-in vitality firm. Suncor’s operations embody oil sands growth, manufacturing and upgrading; offshore oil and fuel; petroleum refining in Canada and the U.S.; and the corporate’s Petro-Canada retail and wholesale distribution networks (together with Canada’s Electrical Freeway™, a coast-to-coast community of fast-charging electrical automobile stations). Suncor is creating petroleum sources whereas advancing the transition to a low-emissions future via funding in energy, renewable fuels and hydrogen. Suncor additionally conducts vitality buying and selling actions targeted principally on the advertising and buying and selling of crude oil, pure fuel, byproducts, refined merchandise and energy. Suncor has been acknowledged for its efficiency and clear reporting on the Dow Jones Sustainability index, FTSE4Good and CDP. Suncor can also be listed on the UN World Compact 100 inventory index. Suncor’s frequent shares (image: SU) are listed on the Toronto Inventory Change and the New York Inventory Change.

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For extra details about Suncor, go to our web page at suncor.com or observe us on Twitter @Suncor

Media inquiries:
833-296-4570
media@suncor.com

Investor inquiries:
800-558-9071
make investments@suncor.com