Suncor’s 2017 Report on Sustainability contains certain forward-looking statements and forward-looking information (collectively, “forward-looking statements”) within the meaning of applicable Canadian and U.S. securities laws. Forward-looking statements in Suncor’s 2017 Report on Sustainability include references to: Suncor’s mission, vision and strategies, including to strive to be the low-cost competitor in its sector without compromising environmental performance, deliver long term value for shareholders, unlock the full value of its resources, deliver triple bottom line sustainability in environmental performance, social responsibility and creating a strong economy, keep costs down, and increase reliability; Suncor’s goal to decrease overall greenhouse gas (“GHG”) emissions intensity of its production of oil and petroleum products by 30% by 2030, the social goal relating to increasing the participation of Aboriginal Peoples in energy development and strengthening Suncor’s relationships with Aboriginal Peoples of Canada, and Suncor’s intention to create a long-term goal relating to water conservation; the expected impact of achieving these goals; the expectation that technology will keep Suncor competitive and allow Suncor to grow its business; expectations regarding the sale of a combined 49% interest in the East Tank Farm development to Fort McKay First Nation and Mikisew Cree First Nation; the focus of Suncor’s Exploration and Production business, Suncor’s expectations (including potential outcomes and benefits) and plans around technologies being developed, tested, introduced in Suncor’s operations or considered for use, including technologies related to decarbonization, in situ technologies, including the next generation SAGD platform, remote monitoring, control and support, solvent and surfactant assisted SAGD recovery, radio frequency heating techniques, electromagnetically assisted solvent extraction, non-condensable gas co-injection, direct contact steam generation and produced water treatment, CO2 capture, surface mining technologies, including paraffinic froth treatment, less aqueous extraction, froth treatment tails, autonomous haulage systems and permanent aquatic storage, land reclamation, wireless badges, wireless gas detection monitors, flaring and tailings management; timelines and plans relating to technology development and testing; the expectation that technology will result in oil sands crudes being both a low cost and low carbon source of crude; the projection that Suncor’s oil sands mining projects will produce a reliable, long-term energy supply while leveraging technology to minimize environmental and social impacts; Suncor’s aim to bend the curve on the company’s absolute GHG emissions; expectations for the Energy Management System; potential replacement of petroleum coke fired boilers and benefits thereof; potential benefits of investment in cogeneration; possible initiatives that could be undertaken to achieve Suncor’s sustainability goals; Suncor’s strategy to be an industry leader in sustainable development by continued performance improvements in air emissions, water withdrawals, land reclamation and energy efficiency; Suncor’s plan to remain resilient in a world transitioning to a lower carbon energy system; the goal to achieve a competitive rate of return over the life of Suncor’s assets; the expectation that even under a scenario that represents a rapid shift away from liquid fuels, none of Suncor’s existing assets are at risk of being stranded and the company is positioned to continue to deliver strong shareholder value; the belief that a substantial amount of oil will be required for decades; the view that diesel demand will remain strong; Suncor’s goal to continue to reduce costs and carbon intensity; the expectation that first oil from the Fort Hills project will be achieved in the fourth quarter of 2017; the expectation that the Fort Hills project will have a nameplate capacity of 194,000 barrels per day of bitumen and that this will add over 3 million tonnes of CO2e to Suncor’s operated GHG emission profile; expectations for tailings management at Fort Hills; potential future wind and solar power projects in Alberta and Saskatchewan; expectations for renewable power development; Suncor’s carbon price outlook and the estimated impact thereof; expected impacts of changing regulations; expectations for the Water Technology Development Centre and the timeline for opening it; expectations for future water use; expectations for Suncor’s wastewater plant; land reclamation goals; tailings management plans; future project spending; Suncor’s aim to deliver competitive and sustainable returns to shareholders by focusing on capital discipline, operational excellence, long-term profitable growth and leveraging Suncor’s competitive differentiators; Suncor’s 2017 capital spending plan; Suncor striving to profitably operate and develop its oil sands resources, optimize value through integration, achieve industry-leading unit costs in each business segment and be an industry leader in sustainable development; Suncor’s enterprise-wide value driving goals; the expectation that first oil from the Hebron project will be achieved in late 2017; the expectation that future growth projects will be staged to preserve invested capital; the expectation that the East Tank Farm development will support market access for Fort Hills bitumen; workforce expectations and plans; personal and process safety initiatives; and estimates of future absolute GHG emissions and emissions intensity. Some of the forward-looking statements and information may be identified by words like ‘‘expected’’, ‘‘anticipated’’, ‘‘will’’, ‘‘estimates’’, ‘‘plan’’, ‘‘scheduled’’, ‘‘intended’’, ‘‘believes’’, ‘‘projected’’, ‘‘indicates’’, ‘‘could’’, ‘‘focus’’, ‘‘vision’’, “mission”, strategy”, ‘‘goal’’, ‘‘outlook’’, ‘‘proposed’’, ‘‘target’’, ‘‘objective’’, ‘‘continue’’, ‘‘should’’, ‘‘may’’, ‘‘aim’’, “strives”, “would”, “potential”, “committed”, “opportunity” 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 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, including 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; the satisfaction by third parties of their obligations to Suncor; 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.
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; 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 (including forest 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 technology and infrastructure 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, including climate change 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; risks associated with land claims and Aboriginal consultation requirements; risks relating to litigation; 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 exhaustive.
Suncor's Management's Discussion and Analysis for the first quarter of 2017 dated April 26, 2017 and its Annual Information Form, Form 40-F and Annual Report to Shareholders, each dated March 1, 2017, 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 email@example.com 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.
Certain financial measures in Suncor’s 2017 Report on Sustainability – namely funds from operations, operating earnings (loss), Oil Sands operations cash operating costs per barrel and discretionary free cash flow – are not prescribed by Canadian generally accepted accounting principles (“GAAP”). These non-GAAP measures are defined and reconciled in Suncor’s Management’s Discussion and Analysis for the year ended December 31, 2016.
These non-GAAP financial measures do not have any standardized meaning and therefore are unlikely to be comparable to similar measures presented by other companies. These non-GAAP financial measures are included because management uses the information to analyze business performance, leverage and liquidity, and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP.
Reclamation at Suncor is a carefully monitored process with two distinct components: (i) transformation of the area, including tailings ponds, into a solid material that can support vegetation, wildlife and landscape restoration, which includes landform design and soil placement; and (ii) re-vegetation in a way that the reclaimed landscape can support vegetation and wildlife as a self-sustaining ecosystem. When Suncor claims that it has reclaimed land or plans to reclaim land, the reclaimed land will have met or is intended to meet the two distinct components identified in this paragraph.
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 barrel 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 necessarily 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.
Cubic metres of oil equivalent and are calculated on the basis of one boe to 0.159 standard cubic metres. As cubic metres of oil equivalent are based on a conversion involving boe, all values are subject to the same limitations as boe, noted above.
References to “Suncor”, “we”, “our” and “the company” in Suncor’s 2017 Report on Sustainability mean Suncor Energy Inc., its subsidiaries, partnerships and interests in associates and jointly controlled entities, unless the context otherwise requires.
The use of “partnership” throughout Suncor’s 2017 Report on Sustainability does not necessarily mean a partnership in the legal context.