-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Iaruy0/ptUNjIxbGgkJhCAdTwwXhz7hrRpcVhE2IQ1lJAyKjMdaS0gAURWHO1vQI e9x+aIbmd71/VWxH0XXjCA== 0000912057-02-001866.txt : 20020413 0000912057-02-001866.hdr.sgml : 20020413 ACCESSION NUMBER: 0000912057-02-001866 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20020117 FILED AS OF DATE: 20020118 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SUNCOR ENERGY INC CENTRAL INDEX KEY: 0000311337 STANDARD INDUSTRIAL CLASSIFICATION: PETROLEUM REFINING [2911] STATE OF INCORPORATION: A0 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 6-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-12384 FILM NUMBER: 2512457 BUSINESS ADDRESS: STREET 1: 112 4TH AVENUE SW PO BOX 38 STREET 2: CALGARY ALBERTA CITY: CANADA T2P 2V5 STATE: A0 BUSINESS PHONE: 4032698100 MAIL ADDRESS: STREET 1: 112 FOURTH AVE SW BOX 38 STREET 2: CALGARY ALBERTA CITY: CANADA T2P 2V5 FORMER COMPANY: FORMER CONFORMED NAME: GREAT CANADIAN OIL SANDS & SUN OIL CO LTD DATE OF NAME CHANGE: 19791129 FORMER COMPANY: FORMER CONFORMED NAME: SUNCOR INC DATE OF NAME CHANGE: 19970430 6-K 1 a2068093z6-k.txt FORM 6-K FORM 6-K SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Report of Foreign Private Issuer Pursuant to Rule 13a - 16 or 15d - 16 of the Securities Exchange Act of 1934 For the month of: January 2002 Commission File Number: 1-12384 SUNCOR ENERGY INC. (Name of registrant) 112 FOURTH AVENUE S.W. P.O. BOX 38 CALGARY, ALBERTA CANADA, T2P 2V5 Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F: Form 20-F Form 40-F X --------- --------- Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the SEC pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934: Yes No X --------- --------- If "Yes" is marked, indicate the number assigned to the registrant in connection with Rule 12g3-2(b): N/A EXHIBIT INDEX EXHIBIT DESCRIPTION OF EXHIBIT - -------------------------------------------------------------------------------- EXHIBIT 1 EARNINGS RELEASE DATED JANUARY 17, 2002 RE: 2001 FOURTH QUARTER RESULTS EXHIBIT 1 FOR IMMEDIATE RELEASE JANUARY 17, 2002 SUNCOR ENERGY ENDS 2001 WITH PROJECT MILLENNIUM COMPLETE, INCREASED PRODUCTION AND EARNINGS (All financial figures are in Canadian dollars unless noted otherwise. Natural gas converts to oil at a 6:1 ratio. Financial figures for the year ended December 31, 2001 and quarterly figures are unaudited.) CALGARY, ALBERTA -- Suncor Energy Inc. today announced it set a new company record for oil production and recorded unaudited consolidated earnings for 2001 of $388 million ($1.63 per common share), up from $377 million in 2000 ($1.58 per common share). Cash flow from operations for 2001 was $831 million ($3.52 per common share), compared with $958 million ($4.11 per common share) in 2000. Suncor's daily average production rate was 156,600 barrels of oil equivalent (BOE), compared with 154,400 BOE per day the year before. "The year 2001 was a landmark year for Suncor in that we completed Millennium, a project that is delivering increased production for Suncor and serves as a foundation for our long-term growth strategy," said Rick George, president and chief executive officer. "We delivered on our objective of doubling production capacity to 225,000 barrels per day by year end." Suncor expects production at the oil sands plant to average about 210,000 barrels per day in 2002 as the new Millennium facilities are fully integrated with base operations. Project Millennium was a four-year expansion of Suncor's oil sands operation with a $3.4 billion capital cost. The increase in production, combined with higher natural gas commodity prices and retail margins earlier in the year, contributed to the year-over-year increase in earnings. Suncor's cash flow declined from 2000 primarily as a result of the cost of Project Millennium start-up. "With Project Millennium behind us, Suncor can focus on getting back to basics in 2002," said George. "We'll focus our efforts on strengthening our business by delivering steady, reliable production and reducing operating costs. And we'll also seek opportunities to debottleneck our oil sands operation and add additional oil production. The company's growth plans will also stay high on our agenda." George said Suncor will continue construction of its Firebag In-Situ Oil Sands Project and further plans to expand its oil sands business up to 550,000 barrels per day over the next decade. Another key priority for Suncor is to reduce its $3.1 billion debt. As part of that effort, Suncor has hedged 40 per cent of its 2002 production to mitigate the impact of an uncertain crude oil market on the company's ability to reduce debt.
