| Consolidated Statements of Comprehensive Income (Loss)(unaudited) |
| Three months ended |
| | March 31 |
| ($ millions) | | | 2021 | 2020 |
| Revenues and Other Income |
| ....................................................................................................................................................................................................................................................... |
| Operating revenues, net of royalties (note 3) | | | 8 679 | 7 391 |
| ....................................................................................................................................................................................................................................................... |
| Other (loss) income (note 4) | (43) | 365 |
| | | 8 636 | 7 756 |
| Expenses |
| ....................................................................................................................................................................................................................................................... |
| Purchases of crude oil and products | | | 2 583 | 3 180 |
| ....................................................................................................................................................................................................................................................... |
| Operating, selling and general(1) | | | 2 900 | 2 936 |
| ....................................................................................................................................................................................................................................................... |
| Transportation and distribution(1) | | | 381 | 367 |
| ....................................................................................................................................................................................................................................................... |
| Depreciation, depletion, amortization and impairment (note 10) | | | 1 490 | 4 146 |
| ....................................................................................................................................................................................................................................................... |
| Exploration | 8 | 139 |
| ....................................................................................................................................................................................................................................................... |
| Gain on disposal of assets | (8) | | | (4) |
| ....................................................................................................................................................................................................................................................... |
| Financing expenses (note 6) | | | 168 | 1 342 |
| | | 7 522 | 12 106 |
| Earnings (Loss) before Income Taxes | | | 1 114 | (4 350) |
| Income Tax Expense (Recovery) |
| ....................................................................................................................................................................................................................................................... |
| Current | | | 284 | (305) |
| ....................................................................................................................................................................................................................................................... |
| Deferred | 9 | (520) |
| | | 293 | (825) |
| Net Earnings (Loss) | | | 821 | (3 525) |
| Other Comprehensive Income |
| ....................................................................................................................................................................................................................................................... |
| Items That May be Subsequently Reclassified to Earnings: |
| ....................................................................................................................................................................................................................................................... |
| | | | | Foreign currency translation adjustment | (41) | 241 |
| ....................................................................................................................................................................................................................................................... |
| Items That Will Not be Reclassified to Earnings: |
| ....................................................................................................................................................................................................................................................... |
| | | | | Actuarial gain on employee retirement benefit plans, net of income taxes (note 12) | 656 | 13 |
| Other Comprehensive Income | | | 615 | 254 |
| Total Comprehensive Income (Loss) | | | 1 436 | (3 271) |
| Per Common Share (dollars) (note 7) |
| ....................................................................................................................................................................................................................................................... |
| Net earnings (loss) – basic and diluted | | | 0.54 | (2.31) |
| ....................................................................................................................................................................................................................................................... |
| Cash dividends | | | 0.21 | 0.47 |
| (1) | Prior period amounts have been reclassified to align with the current year presentation of the transportation and distribution expense. For thethree months ended March 31, 2020, $31 million was reclassified from operating, selling and general expense to transportation and distributionexpense. This reclassification had no effect on net earnings (loss). |
| See accompanying notes to the condensed interim consolidated financial statements. |
| 44 2021 First Quarter Suncor Energy Inc. |
| Consolidated Balance Sheets(unaudited) |
| March 31 | December 31 |
| ($ millions) | 2021 | | 2020 |
| Assets |
| ....................................................................................................................................................................................................................................................... |
| Current assets |
| ....................................................................................................................................................................................................................................................... |
| | | | Cash and cash equivalents | 1 762 | | 1 885 |
| ....................................................................................................................................................................................................................................................... |
| | | | Accounts receivable | 3 669 | | 3 157 |
| ....................................................................................................................................................................................................................................................... |
| | | | Inventories | 3 911 | | 3 617 |
| ....................................................................................................................................................................................................................................................... |
| | | | Income taxes receivable | 539 | | 727 |
| Total current assets | 9 881 | | 9 386 |
| ....................................................................................................................................................................................................................................................... |
| Property, plant and equipment, net (note 10) | 66 252 | 68 130 |
| ....................................................................................................................................................................................................................................................... |
| Exploration and evaluation | 2 225 | | 2 286 |
| ....................................................................................................................................................................................................................................................... |
| Other assets | 1 237 | | 1 277 |
| ....................................................................................................................................................................................................................................................... |
| Goodwill and other intangible assets | 3 398 | | 3 328 |
| ....................................................................................................................................................................................................................................................... |
| Deferred income taxes | 183 | | 209 |
| Total assets | 83 176 | 84 616 |
| Liabilities and Shareholders’ Equity |
| ....................................................................................................................................................................................................................................................... |
| Current liabilities |
| ....................................................................................................................................................................................................................................................... |
| | | | Short-term debt | 2 258 | | 3 566 |
| ....................................................................................................................................................................................................................................................... |
| | | | Current portion of long-term debt (note 6) | 377 | | 1 413 |
| ....................................................................................................................................................................................................................................................... |
| | | | Current portion of long-term lease liabilities | 298 | | 272 |
| ....................................................................................................................................................................................................................................................... |
| | | | Accounts payable and accrued liabilities | 5 542 | | 4 684 |
| ....................................................................................................................................................................................................................................................... |
| | | | Current portion of provisions | 562 | | 527 |
| ....................................................................................................................................................................................................................................................... |
| | | | Income taxes payable | 30 | 87 |
| Total current liabilities | 9 067 | 10 549 |
| ....................................................................................................................................................................................................................................................... |
| Long-term debt (note 6) | 15 078 | 13 812 |
| ....................................................................................................................................................................................................................................................... |
| Long-term lease liabilities | 2 580 | | 2 636 |
| ....................................................................................................................................................................................................................................................... |
| Other long-term liabilities (note 12) | 2 124 | | 2 840 |
| ....................................................................................................................................................................................................................................................... |
| Provisions (note 11) | 8 849 | 10 055 |
| ....................................................................................................................................................................................................................................................... |
| Deferred income taxes | 9 153 | | 8 967 |
| ....................................................................................................................................................................................................................................................... |
| Equity | 36 325 | 35 757 |
| Total liabilities and shareholders’ equity | 83 176 | 84 616 |
| See accompanying notes to the condensed interim consolidated financial statements. |
| | | | | | 2021 First Quarter Suncor Energy Inc. 45 |
| Consolidated Statements of Cash Flows(unaudited) |
| Three months ended |
| | March 31 |
| ($ millions) | 2021 | 2020 |
| Operating Activities |
| ....................................................................................................................................................................................................................................................... |
| Net Earnings (Loss) | 821 | (3 525) |
| ....................................................................................................................................................................................................................................................... |
| Adjustments for: |
| ....................................................................................................................................................................................................................................................... |
| Depreciation, depletion, amortization and impairment (note 10) | 1 490 | 4 146 |
| ....................................................................................................................................................................................................................................................... |
| Deferred income tax expense (recovery) | 9 | (520) |
| ....................................................................................................................................................................................................................................................... |
| Accretion (note 6) | 74 | 69 |
| ....................................................................................................................................................................................................................................................... |
| Unrealized foreign exchange (gain) loss on U.S. dollar denominated debt (note 6) | (196) | 1 096 |
| ....................................................................................................................................................................................................................................................... |
