Suncor Energy provides fourth quarter 2018 operations update
January 07 2019 - 6:30AM
Suncor today provided an operations update for the fourth quarter
of 2018, highlighting total upstream production of 831,000 barrels
of oil equivalent per day (boe/d), which is a quarterly production
record and represents an increase of 12% from the third quarter of
2018. This record-breaking quarter reflects the results of
the significant investment developing Fort Hills, and Suncor’s
ongoing operational excellence focus across its assets,
particularly at the Syncrude joint venture.
Oil sands operations produced approximately 433,000 barrels per
day (bbls/d) in the quarter. Fort Hills produced 183,000
bbls/d for the quarter, approximately 100,000 bbls/d net to Suncor,
representing 94% of nameplate capacity. Syncrude production
was 355,000 bbls/d for the quarter, 209,000 bbls/d net to Suncor,
representing 101% of nameplate capacity, and reflecting a new
quarterly production record. Total production from
Exploration & Production was 90,000 boe/d during the fourth
quarter.
Refining and Marketing operations demonstrated solid reliability
with average refinery utilization of 101% for record quarterly
crude throughput of 468,000 bbls/d. Refined product demand remained
strong during the quarter.
“Fort Hills successfully completed its production ramp up ahead
of schedule with production exceeding our guidance of 90%
utilization for the quarter,” said Steve Williams, chief executive
officer. “During the quarter we had strong operational
performance across our mining and in situ assets with Syncrude
producing at record volumes and solid performance from Oil Sands
operations, reflecting our focus on safety and operational
excellence. Our integrated strategy and continued focus on
value-added businesses has positioned us to perform well through
volatile market conditions.”
In December 2018, the Government of Alberta announced an overall
production curtailment program, effectively imposing production
caps for 2019. Suncor continues to work with the Government
of Alberta and the Alberta Energy Regulator to manage and mitigate
the unintended consequences of the curtailment orders on Suncor’s
business. At this time there is no change in Suncor’s
production guidance as previously issued on Dec. 14, 2018, which
included Suncor’s estimate of the impact of this evolving
curtailment program on its business.
Suncor’s fourth quarter results will be issued Feb. 5, 2019.
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 in
this news release include references to: Suncor’s ongoing
operational excellence focus across its assets; that Suncor’s
integrated strategy and continued focus on value-added businesses
has positioned the company to perform well through volatile market
conditions; Suncor continuing to work with the Government of
Alberta and the Alberta Energy Regulator to manage and mitigate the
unintended consequences of the curtailment orders on Suncor’s
business; that at this time there is no change in Suncor’s
production guidance as previously issued on Dec. 14, 2018, which
included Suncor’s estimate of the impact of the evolving
curtailment program on its business; and Suncor’s fourth quarter
results release date. Some of the forward-looking statements may be
identified by words like “focus”, “strategy”, “guidance”,
“estimate”, “will” and similar expressions.
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; the performance of assets and equipment; capital
efficiencies and cost-savings; applicable laws and government
policies; future production rates; the sufficiency of budgeted
capital expenditures in carrying out planned activities; the
availability and cost of labour, services and infrastructure; the
satisfaction by third parties of their obligations to Suncor; the
execution of projects; and the receipt, in a timely manner, of
regulatory and third-party approvals.
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 differ materially
from those expressed or implied by its forward-looking statements,
so readers are cautioned not to place undue reliance on them.
Suncor’s Management’s Discussion and Analysis dated Oct. 31,
2018, Suncor’s most recently filed Annual Information Form, Form
40-F and Annual Report to Shareholders and other documents Suncor
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 email request to invest@suncor.com; by
calling 1-800-558-9071; or by referring to
suncor.com/FinancialReports or 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 (bbl) 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,
offshore oil and gas production, petroleum refining, and product
marketing under the Petro-Canada brand. A member of Dow Jones
Sustainability indexes, FTSE4Good and CDP, Suncor is working to
responsibly develop petroleum resources while also growing a
renewable energy portfolio. Suncor is listed on the UN Global
Compact 100 stock index. Suncor's common shares (symbol: SU) are
listed on the Toronto and New York stock exchanges.
For more information about Suncor, visit our web site at
suncor.com, follow us on Twitter @Suncor or together.suncor.com
Media inquiries:403-296-4000media@suncor.com
Investor inquiries:800-558-9071invest@suncor.com
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