- ------------------------------------------------------------------------------------------------------------------- EARNINGS COMPONENTS Year ended December 31 ($ millions after income taxes) 2001 2000* - ------------------------------------------------------------------------------------------------------------------- OPERATIONAL EARNINGS 433 414 - ------------------------------------------------------------------------------------------------------------------- NATURAL GAS Asset divestments 4 69 Restructuring 1 (30) - ------------------------------------------------------------------------------------------------------------------- STUART OIL SHALE PROJECT Partial asset write-down (3) (80) - ------------------------------------------------------------------------------------------------------------------- OIL SANDS Start-up expenses - Project Millennium (90) (9) - ------------------------------------------------------------------------------------------------------------------- ADJUSTMENT RELATED TO REVALUATION OF FUTURE INCOME TAX BALANCES 43 13 - ------------------------------------------------------------------------------------------------------------------- NET EARNINGS 388 377 * The determination of operational earnings for 2000 has been restated to be consistent with the treatment and presentation in 2001 of the "adjustment related to revaluation of future income tax balances" noted above. - -------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------- CASH FLOW COMPONENTS Year ended December 31 ($ millions) 2001 2000 - ------------------------------------------------------------------------------------------------------------------- OPERATIONAL CASH FLOW 1,061 1,009 - ------------------------------------------------------------------------------------------------------------------- NATURAL GAS Restructuring costs (1) (9) - ------------------------------------------------------------------------------------------------------------------- OIL SANDS Start-up expenses - Project Millennium (141) (15) Overburden removal - Project Millennium (88) (27) - ------------------------------------------------------------------------------------------------------------------- CASH FLOW FROM OPERATIONS 831 958 - -------------------------------------------------------------------------------------------------------------------
OPERATING HIGHLIGHTS DURING 2001 OIL SANDS Oil Sands production hit a new record in 2001, averaging 123,200 barrels per day, up approximately eight per cent from 2000. Cash operating costs at Oil Sands increased during the year to $17.00 per barrel, including Project Millennium start-up costs.
- ------------------------------------------------------------------------------------------------------------------- OIL SANDS CASH OPERATING COSTS Year ended December 31 (dollars per barrel) 2001 2000 - ------------------------------------------------------------------------------------------------------------------- Base plant 11.90 12.55 - ------------------------------------------------------------------------------------------------------------------- Start-up expenses - Project Millennium 5.10 1.00 - ------------------------------------------------------------------------------------------------------------------- TOTAL CASH OPERATING COSTS 17.00 13.55 - -------------------------------------------------------------------------------------------------------------------
NATURAL GAS Suncor's Natural Gas business production averaged 33,400 BOE per day, down from 40,500 BOE per day in 2000. Although production decreased, a reflection of asset divestments in 2000, the business benefited from increased commodity prices that contributed to improved operational earnings. SUNOCO Sunoco, Suncor's refining and marketing arm, recorded higher operational earnings in 2001 that reflected the higher margins from industrial/commercial sales channels, stronger retail natural gas margins, and continued growth in sales volume. Refining margins were lower compared to last year. FOURTH QUARTER RESULTS Suncor's earnings for the fourth quarter 2001 were $26 million ($0.09 per common share), compared to $111 million ($0.47 per common share) in the fourth quarter of 2000. Operational earnings in the fourth quarter were $71 million, compared to $108 million in the fourth quarter of 2000. This $37 million decrease in operational earnings reflects lower crude oil and natural gas prices, lower refining margins and a higher anticipated proportion of lower value (sour crude oil) production associated with the start-up of Project Millennium. Prices and margins remained volatile in light of weakening demand coinciding with the global economic slowdown, events of September 11 and warmer weather. Partially offsetting these factors were lower crude oil hedging losses and higher oil production. Operational cash flow was $242 million, compared with $236 million last year. Revenues in the fourth quarter of 2001 were $883 million, compared to $927 million in the fourth quarter of 2000.