| Change in fair value of financial instruments and trading inventory | (103) | 125 |
| ....................................................................................................................................................................................................................................................... |
| Gain on disposal of assets | (8) | | (4) |
| ....................................................................................................................................................................................................................................................... |
| Share-based compensation | (2) | (326) |
| ....................................................................................................................................................................................................................................................... |
| Exploration— | 70 |
| ....................................................................................................................................................................................................................................................... |
| Settlement of decommissioning and restoration liabilities | (70) | (106) |
| ....................................................................................................................................................................................................................................................... |
| Other | 95 | (24) |
| ....................................................................................................................................................................................................................................................... |
| Decrease in non-cash working capital | 235 | 383 |
| Cash flow provided by operating activities | 2 345 | 1 384 |
| Investing Activities |
| ....................................................................................................................................................................................................................................................... |
| Capital and exploration expenditures | (803) | (1 320) |
| ....................................................................................................................................................................................................................................................... |
| Proceeds from disposal of assets | 8 | | — |
| ....................................................................................................................................................................................................................................................... |
| Other investments | (7) | (16) |
| ....................................................................................................................................................................................................................................................... |
| Increase in non-cash working capital | (34) | (180) |
| Cash flow used in investing activities | (836) | (1 516) |
| Financing Activities |
| ....................................................................................................................................................................................................................................................... |
| Net (decrease) increase in short-term debt | (1 271) | 1 386 |
| ....................................................................................................................................................................................................................................................... |
| Repayment of long-term debt (note 6) | (1 050) | | — |
| ....................................................................................................................................................................................................................................................... |
| Issuance of long-term debt (note 6) | 1 423 | | — |
| ....................................................................................................................................................................................................................................................... |
| Lease liability payments | (88) | (82) |
| ....................................................................................................................................................................................................................................................... |
| Issuance of common shares under share option plans | — | 29 |
| ....................................................................................................................................................................................................................................................... |
| Repurchase of common shares (note 8) | (318) | (307) |
| ....................................................................................................................................................................................................................................................... |
| Distributions relating to non-controlling interest | (2) | | (2) |
| ....................................................................................................................................................................................................................................................... |
| Dividends paid on common shares | (319) | (709) |
| Cash flow (used in) provided by financing activities | (1 625) | 315 |
| (Decrease) Increase in Cash and Cash Equivalents | (116) | 183 |
| ....................................................................................................................................................................................................................................................... |
| Effect of foreign exchange on cash and cash equivalents | (7) | 83 |
| ....................................................................................................................................................................................................................................................... |
| Cash and cash equivalents at beginning of period | 1 885 | 1 960 |
| Cash and Cash Equivalents at End of Period | 1 762 | 2 226 |
| Supplementary Cash Flow Information |
| ....................................................................................................................................................................................................................................................... |
| Interest paid | 139 | 147 |
| ....................................................................................................................................................................................................................................................... |
| Income taxes paid | 148 | 751 |
| See accompanying notes to the condensed interim consolidated financial statements. |
| 46 2021 First Quarter Suncor Energy Inc. |
| Consolidated Statements of Changes in Equity(unaudited) |
| Accumulated | Number of |
| | | Other | Common |
| | | | Share | Contributed | Comprehensive | | | | | Retained | Shares |
| ($ millions) | | | | Capital | Surplus | Income | | | | | Earnings | Total | (thousands) |
| At December 31, 2019 | | | | 25 167 | | | | 566 | 899 | | | 15 410 | 42 042 | 1 531 874 |
| Net loss | | | | — | | | | — | — | | | (3 525) | (3 525) | | — |
| .......................................................................................................................................................................................................................... | | ......................... |
| Foreign currency translation adjustment | | | | — | | | | — | 241 | | | — | 241 | | — |
| .......................................................................................................................................................................................................................... | | ......................... |
| Actuarial gain on employee retirementbenefit plans, net of income taxes of $5 |
| | | | — | | | | — | — | | | 13 | 13 | | — |
| Total comprehensive income (loss) | | | | — | | | | — | 241 | | | (3 512) | (3 271) | | — |
| .......................................................................................................................................................................................................................... | | ......................... |
| Issued under share option plans | | | | 36 | | | | (7) | — | | | — | 29 | 804 |
| .......................................................................................................................................................................................................................... | | ......................... |
| Repurchase of common shares forcancellation (note 8) |
| | | | (124) | | | | — | — | | | (183) | (307) | (7 527) |
| .......................................................................................................................................................................................................................... | | ......................... |
| Change in liability for share repurchasecommitment |
| | | | 65 | | | | — | — | | | 103 | 168 | | — |
| .......................................................................................................................................................................................................................... | | ......................... |
| Share-based compensation | | | | — | | | | 13 | — | | | — | 13 | | — |
| .......................................................................................................................................................................................................................... | | ......................... |
| Dividends paid on common shares | | | | — | | | | — | — | | | (709) | (709) | | — |
| At March 31, 2020 | | | | 25 144 | | | | 572 | 1 140 | | | | | 11 109 | 37 965 | 1 525 151 |
| At December 31, 2020 | | | | 25 144 | | | | 591 | 877 | | | 9 145 | 35 757 | 1 525 151 |
| Net earnings | | | | — | | | | — | — | | | 821 | 821 | | — |
| .......................................................................................................................................................................................................................... | | ......................... |
| Foreign currency translation adjustment | | | | — | | | | — | (41) | | | — | (41) | | — |
| .......................................................................................................................................................................................................................... | | ......................... |
| Actuarial gain on employee retirementbenefit plans, net of income taxes of $207(note 12) |
| | | | — | | | | — | — | | | 656 | 656 | | — |
| Total comprehensive (loss) income | | | | — | | | | — | (41) | | | 1 477 | 1 436 | | — |
| .......................................................................................................................................................................................................................... | | ......................... |
| Repurchase of common shares forcancellation (note 8) |
| | | | (199) | | | | — | — | | | (119) | (318) | (12 055) |
| .......................................................................................................................................................................................................................... | | ......................... |
| Change in liability for share repurchasecommitment |
| | | | (151) | | | | — | — | | | (89) | (240) | | — |
| .......................................................................................................................................................................................................................... | | ......................... |
| Share-based compensation | | | | — | | | | 9 | — | | | — | 9 | | — |
| .......................................................................................................................................................................................................................... | | ......................... |
| Dividends paid on common shares | | | | — | | | | — | — | | | (319) | (319) | | — |
| At March 31, 2021 | | | | 24 794 | | | | 600 | 836 | | | 10 095 | 36 325 | 1 513 096 |
| See accompanying notes to the condensed interim consolidated financial statements. |
| | | | | | 2021 First Quarter Suncor Energy Inc. 47 |
| Notes to the Consolidated Financial Statements(unaudited) |
| 1. Reporting Entity and Description of the Business |
| Suncor Energy Inc. (Suncor or the company) is an integrated energy company headquartered in Calgary, Alberta. The company is |
| focused on developing one of the world’s largest petroleum resource basins – Canada’s Athabasca oil sands. In addition, the |
| company explores for, acquires, develops, produces and markets crude oil in Canada and internationally; transports and refines |
| crude oil; and markets petroleum and petrochemical products primarily in Canada. The company also operates a renewable energy |
| business and conducts energy trading activities focused principally on the marketing and trading of crude oil, natural gas, |
| byproducts, refined products and power. |
| The address of the company’s registered office is 150 – 6th Avenue S.W., Calgary, Alberta, Canada, T2P 3E3. |
| 2. Basis of Preparation |
| (a) Statement of Compliance |
| These condensed interim consolidated financial statements have been prepared in accordance with International Financial Reporting |
| Standards, specifically International Accounting Standard 34 Interim Financial Reporting as issued by the International Accounting |
| Standards Board. They are condensed as they do not include all of the information required for full annual financial statements, and |
| they should be read in conjunction with the consolidated financial statements of the company for the year ended December 31, |
| 2020. Beginning in the first quarter of 2021, the company has revised the presentation of its expenses from ‘‘transportation’’ to |
| ‘‘transportation and distribution’’ and reclassified certain operating, selling and general expenses to transportation and distribution to |
| better reflect the nature of these expenses. There is no impact to net earnings (loss) and comparative periods have been restated to |
| reflect this change. |
| (b) Basis of Measurement |
| The consolidated financial statements are prepared on a historical cost basis except as detailed in the accounting policies disclosed |
| in the company’s consolidated financial statements for the year ended December 31, 2020. |
| (c) Functional Currency and Presentation Currency |
| These consolidated financial statements are presented in Canadian dollars, which is the company’s functional currency. |
| (d) Use of Estimates, Assumptions and Judgments |
| The timely preparation of financial statements requires that management make estimates and assumptions and use judgment. |
| Accordingly, actual results may differ from estimated amounts as future confirming events occur. Significant estimates and judgment |
