Suncor Energy Announces 2023 Production Outlook and Capital Program

Source Company Press Release
Company Suncor Energy Inc.
Tags Corporate: Guidance, Overview/Strategy, Country: Canada, Norway, United States, Downstream: Refining, Financial - Costs & Metrics: Capital Expenditures, Oil Sands Project: Firebag, Fort Hills (Mining), MacKay River, Suncor Base Mine, Suncor Upgrader, Syncrude (Mining), Syncrude (Upgrading), Segment: Oilsands News, Shale/Tight News, Upstream: Drilling Activity, Upstream News
Date November 29, 2022

Suncor Energy (TSX: SU) (NYSE: SU) released its 2023 corporate guidance today.

"Over the past several months, our new mining leadership has done an in-depth review of our assets and developed a multi-year plan that will deliver marked improvements in safety, reliability and operational performance," said Kris Smith interim president and chief executive officer. "In addition, we will continue to optimize our assets to drive value and future growth in areas that are complementary to our base business."

Members of the Suncor leadership team will discuss this outlook later today at the Company's previously scheduled Investor Presentation beginning at 11 a.m. MT / 1 p.m. ET. A webcast of the event will be available at

  2023 Full Year Outlook
November 29, 2022 
Suncor Total Production (boe/d) (1)  740,000  770,000 
Oil Sands Operations (bbls/d) (2)  385,000  425,000 
Synthetic Crude Oil (bbls/d)  290,000  310,000 
Bitumen (bbls/d)  95,000  115,000 
Fort Hills (bbls/d) Suncor working interest of 75.41% (3)  90,000  100,000 
Syncrude (bbls/d) Suncor working interest of 58.74%  175,000  190,000 
Exploration and Production (boe/d) (4)  65,000  75,000 
Suncor Refinery Throughput (bbls/d)  430,000  445,000 
Suncor Refinery Utilization (5)  92%  96% 
Refined Product Sales (bbls/d)  550,000  580,000 

1) Production ranges for Oil Sands operations, Fort Hills, Syncrude and Exploration and Production are not intended to add to equal Suncor Total Production.

2) Oil Sands operations production includes synthetic crude oil, diesel, and bitumen and excludes Fort Hills PFT bitumen and Syncrude synthetic crude oil production. These ranges reflect the integrated upgrading and bitumen production performance risk.

3) Fort Hills production assumes Suncor's incremental 21.3% share of Fort Hills production acquired from Teck Resources Limited is effective April 1, 2023.

4) Exploration and Production volumes assume UK divestiture takes place effective June 30, 2023.

5) Refinery utilization is based on the following crude processing capacities: Montreal - 137,000 bbls/d; Sarnia - 85,000 bbls/d; Edmonton - 146,000 bbls/d; and Commerce City - 98,000 bbls/d.

Capital Expenditures (6) 
(C$ millions)  2023 Full Year Outlook
November 29, 2022 
% Economic
Investment (8) 
Upstream Oil Sands (7)  3,625  3,875  30% 
Upstream E&P  725  775  100% 
Total Upstream  4,350  4,650  45% 
Downstream  1,025  1,100  25% 
Corporate  25  50  45% 
Total  5,400  5,800  40% 

6) Capital expenditures exclude capitalized interest of approximately $180 million.

7) Upstream Oil Sands capital expenditure includes approximately $100 million for Suncor's incremental 21.3% share of Fort Hills acquired from Teck Resources Limited, which is assumed to close on April 1, 2023.

8) Balance of capital expenditures represents Asset Sustainment and Maintenance capital expenditures. For definitions of Economic Investment and Asset Sustainment and Maintenance capital expenditures, see the Capital Investment Update section of Suncor's Management's Discussion and Analysis for the Third Quarter of 2022 dated November 2, 2022 (the "MD&A"), available at www.

Suncor's corporate guidance provides management's outlook for 2023 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.

Suncor's capital spending program will be approximately $5.4 to 5.8 billion and expectations of where that spending will be directed; Suncor's expectations around production, including planned average upstream production of 740,000 - 770,000 boe/d and planned ranges for Oil Sands operations (385,000 - 425,000 bbls/d), made up of Synthetic Crude Oil (290,000 - 310,000 bbls/d) and Bitumen (95,000 - 115,000 bbls/d), Suncor's working interest in Fort Hills (90,000 - 100,000 bbls/d), Suncor's working interest in Syncrude (175,000 - 190,000 bbls/d) and Exploration & Production (65,000 - 75,000 boe/d); Suncor's expected Oil Sands operations cash operating costs, projected to be in the range of $30.00 - $33.00 (US $22.80 - $25.10) per barrel; expected Fort Hills cash operating costs, projected to be in the range of $33.00 - $36.00 (US $25.10- $27.40) per barrel; expected  Syncrude cash operating costs, projected to be in the range of $39.00 - $43.00 (US $29.60 - $32.70) per barrel; Suncor's expected Refinery Throughputs (430,000 - 445,000 bbls/d) and Utilization (92% - 96%); Suncor's expected Refined Product Sales (550,000 - 580,000 bbls/d); the expected impacts of planned maintenance, including the major planned maintenance turnaround at both Base Plant U2 and at Fort Hills.

Source: EvaluateEnergy® ©2024 EvaluateEnergy Ltd