- ----------------------------------------------------------------------------------------------------------------- EARNINGS COMPONENTS Fourth Quarter ($ millions after income taxes) 2001 2000* - ----------------------------------------------------------------------------------------------------------------- OPERATIONAL EARNINGS 71 108 - ----------------------------------------------------------------------------------------------------------------- NATURAL GAS Asset divestments 4 -- - ----------------------------------------------------------------------------------------------------------------- OIL SANDS Start-up expenses - Project Millennium (49) (3) - ----------------------------------------------------------------------------------------------------------------- ADJUSTMENT RELATED TO REVALUATION OF FUTURE INCOME TAX BALANCES - 6 - ----------------------------------------------------------------------------------------------------------------- NET EARNINGS 26 111 * The determination of operational earnings for 2000 has been restated to be consistent with the treatment and presentation in 2001 of the "adjustment related to revaluation of future income tax balances" in 2001 noted above. - -----------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------- CASH FLOW COMPONENTS Fourth Quarter ($ millions) 2001 2000 - ----------------------------------------------------------------------------------------------------------------- OPERATIONAL CASH FLOW 242 236 - ----------------------------------------------------------------------------------------------------------------- OIL SANDS Start-up expenses - Project Millennium (76) (5) Overburden removal - Project Millennium (33) (15) - ----------------------------------------------------------------------------------------------------------------- CASH FLOW FROM OPERATIONS 133 216 - -----------------------------------------------------------------------------------------------------------------
OIL SANDS For the fourth quarter of 2001, Oil Sands recorded earnings of $37 million, down from fourth quarter 2000 earnings of $68 million. Operational earnings were $86 million, before the impact of start-up expenses associated with Project Millennium, compared to operational earnings of $71 million in the same period in 2000. The $15 million increase in operational earnings primarily reflects higher sales volumes from the Project Millennium facilities and lower hedging losses. The expenses associated with the start-up of Project Millennium have been excluded from operational earnings. If the incremental start-up volumes had been excluded from the determination of operational earnings, it is estimated that operational earnings would have been lower compared to the fourth quarter of 2000. Partially offsetting the above favourable factors were lower commodity prices and the sale of proportionately more lower-value sour oil products. Oil Sands production during the fourth quarter averaged 153,000 barrels of oil per day, compared to 110,000 barrels per day during the same period in 2000. The production increase was the result of Project Millennium start-up volumes, offset by production losses in October that occurred as a result of an unscheduled seven-day maintenance shutdown. Base plant cash operating costs for the fourth quarter were $9.35 per barrel, before start-up expenses associated with Project Millennium. Not all of the expenses associated with the additional volumes from Millennium are included in the $9.35 per barrel cash cost. As a result, the $9.35 per barrel cash cost is not indicative of cash costs in the future.
- ------------------------------------------------------------------------------------------------------------- OIL SANDS CASH OPERATING COSTS Fourth Quarter (dollars per barrel) 2001 2000 - ------------------------------------------------------------------------------------------------------------- Base plant 9.35 14.50 - ------------------------------------------------------------------------------------------------------------- Start-up expenses - Project Millennium 8.10 1.90 - ------------------------------------------------------------------------------------------------------------- TOTAL CASH OPERATING COSTS 17.45 16.40 - -------------------------------------------------------------------------------------------------------------