| used in the preparation of the financial statements are described in the company’s consolidated financial statements for the year |
| ended December 31, 2020. |
| On January 30, 2020, the World Health Organization declared the COVID-19 outbreak a Public Health Emergency of International |
| Concern and, on March 10, 2020, declared it to be a pandemic. Actions taken around the world to help mitigate the spread of |
| COVID-19 include restrictions on travel, quarantines in certain areas, and forced closures for certain types of public places and |
| businesses. These measures have and may continue to have significant disruption to business operations and a significant increase |
| in economic uncertainty, with reduced demand for commodities leading to volatile prices and currency exchange rates, and a decline |
| in long-term interest rates. Our operations and business are particularly sensitive to a reduction in the demand for, and prices of, |
| commodities that are closely linked to Suncor’s financial performance, including crude oil, refined petroleum products (such as jet |
| fuel and gasoline), natural gas and electricity. The potential direct and indirect impacts of the economic downturn have been |
| considered in management’s estimates, and assumptions at period end have been reflected in our results with any significant |
| changes described in the relevant notes to the company’s unaudited interim Consolidated Financial Statements for the three months |
| ended March 31, 2021. |
| The COVID-19 pandemic is an evolving situation that will continue to have widespread implications for our business environment, |
| operations and financial condition. Management cannot reasonably estimate the length or severity of this pandemic, or the extent to |
| which the disruption may materially impact our consolidated statements of comprehensive income (loss), consolidated balance |
| sheets and consolidated statements of cash flows in fiscal 2021. |
| 48 2021 First Quarter Suncor Energy Inc. |
| (e) Income Taxes |
| The company recognizes the impacts of income tax rate changes in earnings in the period that the applicable rate change is |
| enacted or substantively enacted. |
| 3. Segmented Information |
| The company’s operating segments are reported based on the nature of their products and services and management responsibility. |
| Intersegment sales of crude oil and natural gas are accounted for at market values and are included, for segmented reporting, in |
| revenues of the segment making the transfer and expenses of the segment receiving the transfer. Intersegment amounts are |
| eliminated on consolidation. |
| Three months ended | Exploration | Refining and | Corporate and |
| March 31 | | | | Oil Sands | and Production | Marketing | Eliminations | | Total |
| ($ millions) | | | | 2021 | | 2020 | 2021 | | | | | | 2020 | 2021 | | | | | | 2020 | 2021 | | | | | | 2020 | 2021 | 2020 |
| Revenues and Other Income |
| ....................................................................................................................................................................................................................................................... |
| Gross revenues | | | | 3 295 | 2 327 | 590 | | | | | | 539 | 4 990 | | | | | | 4 563 | 6 | | | | | | 9 | 8 881 | 7 438 |
| ....................................................................................................................................................................................................................................................... |
| Intersegment revenues | | | | 1 056 | | 990 | — | | | | | | — | 23 | | | | | | 24 | (1 079) (1 014) | | — | | | | | | — |
| ....................................................................................................................................................................................................................................................... |
| Less: Royalties | | | | (158) | | (25) | (44) | | | | | | (22) | — | | | | | | — | — | | | | | | — | (202) | | | | | | (47) |
| Operating revenues, net of royalties | | | | 4 193 | 3 292 | 546 | | | | | | 517 | 5 013 | | | | | | 4 587 | (1 073) (1 005) | | | | | | | 8 679 | 7 391 |
| ....................................................................................................................................................................................................................................................... |
| Other (loss) income | | | | (2) | | 248 | (1) | | | | | | 33 | (45) | | | | | | 86 | 5 | | | | | | (2) | (43) | 365 |
| | | | 4 191 | 3 540 | 545 | | | | | | 550 | 4 968 | | | | | | 4 673 | (1 068) (1 007) | | | | | | | 8 636 | 7 756 |
| Expenses |
| ....................................................................................................................................................................................................................................................... |
| Purchases of crude oil andproducts |
| | | | 250 | | 407 | — | | | | | | — | 3 275 | | | | | | 3 958 | (942) (1 185) | | | | | | | 2 583 | 3 180 |
| ....................................................................................................................................................................................................................................................... |
| Operating, selling and general(1) | | | | 1 973 | 2 252 | 110 | | | | | | 133 | 479 | | | | | | 480 | 338 | | | | | | 71 | 2 900 | 2 936 |
| ....................................................................................................................................................................................................................................................... |
| Transportation and distribution(1) | | | | 276 | | 289 | 52 | | | | | | 23 | 63 | | | | | | 67 | (10) | | | | | | (12) | 381 | 367 |
| ....................................................................................................................................................................................................................................................... |
| Depreciation, depletion,amortization and impairment |
| | | | 1 158 | 3 065 | 102 | | | | | | 828 | 209 | | | | | | 232 | 21 | | | | | | 21 | 1 490 | 4 146 |
| ....................................................................................................................................................................................................................................................... |
| Exploration | | | | 2 | | 57 | 6 | | | | | | 82 | — | | | | | | — | — | | | | | | — | 8 | 139 |
| ....................................................................................................................................................................................................................................................... |
| Gain on disposal of assets | | | | — | | (1) | — | | | | | | — | (8) | | | | | | (3) | — | | | | | | — | (8) | | | | | | (4) |
| ....................................................................................................................................................................................................................................................... |
| Financing expenses | | | | 87 | | 81 | 17 | | | | | | 3 | 16 | | | | | | — | 48 | | | | | | 1 258 | 168 | 1 342 |
| | | | 3 746 | 6 150 | 287 | | | | | | 1 069 | 4 034 | | | | | | 4 734 | (545) | | | | | | 153 | 7 522 | 12 106 |
| Earnings (Loss) before IncomeTaxes |
| | | | 445 | (2 610) | 258 | | | | | | (519) | 934 | | | | | | (61) | (523) (1 160) | | | | | | | 1 114 | (4 350) |
| ....................................................................................................................................................................................................................................................... |
| Income Tax Expense (Recovery) |
| ....................................................................................................................................................................................................................................................... |
| Current | | | | 127 | | (213) | 80 | | | | | | 36 | 210 | | | | | | 4 | (133) | | | | | | (132) | 284 | (305) |
| ....................................................................................................................................................................................................................................................... |
| Deferred | | | | (8) | | (444) | 15 | | | | | | (128) | 17 | | | | | | (10) | (15) | | | | | | 62 | 9 | (520) |
| | | | 119 | | (657) | 95 | | | | | | (92) | 227 | | | | | | (6) | (148) | | | | | | (70) | 293 | (825) |
| Net Earnings (Loss) | | | | 326 | (1 953) | 163 | | | | | | (427) | 707 | | | | | | (55) | (375) (1 090) | | 821 | (3 525) |
| Capital and ExplorationExpenditures |
| | | | 539 | 1 010 | 69 | | | | | | 179 | 120 | | | | | | 92 | 75 | | | | | | 39 | 803 | 1 320 |
| (1) | Prior period amounts of the Refining and Marketing segment have been reclassified to align with the current year presentation of thetransportation and distribution expense. For the three months ended March 31, 2020, $31 million was reclassified from operating, selling andgeneral expense to transportation and distribution expense. This reclassification had no effect on net earnings (loss). |
| | | | | | | | 2021 First Quarter Suncor Energy Inc. 49 |
| Notes to the Consolidated Financial Statements |
| Disaggregation of Revenue from Contracts with Customers and Intersegment Revenue |
| The company derives revenue from the transfer of goods mainly at a point in time in the following major commodities, revenue |
| streams and geographical regions: |
| Three months ended March 31 | 2021 | 2020 |
| ($ millions) | | | North America | International | | | Total | North America | International | | | | Total |
| Oil Sands |
| ....................................................................................................................................................................................................................................................... |
| Synthetic crude oil and diesel | | | | | | | 3 347 | — | 3 347 | | | | | 2 779 | — | 2 779 |
| ....................................................................................................................................................................................................................................................... |
| Bitumen | | | | | | | 1 004 | — | 1 004 | | | | | 538 | — | 538 |
| | | | | | | 4 351 | — | 4 351 | | | | | 3 317 | — | 3 317 |
| Exploration and Production |
| ....................................................................................................................................................................................................................................................... |
| Crude oil and natural gas liquids | | | | | | | 386 | 202 | 588 | | | | | 319 | 219 | 538 |
| ....................................................................................................................................................................................................................................................... |
| Natural gas | | | | | | | — | 2 | 2 | | | | | — | 1 | 1 |
| | | | | | | 386 | 204 | 590 | | | | | 319 | 220 | 539 |
| Refining and Marketing |
| ....................................................................................................................................................................................................................................................... |
| Gasoline | | | | | | | 2 051 | — | 2 051 | | | | | 1 894 | — | 1 894 |
| ....................................................................................................................................................................................................................................................... |
| Distillate | | | | | | | 2 287 | — | 2 287 | | | | | 2 116 | — | 2 116 |
| ....................................................................................................................................................................................................................................................... |
| Other | | | | | | | 675 | — | 675 | | | | | 577 | — | 577 |
| | | | | | | 5 013 | — | 5 013 | | | | | 4 587 | — | 4 587 |
| Corporate and Eliminations |
| | | | | | | (1 073) | — | (1 073) | | | | | (1 005) | — | (1 005) |
| Total Revenue from Contracts withCustomers |
| | | | | | | 8 677 | 204 | 8 881 | | | | | 7 218 | 220 | 7 438 |
| 4. Other (Loss) Income |
| Other (loss) income consists of the following: |
| | Three months ended |
| | | | | | March 31 |
| ($ millions) | | 2021 | | | | 2020 |
| Energy trading activities |
| ....................................................................................................................................................................................................................................................... |
| Gains recognized in earnings | | 11 | | | | 236 |
| ....................................................................................................................................................................................................................................................... |
| Losses on inventory valuation | | (21) | | | | (97) |
| ....................................................................................................................................................................................................................................................... |
| Short-term commodity risk management | | (66) | | | | 185 |
| ....................................................................................................................................................................................................................................................... |
| Investment and interest income | | 23 | | | | 36 |
| ....................................................................................................................................................................................................................................................... |
| Other | | 10 | | | | 5 |
| | (43) | | | | 365 |
| 50 2021 First Quarter Suncor Energy Inc. |
| 5. Share-Based Compensation |
| The following table summarizes the share-based compensation expense (recovery) for all plans recorded within operating, selling |
| and general expense: |
| Three months ended |
| | March 31 |
| ($ millions) | 2021 | 2020 |
| Equity-settled plans | 9 | 13 |
| ....................................................................................................................................................................................................................................................... |
| Cash-settled plans | 102 | (100) |
| 111 | (87) |
| 6. Financing Expenses |
| Three months ended |
| | March 31 |
| ($ millions) | 2021 | 2020 |
| Interest on debt | 210 | 216 |
| ....................................................................................................................................................................................................................................................... |
| Interest on lease liabilities | 41 | 42 |
| ....................................................................................................................................................................................................................................................... |
| Capitalized interest | (31) | (38) |
| Interest expense | 220 | 220 |
| ....................................................................................................................................................................................................................................................... |
| Interest on partnership liability | 13 | 13 |
| ....................................................................................................................................................................................................................................................... |
| Interest on pension and other post-retirement benefits | 15 | 14 |
| ....................................................................................................................................................................................................................................................... |
| Accretion | 74 | 69 |
| ....................................................................................................................................................................................................................................................... |
| Foreign exchange (gain) loss on U.S. dollar denominated debt | (196) | 1 096 |
| ....................................................................................................................................................................................................................................................... |
| Operational foreign exchange and other | 42 | (70) |
| 168 | 1 342 |
| On March 4, 2021, the company issued US$750 million of senior unsecured notes maturing on March 4, 2051. The notes have a |
| coupon of 3.75% and were priced at US$99.518 per US$100 principal amount for an effective yield of 3.777%. The company also |
| issued $500 million of senior unsecured Series 8 medium-term notes on March 4, 2021, maturing on March 4, 2051. The notes have |
| a coupon of 3.95% and were priced at $98.546 per $100 principal amount for an effective yield of 4.034%. Interest on the 3.75% |
| and 3.95% notes is paid semi-annually. |
| During the first quarter of 2021, the company completed an early redemption of its $750 million senior unsecured Series 5 |
| medium-term notes with a coupon of 3.10% originally scheduled to mature on November 26, 2021, for $770 million, including |
| $8 million of accrued interest, resulting in a debt extinguishment loss of $12 million ($9 million after-tax). |
| The company also completed an early redemption of its US$220 million (book value of $278 million) senior unsecured notes with a |
| coupon of 9.40% originally scheduled to mature on September 1, 2021, for US$230 million ($290 million), including US$2 million |
| ($2 million) of accrued interest, resulting in a debt extinguishment loss of $10 million ($8 million after-tax). |
| Effective March 5, 2021, the company terminated $2.8 billion of bilateral credit facilities as these credit facilities were no longer |
| required. The terminated credit facilities had a two-year term and were entered into in March and April of 2020 to ensure access to |
| adequate financial resources in connection with the COVID-19 pandemic should they have been required. |
| | | 2021 First Quarter Suncor Energy Inc. 51 |
| Notes to the Consolidated Financial Statements |
| 7. Earnings (Loss) per Common Share |
| Three months ended |
| | March 31 |
| ($ millions) | 2021 | 2020 |
| Net earnings (loss) | 821 | (3 525) |
| (millions of common shares) |
| Weighted average number of common shares | 1 522 | 1 528 |
| ....................................................................................................................................................................................................................................................... |
| Dilutive securities: |
| ....................................................................................................................................................................................................................................................... |
| Effect of share options | — | | 1 |
| Weighted average number of diluted common shares | 1 522 | 1 529 |
| (dollars per common share) |
| Basic and diluted earnings (loss) per share | 0.54 | (2.31) |
| 8. Normal Course Issuer Bid |
| During the first quarter of 2021, the company announced its intention to commence a new Normal Course Issuer Bid (the 2021 |
| NCIB) to repurchase shares through the facilities of the Toronto Stock Exchange, New York Stock Exchange and/or alternative |
| trading platforms. Pursuant to the 2021 NCIB, the company may repurchase for cancellation up to 44,000,000 common shares |
| between February 8, 2021, and February 7, 2022. During the first quarter of 2021, the company repurchased 12.1 million common |
| shares under the 2021 NCIB at an average price of $26.36 per share, for a total repurchase cost of $318 million. |
| The following table summarizes the share repurchase activities during the period: |
| Three months ended |
| | March 31 |
| ($ millions, except as noted) | 2021 | 2020 |
| Share repurchase activities (thousands of common shares) |
| ....................................................................................................................................................................................................................................................... |
| Shares repurchased | | | | 12 055 | 7 527 |
| Amounts charged to: |
| ....................................................................................................................................................................................................................................................... |
| Share capital | 199 | 124 |
| ....................................................................................................................................................................................................................................................... |
| Retained earnings | 119 | 183 |
| Share repurchase cost | 318 | 307 |
| Under an automatic repurchase plan agreement with an independent broker, the company has recorded the following liability for |
| share repurchases that may take place during its internal blackout period: |
| | | | March 31 | December 31 |
| ($ millions) | 2021 | 2020 |
| Amounts charged to: |
| ....................................................................................................................................................................................................................................................... |
| Share capital | 151 | | — |
| ....................................................................................................................................................................................................................................................... |
| Retained earnings | 89 | | — |
| Liability for share purchase commitment | 240 | | — |
| 52 2021 First Quarter Suncor Energy Inc. |
| 9. Financial Instruments |
| Derivative Financial Instruments |
| (a) Non-Designated Derivative Financial Instruments |
| The company uses derivative financial instruments, such as physical and financial contracts, to manage certain exposures to |
| fluctuations in interest rates, short-term commodity prices and foreign currency exchange rates, as part of its overall risk |
| management program, as well as for trading purposes. |
| The changes in the fair value of non-designated derivatives are as follows: |
| ($ millions) | Total |
| Fair value outstanding at December 31, 2020 | (121) |
| ....................................................................................................................................................................................................................................................... |
| Cash settlements – paid during the year | 180 |
| ....................................................................................................................................................................................................................................................... |
| Changes in fair value recognized in earnings during the year | (55) |
| Fair value outstanding at March 31, 2021 | 4 |
| (b) Fair Value Hierarchy |
| To estimate the fair value of derivatives, the company uses quoted market prices when available, or third-party models and valuation |
| methodologies that utilize observable market data. In addition to market information, the company incorporates transaction-specific |
| details that market participants would utilize in a fair value measurement, including the impact of non-performance risk. However, |
| these fair value estimates may not necessarily be indicative of the amounts that could be realized or settled in a current market |
| transaction. The company characterizes inputs used in determining fair value using a hierarchy that prioritizes inputs depending on |
| the degree to which they are observable. The three levels of the fair value hierarchy are as follows: |
| • | Level 1 consists of instruments with a fair value determined by an unadjusted quoted price in an active market for identical |
| assets or liabilities. An active market is characterized by readily and regularly available quoted prices where the prices are |
| representative of actual and regularly occurring market transactions to assure liquidity. |
| • | Level 2 consists of instruments with a fair value that is determined by quoted prices in an inactive market, prices with |
| observable inputs or prices with insignificant non-observable inputs. The fair value of these positions is determined using |
| observable inputs from exchanges, pricing services, third-party independent broker quotes and published transportation tolls. |
| The observable inputs may be adjusted using certain methods, which include extrapolation over the quoted price term and |
| quotes for comparable assets and liabilities. |
| • | Level 3 consists of instruments with a fair value that is determined by prices with significant unobservable inputs. As at |
| March 31, 2021, the company does not have any derivative instruments measured at fair value Level 3. |
| In forming estimates, the company utilizes the most observable inputs available for valuation purposes. If a fair value measurement |
| reflects inputs of different levels within the hierarchy, the measurement is categorized based upon the lowest level of input that is |
| significant to the fair value measurement. |
| The following table presents the company’s derivative financial instruments measured at fair value for each hierarchy level as at |
| March 31, 2021: |
| Total Fair |
| ($ millions) | | Level 1 | Level 2 | Level 3 | Value |
| Accounts receivable | | 81 | 56 | — | 137 |
| ....................................................................................................................................................................................................................................................... |
| Accounts payable | | (78) | (55) | — | (133) |
| | 3 | 1 | — | 4 |
| During the first quarter of 2021, there were no transfers between Level 1 and Level 2 fair value measurements. |
| A substantial portion of the company’s accounts receivable are with customers in the oil and gas industry and are subject to normal |
| industry credit risk. While the industry has experienced credit downgrades due to the COVID-19 pandemic, Suncor has not been |
| significantly affected as the majority of Suncor’s customers are large and established downstream companies with investment grade |
| credit ratings. |
| | | 2021 First Quarter Suncor Energy Inc. 53 |
| Notes to the Consolidated Financial Statements |
| Non-Derivative Financial Instruments |
| At March 31, 2021, the carrying value of fixed-term debt accounted for under amortized cost was $15.5 billion (December 31, 2020 – |
| $15.2 billion) and the fair value was $18.3 billion (December 31, 2020 – $18.8 billion). The estimated fair value of long-term debt is |
| based on pricing sourced from market data. |
| 10. Asset Impairment |
| Oil Sands |
| During the first quarter of 2020, the company recorded an impairment of $1.38 billion (net of taxes of $0.44 billion) on its share of |
| the Fort Hills assets in the Oil Sands segment. No indicators of impairment or reversals of impairment were identified at |
| March 31, 2021. |
| Exploration and Production |
| White Rose assets: |
| During the first quarter of 2020, the company recorded an impairment of $137 million (net of taxes of $45 million) on its share of the |
| White Rose assets in the Exploration and Production segment. |
| In the fourth quarter of 2020, the company reassessed the likelihood of completing the West White Rose Project. As a result of this |
| reassessment, the company performed another impairment test of the White Rose cash-generating unit (CGU). An after-tax |
| impairment charge of $423 million (net of taxes of $136 million) was recognized and the White Rose CGU was fully impaired at |
| December 31, 2020. |
| No indicators of impairment reversal were identified at March 31, 2021. |
| Terra Nova assets: |
| During the first quarter of 2020, the company recorded an impairment of $285 million (net of taxes of $93 million) on its share of the |
| Terra Nova assets in the Exploration and Production segment. |
| No indicators of impairment or reversals of impairment were identified at March 31, 2021. |
| 11. Provisions |
| Suncor’s decommissioning and restoration provision decreased by $1.2 billion for the three months ended March 31, 2021. The |
| decrease was primarily due to an increase in the credit-adjusted risk-free interest rate to 3.70% (December 31, 2020 – 3.10%). |
| 12. Pensions and Other Post-Retirement Benefits |
| For the three months ended March 31, 2021, the actuarial gain on employee retirement benefit plans was $656 million (net of taxes |
| of $207 million) mainly due to an increase in the discount rate to 3.30% (December 31, 2020 – 2.50%). |
| 54 2021 First Quarter Suncor Energy Inc. |
| Supplemental Financial and Operating InformationQuarterly Financial Summary(unaudited) |
| Twelve |
| months |
| | Three months ended | ended |
| | | Mar 31 | Dec 31 | | Sep 30 | Jun 30 | Mar 31 | Dec 31 |
| ($ millions, except per share amounts) | | | 2021 | 2020 | | 2020 | 2020 | 2020 | 2020 |
| Revenues, net of royalties, and other income | | | 8 636 | 6 594 | | 6 457 | 4 245 | 7 756 | 25 052 |
| Net earnings (loss) |
| ....................................................................................................................................................................................................................................................... |
| Oil Sands | | | 326 | (293) | | (531) | (1 019) | (1 953) | (3 796) |
| ....................................................................................................................................................................................................................................................... |
| Exploration and Production | | | 163 | (379) | | 25 | (51) | (427) | (832) |
| ....................................................................................................................................................................................................................................................... |
| Refining and Marketing | | | 707 | 268 | | 384 | 269 | (55) | 866 |
| ....................................................................................................................................................................................................................................................... |
| Corporate and Eliminations | | | (375) | 236 | | 110 | 187 | (1 090) | (557) |
| Total | | | 821 | (168) | | (12) | (614) | (3 525) | (4 319) |
| Operating earnings (loss)(A)(B) |
| ....................................................................................................................................................................................................................................................... |
| Oil Sands | | | 299 | (130) | | (539) | (1 148) | (448) | (2 265) |
| ....................................................................................................................................................................................................................................................... |
| Exploration and Production | | | 163 | 44 | | 25 | (51) | (5) | 13 |
| ....................................................................................................................................................................................................................................................... |
| Refining and Marketing | | | 714 | 280 | | 356 | 145 | 101 | 882 |
| ....................................................................................................................................................................................................................................................... |
| Corporate and Eliminations | | | (430) | (303) | | (180) | (291) | (69) | (843) |
| Total | | | 746 | (109) | | (338) | (1 345) | (421) | (2 213) |
| Funds from (used in) operations(A) |
| ....................................................................................................................................................................................................................................................... |
| Oil Sands | | | 1 400 | 729 | | 556 | 10 | 691 | 1 986 |
| ....................................................................................................................................................................................................................................................... |
| Exploration and Production | | | 285 | 312 | | 260 | 309 | 173 | 1 054 |
| ....................................................................................................................................................................................................................................................... |
| Refining and Marketing | | | 962 | 415 | | 594 | 475 | 224 | 1 708 |
| ....................................................................................................................................................................................................................................................... |
| Corporate and Eliminations | | | (537) | (235) | | (244) | (306) | (87) | (872) |
| Total | | | 2 110 | 1 221 | | 1 166 | 488 | 1 001 | 3 876 |
| Change in non-cash working capital | | | 235 | (407) | | 79 | (1 256) | 383 | (1 201) |
| Cash flow provided by (used in) operating activities | | | 2 345 | 814 | | 1 245 | (768) | 1 384 | 2 675 |
| Per common share |
| ....................................................................................................................................................................................................................................................... |
| Net earnings (loss) – basic | | | 0.54 | (0.11) | | (0.01) | (0.40) | (2.31) | (2.83) |
| ....................................................................................................................................................................................................................................................... |
| Operating earnings (loss) – basic(A)(B) | | | 0.49 | (0.07) | | (0.22) | (0.88) | (0.28) | (1.45) |
| ....................................................................................................................................................................................................................................................... |
| Cash dividends – basic | | | 0.21 | 0.21 | | 0.21 | 0.21 | 0.47 | 1.10 |
| ....................................................................................................................................................................................................................................................... |
| Funds from operations – basic(A) | | | 1.39 | 0.80 | | 0.76 | 0.32 | 0.66 | 2.54 |
| ....................................................................................................................................................................................................................................................... |
| Cash flow provided by (used in) operating activities – basic | | | 1.54 | 0.53 | | 0.82 | (0.50) | 0.91 | 1.75 |
| Capital and exploration expenditures (including capitalized interest) |
| ....................................................................................................................................................................................................................................................... |
| Oil Sands | | | 539 | 628 | | 661 | 437 | 1 010 | 2 736 |
| ....................................................................................................................................................................................................................................................... |
| Exploration and Production | | | 69 | 80 | | 99 | 131 | 179 | 489 |
| ....................................................................................................................................................................................................................................................... |
| Refining and Marketing | | | 120 | 181 | | 156 | 86 | 92 | 515 |
| ....................................................................................................................................................................................................................................................... |
| Corporate and Eliminations | | | 75 | 78 | | 25 | 44 | 39 | 186 |
| Total capital and exploration expenditures | | | 803 | 967 | | 941 | 698 | 1 320 | 3 926 |
| | | | For the twelve months ended |
| | Mar 31 | | Dec 31 | Sep 30 | Jun 30 | Mar 31 |
| | 2021 | | 2020 | 2020 | 2020 | 2020 |
| Return on capital employed(A) (%) | | (1.4) | | (6.9) | (10.2) | (7.5) | (1.3) |
| ....................................................................................................................................................................................................................................................... |
| Return on capital employed – excluding impairments(A) (%) | | (0.6) | | (2.9) | (1.3) | 1.0 | 7.0 |
| (A) Non-GAAP financial measures. See the Operating Summary Information – Non-GAAP Financial Measures section of this Quarterly Report. |
| (B) Beginning in the first quarter of 2021, the company has revised its operating earnings non-GAAP financial measure to exclude unrealized (gains) |
| losses on derivative financial instruments that are recorded at fair value to better align the earnings impact of the activity with the underlyingitems being risk managed. Prior period comparatives have been restated to reflect this change. |
| See accompanying footnotes and definitions to the quarterly operating summaries. |
| | 2021 First Quarter Suncor Energy Inc. 55 |
| Quarterly Operating Summary(unaudited) |
| Twelve |
| months |
| | Three months ended | ended |
| | | Mar 31 | Dec 31 | | Sep 30 | Jun 30 | Mar 31 | Dec 31 |
| Oil Sands | | | 2021 | 2020 | | 2020 | 2020 | 2020 | 2020 |
| Production Volumes |
| Upgraded product (SCO and diesel) production (mbbls/d) |
| ....................................................................................................................................................................................................................................................... |
| Oil Sands operations | | | 329.6 | 309.7 | | 252.3 | 319.4 | 331.8 | 303.1 |
| ....................................................................................................................................................................................................................................................... |
| Syncrude | | | 190.3 | 204.6 | | 158.5 | 117.2 | 171.8 | 163.1 |
| Total upgraded production | | | 519.9 | 514.3 | | 410.8 | 436.6 | 503.6 | 466.2 |
| Non-upgraded bitumen production (mbbls/d) |
| ....................................................................................................................................................................................................................................................... |
| Oil Sands operations | | | 119.5 | 94.8 | | 65.6 | 69.8 | 45.8 | 69.1 |
| ....................................................................................................................................................................................................................................................... |
| Fort Hills | | | 51.2 | 62.4 | | 42.6 | 47.3 | 80.7 | 58.1 |
| Total Oil Sands non-upgraded bitumen production | | | 170.7 | 157.2 | | 108.2 | 117.1 | 126.5 | 127.2 |
| Total Oil Sands production volumes (mbbls/d) | | | 690.6 | 671.5 | | 519.0 | 553.7 | 630.1 | 593.4 |
| Oil Sands Sales Volumes (mbbls/d) |
| ....................................................................................................................................................................................................................................................... |
| Upgraded product (SCO and diesel) | | | 515.2 | 495.6 | | 420.1 | 443.1 | 512.5 | 467.9 |
| ....................................................................................................................................................................................................................................................... |
| Non-upgraded bitumen | | | 180.2 | 139.6 | | 119.1 | 116.4 | 127.5 | 125.6 |
| Total Oil Sands sales volumes | | | 695.4 | 635.2 | | 539.2 | 559.5 | 640.0 | 593.5 |
| Oil Sands operations cash operating costs – Average(1)(A) | | | | | | | ($/bbl)* |
| ....................................................................................................................................................................................................................................................... |
| Cash costs | | | 20.60 | 23.50 | | 28.85 | 23.55 | 27.15 | 25.60 |
| ....................................................................................................................................................................................................................................................... |
| Natural gas | | | 2.70 | 3.00 | | 2.90 | 2.25 | 2.30 | 2.60 |
| | | 23.30 | 26.50 | | 31.75 | 25.80 | 29.45 | 28.20 |
| Fort Hills bitumen cash operating costs(1)(A) | | | | | | | | ($/bbl)* |
| ....................................................................................................................................................................................................................................................... |
| Cash costs | | | 33.95 | 29.40 | | 33.05 | 33.40 | 29.40 | 30.90 |
| ....................................................................................................................................................................................................................................................... |
| Natural gas | | | 3.10 | 2.15 | | 2.15 | 1.95 | 1.60 | 1.90 |
| | | 37.05 | 31.55 | | 35.20 | 35.35 | 31.00 | 32.80 |
| Syncrude SCO cash operating costs(1)(A) | | | | | | | | ($/bbl)* |
| ....................................................................................................................................................................................................................................................... |
| Cash costs | | | 30.85 | 27.30 | | 33.30 | 36.70 | 35.30 | 32.55 |
| ....................................................................................................................................................................................................................................................... |
| Natural gas | | | 1.40 | 1.15 | | 1.05 | 1.65 | 1.35 | 1.25 |
| | | 32.25 | 28.45 | | 34.35 | 38.35 | 36.65 | 33.80 |
| (A) Non-GAAP financial measures. See the Quarterly Operating Metrics Reconciliation and the Operating Summary Information – Non-GAAP Financial |
| Measures section of this Quarterly Report. |
| See accompanying footnotes and definitions to the quarterly operating summaries. |
| 56 2021 First Quarter Suncor Energy Inc. |
| Quarterly Operating Summary (continued)(unaudited) |
| Twelve |
| months |
| | Three months ended | ended |
| | | Mar 31 | Dec 31 | | Sep 30 | Jun 30 | Mar 31 | Dec 31 |
| Oil Sands Segment Netbacks(A)(C) | | | 2021 | 2020 | | 2020 | 2020 | 2020 | 2020 |
| Bitumen ($/bbl) |
| ....................................................................................................................................................................................................................................................... |
| Average price realized | | | 47.57 | 34.06 | | 29.56 | 20.69 | 28.24 | 28.44 |
| ....................................................................................................................................................................................................................................................... |
| Royalties | | | (0.83) | (0.25) | | (0.36) | (0.21) | (0.44) | (0.32) |
| ....................................................................................................................................................................................................................................................... |
| Transportation and distribution costs | | | (5.04) | (5.16) | | (5.28) | (6.73) | (7.22) | (6.07) |
| ....................................................................................................................................................................................................................................................... |
| Net operating expenses | | | (13.88) | (19.84) | | (17.85) | (20.97) | (21.90) | (20.14) |
| Operating netback | | | 27.82 | 8.81 | | 6.07 | (7.22) | (1.32) | 1.91 |
| SCO and diesel ($/bbl) |
| ....................................................................................................................................................................................................................................................... |
| Average price realized | | | 69.40 | 51.34 | | 50.72 | 31.39 | 57.54 | 48.19 |
| ....................................................................................................................................................................................................................................................... |
| Royalties | | | (3.10) | (0.31) | | (0.82) | (0.35) | (0.35) | (0.45) |
| ....................................................................................................................................................................................................................................................... |
| Transportation and distribution costs | | | (4.18) | (3.75) | | (4.54) | (4.91) | (4.35) | (4.36) |
| ....................................................................................................................................................................................................................................................... |
| Net operating expenses | | | (26.64) | (26.94) | | (31.49) | (29.58) | (30.11) | (29.45) |
| Operating netback | | | 35.48 | 20.34 | | 13.87 | (3.45) | 22.73 | 13.93 |
| Average Oil Sands Segment ($/bbl) |
| ....................................................................................................................................................................................................................................................... |
| Average price realized | | | 63.73 | 47.54 | | 46.04 | 29.16 | 51.70 | 44.01 |
| ....................................................................................................................................................................................................................................................... |
| Royalties | | | (2.50) | (0.31) | | (0.72) | (0.32) | (0.42) | (0.44) |
| ....................................................................................................................................................................................................................................................... |
| Transportation and distribution costs | | | (4.41) | (4.06) | | (4.70) | (5.29) | (4.92) | (4.72) |
| ....................................................................................................................................................................................................................................................... |
| Net operating expenses | | | (23.34) | (25.38) | | (28.47) | (27.79) | (28.47) | (27.48) |
| Operating netback | | | 33.48 | 17.79 | | 12.15 | (4.24) | 17.89 | 11.37 |
| (A) Non-GAAP financial measures. See the Quarterly Operating Metrics Reconciliation and the Operating Summary Information – Non-GAAP Financial |
| Measures section of this Quarterly Report. |
| (C) Netbacks are based on sales volumes. Impact of inventory write-down is excluded until product is sold. |
| See accompanying footnotes and definitions to the quarterly operating summaries. |
| | 2021 First Quarter Suncor Energy Inc. 57 |
| Quarterly Operating Summary (continued)(unaudited) |
| Twelve |
| months |
| | Three months ended | ended |
| | | Mar 31 | Dec 31 | | Sep 30 | Jun 30 | Mar 31 | Dec 31 |
| Exploration and Production | | | 2021 | 2020 | | 2020 | 2020 | 2020 | 2020 |
| Production Volumes |
| Exploration and Production Canada (mbbs/d) | | | 58.0 | 56.8 | | 57.1 | 62.3 | 62.2 | 59.7 |
| ....................................................................................................................................................................................................................................................... |
| Exploration and Production International (mboe/d) | | | 37.3 | 40.9 | | 40.1 | 39.5 | 47.5 | 42.0 |
| Total production volumes (mboe/d) | | | 95.3 | 97.7 | | 97.2 | 101.8 | 109.7 | 101.7 |
| Total Sales Volumes (mboe/d) | | | 84.2 | 98.8 | | 96.0 | 108.7 | 107.2 | 102.6 |
| Netbacks(A)(C) |
| ....................................................................................................................................................................................................................................................... |
| East Coast Canada ($/bbl) |
| ....................................................................................................................................................................................................................................................... |
| Average price realized | | | 76.09 | 56.44 | | 58.77 | 27.55 | 69.50 | 52.62 |
| ....................................................................................................................................................................................................................................................... |
| Royalties | | | (9.24) | (6.83) | | (5.70) | (0.96) | (4.06) | (4.30) |
| ....................................................................................................................................................................................................................................................... |
| Transportation and distribution costs | | | (2.18) | (2.19) | | (2.56) | (4.68) | (2.13) | (2.93) |
| ....................................................................................................................................................................................................................................................... |
| Operating costs | | | (11.27) | (12.21) | | (13.23) | (10.40) | (13.23) | (12.23) |
| Operating netback | | | 53.40 | 35.21 | | 37.28 | 11.51 | 50.08 | 33.16 |
| International excluding Libya ($/boe) |
| ....................................................................................................................................................................................................................................................... |
| Average price realized | | | 72.05 | 54.93 | | 56.56 | 32.63 | 66.22 | 52.51 |
| ....................................................................................................................................................................................................................................................... |
| Transportation and distribution costs | | | (2.54) | (2.10) | | (2.50) | (1.83) | (2.50) | (2.23) |
| ....................................................................................................................................................................................................................................................... |
| Operating costs | | | (8.05) | (7.51) | | (7.29) | (7.01) | (6.56) | (7.06) |
| Operating netback | | | 61.46 | 45.32 | | 46.77 | 23.79 | 57.16 | 43.22 |
| (A) Non-GAAP financial measures. See the Quarterly Operating Metrics Reconciliation and the Operating Summary Information – Non-GAAP Financial |
| Measures section of this Quarterly Report. |
| (C) Netbacks are based on sales volumes. |
| See accompanying footnotes and definitions to the quarterly operating summaries. |
| 58 2021 First Quarter Suncor Energy Inc. |
| Quarterly Operating Summary (continued)(unaudited) |
| Twelve |
| months |
| | Three months ended | ended |
| | | Mar 31 | Dec 31 | | Sep 30 | Jun 30 | Mar 31 | Dec 31 |
| Refining and Marketing | | | 2021 | 2020 | | 2020 | 2020 | 2020 | 2020 |
| Refined product sales (mbbls/d) | | | 548.1 | 508.8 | | 534.0 | 438.8 | 531.5 | 503.4 |
| ....................................................................................................................................................................................................................................................... |
| Crude oil processed (mbbls/d) | | | 428.4 | 438.0 | | 399.7 | 350.4 | 439.5 | 407.0 |
| ....................................................................................................................................................................................................................................................... |
| Utilization of refining capacity (%) | | | 92 | 95 | | 87 | 76 | 95 | 88 |
| Refining and marketing margin – first-in, first-out (FIFO) ($/bbl)(A) | | | 40.75 | 25.75 | | 30.75 | 20.95 | 23.35 | 25.30 |
| ....................................................................................................................................................................................................................................................... |
| Refining and marketing margin – last-in, first-out (LIFO) ($/bbl)(A) | | | 30.30 | 25.05 | | 25.00 | 28.55 | 35.60 | 28.65 |
| ....................................................................................................................................................................................................................................................... |
| Refining operating expense ($/bbl)(A) | | | 5.75 | 5.20 | | 5.40 | 5.80 | 5.65 | 5.50 |
| Eastern North America |
| ....................................................................................................................................................................................................................................................... |
| Refined product sales (mbbls/d) |
| ....................................................................................................................................................................................................................................................... |
| | | | | | | Transportation fuels |
| ....................................................................................................................................................................................................................................................... |
| | | | | | | Gasoline | 115.6 | 105.5 | | 120.2 | 76.0 | 112.7 | 103.6 |
| ....................................................................................................................................................................................................................................................... |
| | | | | | | Distillate | 95.8 | 94.9 | | 93.4 | 84.2 | 94.8 | 91.9 |
| | | | | | | Total transportation fuel sales | 211.4 | 200.4 | | 213.6 | 160.2 | 207.5 | 195.5 |
| ....................................................................................................................................................................................................................................................... |
| | | | | | | Petrochemicals | 12.9 | 8.9 | | 8.2 | 9.4 | 9.9 | 9.1 |
| ....................................................................................................................................................................................................................................................... |
| | | | | | | Asphalt | 12.0 | 15.9 | | 19.1 | 13.4 | 11.0 | 14.9 |
| ....................................................................................................................................................................................................................................................... |
| | | | | | | Other | 25.6 | 24.3 | | 18.7 | 23.4 | 27.8 | 23.5 |
| Total refined product sales | | | 261.9 | 249.5 | | 259.6 | 206.4 | 256.2 | 243.0 |
| Crude oil supply and refining |
| ....................................................................................................................................................................................................................................................... |
| | | | | | | Processed at refineries (mbbls/d) | 200.5 | 212.6 | | 208.7 | 169.2 | 213.1 | 201.0 |
| ....................................................................................................................................................................................................................................................... |
| | | | | | | Utilization of refining capacity (%) | 90 | 96 | | 94 | 76 | 96 | 91 |
| Western North America |
| ....................................................................................................................................................................................................................................................... |
| Refined product sales (mbbls/d) |
| ....................................................................................................................................................................................................................................................... |
| | | | | | | Transportation fuels |
| ....................................................................................................................................................................................................................................................... |
| | | | | | | Gasoline | 117.0 | 107.4 | | 113.2 | 99.6 | 121.6 | 110.5 |
| ....................................................................................................................................................................................................................................................... |
| | | | | | | Distillate | 149.9 | 128.0 | | 127.2 | 106.1 | 133.9 | 123.8 |
| | | | | | | Total transportation fuel sales | 266.9 | 235.4 | | 240.4 | 205.7 | 255.5 | 234.3 |
| ....................................................................................................................................................................................................................................................... |
| | | | | | | Asphalt | 6.0 | 9.9 | | 17.4 | 14.4 | 8.7 | 12.6 |
| ....................................................................................................................................................................................................................................................... |
| | | | | | | Other | 13.3 | 14.0 | | 16.6 | 12.3 | 11.1 | 13.5 |
| Total refined product sales | | | 286.2 | 259.3 | | 274.4 | 232.4 | 275.3 | 260.4 |
| Crude oil supply and refining |
| ....................................................................................................................................................................................................................................................... |
| | | | | | | Processed at refineries (mbbls/d) | 227.9 | 225.4 | | 191.0 | 181.2 | 226.4 | 206.0 |
| ....................................................................................................................................................................................................................................................... |
| | | | | | | Utilization of refining capacity(D) (%) | 93 | 94 | | 80 | 76 | 94 | 86 |
| (A) Non-GAAP financial measures. See the Quarterly Operating Metrics Reconciliation and the Operating Summary Information – Non-GAAP Financial |
| Measures section of this Quarterly Report. |
| (D) The Edmonton refinery crude processing capacity has increased to 146,000 bbls/d in 2021 from 142,000 bbls/d in 2020. |
| See accompanying footnotes and definitions to the quarterly operating summaries. |
| | 2021 First Quarter Suncor Energy Inc. 59 |
| Quarterly Operating Metrics Reconciliation(unaudited) |
| Oil Sands Netbacks(A)(C)($ millions, except per barrel amounts) |
| March 31, 2021 | December 31, 2020 |
| SCO and | | Oil Sands | SCO and | | Oil Sands |
| For the quarter ended | | | | | Bitumen | Diesel | Segment | | | | Bitumen | Diesel | Segment |
| Operating revenues | | | | | 1 004 | 3 347 | | 4 351 | 638 | | | | | | 2 443 | 3 081 |
| ....................................................................................................................................................................................................................................................... |
| Other income (loss) | 7 | | (9) | | | | | | (2) | (9) | | (4) | | | | | | (13) |
| ....................................................................................................................................................................................................................................................... |
| Purchases of crude oil and products | (203) | | | | | (47) | (250) | (128) | | | | | | (47) | (175) |
| ....................................................................................................................................................................................................................................................... |
| Gross realization adjustment(2) | (35) | | | | | (74) | (63) | | | | | | (51) |
| Gross realizations | 773 | 3 217 | 438 | | | | | | 2 341 |
| ....................................................................................................................................................................................................................................................... |
| Royalties | (14) | | | | | (144) | (158) | (4) | | | | | | (14) | | (18) |
| ....................................................................................................................................................................................................................................................... |
| Royalties adjustment(5) | — | | — | 1 | | | | | | — |
| Net royalties | (14) | | | | | (144) | (3) | | | | | | (14) |
| ....................................................................................................................................................................................................................................................... |
| Transportation and distribution | (82) | | | | | (194) | (276) | (256) | | | | | | (170) | (426) |
| ....................................................................................................................................................................................................................................................... |
| Transportation and distribution adjustment(3) | — | | — | 189 | | | | | | — |
| Net transportation and distribution | (82) | | | | | (194) | (67) | | | | | | (170) |
| ....................................................................................................................................................................................................................................................... |
| Operating, selling and general | (325) | (1 648) | | (1 973) | (261) | | | | | | (1 478) | (1 739) |
| ....................................................................................................................................................................................................................................................... |
| Operating, selling and general adjustment(4) | 100 | | | | | 413 | 6 | | | | | | 250 |
| Net operating expenses | (225) | (1 235) | (255) | | | | | | (1 228) |
| Gross profit | 452 | 1 644 | 113 | | | | | | 929 |
| ....................................................................................................................................................................................................................................................... |
| Sales volumes (mbbls) | | | | | 16 246 | 46 343 | | | | | | 12 837 | 45 601 |
| Operating netback per barrel | | | | | 27.82 | 35.48 | 8.81 | | | | | | 20.34 |
| September 30, 2020 | June 30, 2020 |
| SCO and | | Oil Sands | SCO and | | Oil Sands |
| For the quarter ended | | | | | Bitumen | Diesel | Segment | | | | Bitumen | Diesel | Segment |
| Operating revenues | 527 | 2 040 | | 2 567 | 340 | | | | | | 1 312 | 1 652 |
| ....................................................................................................................................................................................................................................................... |
| Other income (loss) | 23 | | | | | 17 | | | 40 | (19) | | | | | | 42 | | 23 |
| ....................................................................................................................................................................................................................................................... |
| Purchases of crude oil and products | (143) | | | | | (28) | (171) | (69) | | | | | | (22) | | (91) |
| ....................................................................................................................................................................................................................................................... |
| Gross realization adjustment(2) | (83) | | | | | (69) | (34) | | | | | | (65) |
| Gross realizations | 324 | 1 960 | 218 | | | | | | 1 267 |
| ....................................................................................................................................................................................................................................................... |
| Royalties | (4) | | | | | (32) | | | (36) | (2) | | | | | | (14) | | (16) |
| ....................................................................................................................................................................................................................................................... |
| Transportation and distribution | (61) | | | | | (175) | (236) | (73) | | | | | | (199) | (272) |
| ....................................................................................................................................................................................................................................................... |
| Transportation and distribution adjustment(3) | 3 | | — | 2 | | | | | | — |
| Net transportation and distribution | (58) | | | | | (175) | (71) | | | | | | (199) |
| ....................................................................................................................................................................................................................................................... |
| Operating, selling and general | (190) | (1 460) | | (1 650) | (194) | | | | | | (1 334) | (1 528) |
| ....................................................................................................................................................................................................................................................... |
| Operating, selling and general adjustment(4) | (5) | | | | | 243 | (28) | | | | | | 141 |
| Net operating expenses | (195) | (1 217) | (222) | | | | | | (1 193) |
| Gross profit (loss) | 67 | | | | | 536 | (77) | | | | | | (139) |
| ....................................................................................................................................................................................................................................................... |
| Sales volumes (mbbls) | | | | | 10 949 | 38 646 | | | | | | 10 589 | 40 326 |
| Operating netback per barrel | 6.07 | 13.87 | (7.22) | | | | | | (3.45) |
| (A) Non-GAAP financial measures. See the Operating Summary Information – Non-GAAP Financial Measures section of this Quarterly Report. |
| (C) Impact of inventory write-down is excluded until product is sold. |
| See accompanying footnotes and definitions to the quarterly operating summaries. |
| 60 2021 First Quarter Suncor Energy Inc. |
| Quarterly Operating Metrics Reconciliation (continued)(unaudited) |
| Oil Sands Netbacks(A)(C)($ millions, except per barrel amounts) |
| March 31, 2020 |
| SCO and | Oil Sands |
| For the quarter ended | | | Bitumen | Diesel | Segment |
| Operating revenues | 538 | 2 779 | 3 317 |
| ....................................................................................................................................................................................................................................................... |
| Other income | 26 | | | 222 | 248 |
| ....................................................................................................................................................................................................................................................... |
| Purchases of crude oil and products | | | (362) | (45) | (407) |
| ....................................................................................................................................................................................................................................................... |
| Gross realization adjustment(2) | 126 | | | (273) |
| Gross realizations | 328 | 2 683 |
| ....................................................................................................................................................................................................................................................... |
| Royalties | (9) | | | (16) | (25) |
| ....................................................................................................................................................................................................................................................... |
| Royalties adjustment(5) | 3 | | | — |
| Net royalties | (6) | | | (16) |
| ....................................................................................................................................................................................................................................................... |
| Transportation and distribution | (86) | | | (203) | (289) |
| ....................................................................................................................................................................................................................................................... |
| Transportation and distribution adjustment(3) | 3 | | | — |
| Net transportation and distribution | (83) | | | (203) |
| ....................................................................................................................................................................................................................................................... |
| Operating, selling and general | | | (384) | (1 868) | (2 252) |
| ....................................................................................................................................................................................................................................................... |
| Operating, selling and general adjustment(4) | 130 | | | 465 |
| Net operating expenses | | | (254) | (1 403) |
| Gross (loss) profit | (15) | 1 061 |
| ....................................................................................................................................................................................................................................................... |
| Sales volumes (mbbls) | | | 11 605 | 46 638 |
| Operating netback per barrel | | | (1.32) | 22.73 |
| December 31, 2020 |
| SCO and | Oil Sands |
| For the year ended | | | Bitumen | Diesel | Segment |
| Operating revenues | | | 2 043 | 8 574 | 10 617 |
| ....................................................................................................................................................................................................................................................... |
| Other income | 21 | | | 277 | 298 |
| ....................................................................................................................................................................................................................................................... |
| Purchases of crude oil and products | | | (702) | (142) | (844) |
| ....................................................................................................................................................................................................................................................... |
| Gross realization adjustment(2) | (54) | | | (458) |
| Gross realizations | | | 1 308 | 8 251 |
| ....................................................................................................................................................................................................................................................... |
| Royalties | (19) | | | (76) | (95) |
| ....................................................................................................................................................................................................................................................... |
| Royalties adjustment(5) | 4 | | | — |
| Net royalties | (15) | | | (76) |
| ....................................................................................................................................................................................................................................................... |
| Transportation and distribution | | | (476) | (747) | (1 223) |
| ....................................................................................................................................................................................................................................................... |
| Transportation and distribution adjustment(3) | 197 | | | — |
| Net transportation and distribution | | | (279) | (747) |
| ....................................................................................................................................................................................................................................................... |
| Operating, selling and general | | | (1 029) | (6 140) | (7 169) |
| ....................................................................................................................................................................................................................................................... |
| Operating, selling and general adjustment(4) | 103 | 1 099 |
| Net operating expenses | | | (926) | (5 041) |
| Gross profit | 88 | 2 387 |
| ....................................................................................................................................................................................................................................................... |
| Sales volumes (mbbls) | | | 45 980 | 171 211 |
| Operating netback per barrel | 1.91 | 13.93 |
| (A) Non-GAAP financial measures. See the Operating Summary Information – Non-GAAP Financial Measures section of this Quarterly Report. |
| (C) Impact of inventory write-down is excluded until product is sold. |
| See accompanying footnotes and definitions to the quarterly operating summaries. |
| | | | | | 2021 First Quarter Suncor Energy Inc. 61 |
| Quarterly Operating Metrics Reconciliation (continued)(unaudited) |
| Exploration and Production Netbacks(A)($ millions, except per barrel amounts) |
| March 31, 2021 | December 31, 2020 |
| East Coast | | E&P | East Coast | | E&P |
| For the quarter ended | | | | | International | Canada | | | | | Other(6) | Segment | | | | International | Canada | | | | | | Other(6) | Segment |
| Operating revenues | | | | | | | | | 204 | 361 | | | | | 25 | 590 | | | | | | | 193 | 299 | 63 | 555 |
| ....................................................................................................................................................................................................................................................... |
| Royalties— | (44) | | | | | — | (44) | — | | | | | | | | | (36) | (49) | (85) |
| ....................................................................................................................................................................................................................................................... |
| Transportation and distribution | (7) | (10) | | | | | (35) | (52) | (7) | | | | | | | | | (12) | (1) | (20) |
| ....................................................................................................................................................................................................................................................... |
| Operating, selling and general | | | | | | | | | (33) | (66) | | | | | (11) | (110) | (32) | | | | | | | | | (71) | (11) | (114) |
| ....................................................................................................................................................................................................................................................... |
| Non-production costs(7) | | | | | | | | | 10 | | | 12 | 5 | | | | | | 6 |
| Gross profit | | | | | | | | | 174 | 253 | | | | | | | | | 159 | 186 |
| ....................................................................................................................................................................................................................................................... |
| Sales volumes (mboe) | | | | | 2 828 | 4 748 | | | | | | 3 511 | 5 294 |
| Operating netback per barrel | | | | | 61.46 | 53.40 | | | | | | 45.32 | 35.21 |
| September 30, 2020 | June 30, 2020 |
| East Coast | | E&P | East Coast | | E&P |
| For the quarter ended | | | | | International | Canada | | | | | Other(6) | Segment | | | | International | Canada | | | | | | Other(6) | Segment |
| Operating revenues | | | | | | | | | 201 | 311 | | | | | — | 512 | | | | | | | 133 | 160 | — | 293 |
| ....................................................................................................................................................................................................................................................... |
| Royalties— | (30) | | | | | — | (30) | — | | | | | | (6) | — | (6) |
| ....................................................................................................................................................................................................................................................... |
| Transportation and distribution | (9) | (15) | | | | | — | (24) | (7) | | | | | | | | | (26) | — | (33) |
| ....................................................................................................................................................................................................................................................... |
| Operating, selling and general | | | | | | | | | (33) | (77) | | | | | (8) | (118) | (34) | | | | | | | | | (68) | (9) | (111) |
| ....................................................................................................................................................................................................................................................... |
| Non-production costs(7) | 7 | | | | | 8 | 5 | | | | | | 7 |
| Gross profit | | | | | | | | | 166 | 197 | 97 | | | | | | | | | 67 |
| ....................................................................................................................................................................................................................................................... |
| Sales volumes (mboe) | | | | | 3 552 | 5 281 | | | | | | 4 086 | 5 803 |
| Operating netback per barrel | | | | | 46.77 | 37.28 | | | | | | 23.79 | 11.51 |
| (A) Non-GAAP financial measures. See the Operating Summary Information – Non-GAAP Financial Measures section of this Quarterly Report. |
| See accompanying footnotes and definitions to the quarterly operating summaries. |
| 62 2021 First Quarter Suncor Energy Inc. |
| Quarterly Operating Metrics Reconciliation (continued)(unaudited) |
| Exploration and Production Netbacks(A)($ millions, except per barrel amounts) |
| March 31, 2020 |
| East Coast | E&P |
| For the quarter ended | | | International | Canada | | | Other(6) | Segment |
| Operating revenues | | | | | 282 | 382 | | | (125) | 539 |
| ....................................................................................................................................................................................................................................................... |
| Royalties— | (22) | | | — | (22) |
| ....................................................................................................................................................................................................................................................... |
| Transportation and distribution | | | | | (11) | (12) | | | — | (23) |
| ....................................................................................................................................................................................................................................................... |
| Operating, selling and general | | | | | (32) | (85) | | | (16) | (133) |
| ....................................................................................................................................................................................................................................................... |
| Non-production costs(7) | 4 | 12 |
| Gross profit | | | | | 243 | 275 |
| ....................................................................................................................................................................................................................................................... |
| Sales volumes (mboe) | | | 4 257 | 5 501 |
| Operating netback per barrel | | | 57.16 | 50.08 |
| December 31, 2020 |
| East Coast | E&P |
| For the year ended | | | International | Canada | | | Other(6) | Segment |
| Operating revenues | | | | | 809 | 1 152 | | | (62) | 1 899 |
| ....................................................................................................................................................................................................................................................... |
| Royalties— | (94) | | | (49) | (143) |
| ....................................................................................................................................................................................................................................................... |
| Transportation and distribution | | | | | (34) | (65) | | | (1) | (100) |
| ....................................................................................................................................................................................................................................................... |
| Operating, selling and general | | | | | (131) | (301) | | | (44) | (476) |
| ....................................................................................................................................................................................................................................................... |
| Non-production costs(7) | | | | | 21 | 33 |
| Gross profit | | | | | 665 | 725 |
| ....................................................................................................................................................................................................................................................... |
| Sales volumes (mboe) | | | 15 406 | 21 879 |
| Operating netback per barrel | | | 43.22 | 33.16 |
| (A) Non-GAAP financial measures. See the Operating Summary Information – Non-GAAP Financial Measures section of this Quarterly Report. |
| See accompanying footnotes and definitions to the quarterly operating summaries. |
| | | 2021 First Quarter Suncor Energy Inc. 63 |
| Quarterly Operating Metrics Reconciliation (continued)(unaudited) |
| Refining and Marketing(A)($ millions, except per barrel amounts) |
| Twelve |
| months |
| | Three months ended | ended |
| | | Mar 31 | Dec 31 | | Sep 30 | Jun 30 | Mar 31 | Dec 31 |
| | | 2021 | 2020 | | 2020 | 2020 | 2020 | 2020 |
| Gross margin(8) | | | 1 738 | 1 132 | | 1 210 | 1 058 | 629 | 4 029 |
| ....................................................................................................................................................................................................................................................... |
| Other (loss) income | | | (45) | (10) | | (2) | (26) | 86 | 48 |
| ....................................................................................................................................................................................................................................................... |
| Non-refining margin(9) | | | (13) | (14) | | (14) | (312) | 283 | (57) |
| Refining and marketing margin(A) | | | 1 680 | 1 108 | | 1 194 | 720 | 998 | 4 020 |
| ....................................................................................................................................................................................................................................................... |
| Refinery production (mbbls)(10) | | | 41 211 | 43 036 | 38 857 | | | 34 369 | 42 729 | 158 991 |
| Refining and marketing margin – FIFO ($/bbl)(A) | | | 40.75 | 25.75 | | 30.75 | 20.95 | 23.35 | 25.30 |
| FIFO adjustment | | | (432) | (30) | | (223) | 261 | 524 | 532 |
| Refining and marketing margin – LIFO(A) | | | 1 248 | 1 078 | | 971 | 981 | 1 522 | 4 552 |
| Refining and marketing margin – LIFO ($/bbl)(A)(E)(F) | | | 30.30 | 25.05 | | 25.00 | 28.55 | 35.60 | 28.65 |
| Operating, selling and general(G) | | | 479 | 472 | | 417 | 390 | 480 | 1 759 |
| ....................................................................................................................................................................................................................................................... |
| Non-refining costs(G)(11) | | | (242) | (248) | | (207) | (191) | (239) | (885) |
| Refining operating expense | | | 237 | 224 | | 210 | 199 | 241 | 874 |
| ....................................................................................................................................................................................................................................................... |
| Refinery production (mbbls)(10) | | | 41 211 | 43 036 | 38 857 | | | 34 369 | 42 729 | 158 991 |
| Refining operating expense ($/bbl)(A) | | | 5.75 | 5.20 | | 5.40 | 5.80 | 5.65 | 5.50 |
| (A) Non-GAAP financial measures. See the Operating Summary Information – Non-GAAP Financial Measures section of this Quarterly Report. |
| (E) Refining and marketing margin – LIFO excludes the impact of short-term risk management activities. |
| (F) | The Suncor 5-2-2-1 index is most comparable to the company’s realized refining and marketing margin presented on a LIFO basis. |
| (G) Prior period amounts of operating, selling and general expense have been reclassified to align with the current year presentation of transportation |
| and distribution expense. This reclassification had no effect on the refining operating expense. |
| See accompanying footnotes and definitions to the quarterly operating summaries. |
| 64 2021 First Quarter Suncor Energy Inc. |
| Quarterly Operating Metrics Reconciliation (continued)(unaudited) |
| Refining and Marketing(A) |
| Suncor custom 5-2-2-1 index(12) |
| Twelve |
| months |
| (US$/bbl, except as noted) | | Three months ended | ended |
| | | Mar 31 | Dec 31 | | Sep 30 | Jun 30 | Mar 31 | Dec 31 |
| (average for the three months and twelve months ended) | | | 2021 | 2020 | | 2020 | 2020 | 2020 | 2020 |
| WTI crude oil at Cushing | | | 57.80 | 42.65 | | 40.95 | 27.85 | 46.10 | 39.40 |
| ....................................................................................................................................................................................................................................................... |
| SYN crude oil at Edmonton | | | 54.30 | 39.60 | | 38.50 | 23.30 | 43.40 | 36.25 |
| ....................................................................................................................................................................................................................................................... |
| WCS at Hardisty | | | 45.40 | 33.35 | | 31.90 | 16.35 | 25.60 | 26.85 |
| New York Harbor 2-1-1 crack(H) | | | 15.60 | 9.85 | | 10.20 | 12.20 | 14.75 | 11.75 |
| ....................................................................................................................................................................................................................................................... |
| Chicago 2-1-1 crack(H) | | | 13.40 | 7.95 | | 7.75 | 6.75 | 9.75 | 8.05 |
| Product value |
| New York Harbor 2-1-1 crack(I) | | | | | | | 40% | 29.35 | 21.00 | | 20.45 | 16.00 | 24.35 | 20.45 |
| ....................................................................................................................................................................................................................................................... |
| Chicago 2-1-1 crack(J) | | | | | | | 40% | 28.50 | 20.25 | | 19.50 | 13.85 | 22.35 | 19.00 |
| ....................................................................................................................................................................................................................................................... |
| WTI | | | | | | | 20% | 11.55 | 8.55 | | 8.20 | 5.55 | 9.20 | 7.90 |
| ....................................................................................................................................................................................................................................................... |
| Seasonality factor | | | 6.50 | 6.50 | | 5.00 | 5.00 | 6.50 | 5.75 |
| | | 75.90 | 56.30 | | 53.15 | 40.40 | 62.40 | 53.10 |
| Crude value |
| SYN | | | | | | | 40% | 21.70 | 15.85 | | 15.40 | 9.30 | 17.35 | 14.50 |
| ....................................................................................................................................................................................................................................................... |
| WCS40% | | | 18.15 | 13.35 | | 12.75 | 6.55 | 10.25 | 10.75 |
| ....................................................................................................................................................................................................................................................... |
| WTI | | | | | | | 20% | 11.55 | 8.55 | | 8.20 | 5.55 | 9.20 | 7.90 |
| | | 51.40 | 37.75 | | 36.35 | 21.40 | 36.80 | 33.15 |
| Suncor custom 5-2-2-1 index | | | 24.50 | 18.55 | | 16.80 | 19.00 | 25.60 | 19.95 |
| Suncor custom 5-2-2-1 index (Cdn$/bbl)(F) | | | 31.05 | 24.50 | | 22.35 | 26.35 | 34.40 | 26.75 |
| (A) | Non-GAAP financial measures. See the Operating Summary Information – Non-GAAP Financial Measures section of this Quarterly Report. |
| (F) | The Suncor 5-2-2-1 index is most comparable to the company’s realized refining and marketing margin presented on a LIFO basis. |
| (H) 2-1-1 crack spreads are indicators of the refining margin generated by converting two barrels of WTI into one barrel of gasoline and one barrel |
| of diesel. |
| (I) | Product value of the New York Harbor 2-1-1 crack is calculated by adding the values of the New York Harbor 2-1-1 crack and WTI, multiplying itby 40% and rounding to the nearest nickel. |
| (J) | Product value of the Chicago 2-1-1 crack is calculated by adding the values of the Chicago 2-1-1 crack and WTI, multiplying it by 40% androunding to the nearest nickel. |
| See accompanying footnotes and definitions to the quarterly operating summaries. |
| | | | 2021 First Quarter Suncor Energy Inc. 65 |