NATURAL GAS Natural Gas reported $12 million in earnings for the fourth quarter of 2001, compared with $31 million in the same period in 2000. Operational earnings in the fourth quarter of 2001 declined to $8 million, compared to $31 million for the fourth quarter of 2000. Gas prices in the fourth quarter averaged $3.10 per thousand cubic feet, 61 per cent lower than in the fourth quarter of 2000. Although production was three per cent lower in the fourth quarter of 2001, compared to the fourth quarter of 2000, Natural Gas exited December with a production rate that was slightly higher than the previous year. Finding and development costs (excluding acquisitions) for the five-year period ended 2001 were $11.30 per BOE, compared to $7.70 per BOE for the five-year period ending 2000. Natural Gas activities over the last two years have been directed towards bringing non-producing reserves to the producing stage in support of the business's 2002 production goal of an average of 180 to 190 mmcf per day. SUNOCO Sunoco had breakeven earnings in the fourth quarter of 2001, compared to earnings of $23 million in the fourth quarter of 2000. Operational earnings were breakeven for the fourth quarter of 2001, compared to operational earnings of $17 million in the fourth quarter 2000. The Rack-Back business had an operational loss of $8 million in the quarter, compared to operational earnings of $16 million in the fourth quarter of 2000, reflecting a 36 per cent decline in refining margins. The quarter was also impacted by a two-week extension of a planned turnaround at the Sarnia Refinery. Sunoco's Rack-Forward business had operational earnings of $8 million in the fourth quarter 2001, up from $1 million in the same period last year. CORPORATE The corporate centre had costs of $23 million in the fourth quarter of 2001, compared to $11 million in the fourth quarter of 2000. This increase reflects higher interest costs, an increase in funding to the Suncor Energy Foundation and higher compensation costs including the effect associated with a higher share price that increased incentive plan costs. On January 10, 2002, Suncor filed a US$1 billion unallocated base shelf prospectus with securities regulators in Canada and the United States for the issuance of securities. Suncor will monitor the debt capital markets for opportunities to refinance bank debt with longer-term debt. Suncor Energy is an integrated Canadian energy company. Suncor's Oil Sands business, located near Fort McMurray, AB, mines and upgrades oil sand into custom-blended refinery feedstock and premium transportation fuels. Suncor is also a conventional natural gas producer in western Canada and operates a refining and marketing business in Ontario under the Sunoco brand. At the same time as Suncor meets today's energy needs, the company invests in alternative and renewable energy for the future. Suncor's common shares and preferred securities are listed for trading on the Toronto and New York stock exchanges. CERTAIN STATEMENTS IN THIS NEWS RELEASE ARE FORWARD-LOOKING, INCLUDING STATEMENTS ABOUT SUNCOR'S STRATEGY FOR GROWTH, EXPECTED EXPENDITURES, COMMODITY PRICES, COSTS, SCHEDULES AND OPERATING OR FINANCIAL RESULTS. THESE STATEMENTS MAY BE IDENTIFIED BY WORDS LIKE "EXPECTS," "PLANS," AND SIMILAR EXPRESSIONS. THESE STATEMENTS ARE NOT GUARANTEES OF FUTURE PERFORMANCE AS THEY ARE BASED ON A CURRENT FACTS AND ASSUMPTIONS AND INVOLVE RISKS AND UNCERTAINTIES. SUNCOR'S ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THOSE EXPRESSED OR IMPLIED BY ITS FORWARD LOOKING STATEMENTS AS A RESULT OF KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS. THESE INCLUDE: CHANGES IN THE GENERAL ECONOMIC, MARKET AND BUSINESS CONDITIONS; FLUCTUATIONS IN SUPPLY AND DEMAND FOR SUNCOR'S PRODUCTS; FLUCTUATIONS IN COMMODITY PRICES; FLUCTUATIONS IN CURRENCY EXCHANGE RATES; SUNCOR'S ABILITY TO RESPOND TO CHANGING MARKETS AND ACCESS THE CAPITAL MARKETS; THE ABILITY OF SUNCOR TO RECEIVE TIMELY REGULATORY APPROVALS; THE INTEGRITY AND RELIABILITY OF SUNCOR'S CAPITAL ASSETS; THE CUMULATIVE IMPACT OF OTHER RESOURCE DEVELOPMENT PROJECTS; SUNCOR'S ABILITY TO COMPLY WITH CURRENT AND FUTURE ENVIRONMENTAL LAWS; THE ACCURACY OF SUNCOR'S PRODUCTION ESTIMATES AND PRODUCTION LEVELS AND ITS SUCCESS AT EXPLORATION AND DEVELOPMENT DRILLING AND RELATED ACTIVITIES; THE MAINTENANCE OF SATISFACTORY RELATIONSHIPS WITH UNIONS, EMPLOYEE ASSOCIATIONS, JOINT VENTURES, SUPPLIERS AND CUSTOMERS; COMPETITIVE ACTIONS OF OTHER COMPANIES, INCLUDING INCREASED COMPETITION FROM OTHER OIL AND GAS COMPANIES OR FROM COMPANIES WHICH PROVIDE ALTERNATIVE SOURCES OF ENERGY; THE UNCERTAINTIES RESULTING FROM POTENTIAL DELAYS OR CHANGES IN PLANS WITH RESPECT TO EXPLORATION OR DEVELOPMENT PROJECTS OR CAPITAL EXPENDITURES; ACTIONS BY GOVERNMENTAL AUTHORITIES INCLUDING INCREASING TAXES, CHANGES IN ENVIRONMENTAL AND OTHER REGULATIONS; THE ABILITY AND WILLINGNESS OF PARTIES WITH WHOM SUNCOR HAS MATERIAL RELATIONSHIPS TO PERFORM THEIR OBLIGATIONS TO SUNCOR; THE OCCURRENCE OF UNEXPECTED EVENTS SUCH AS FIRES, BLOWOUTS, FREEZE-UPS, EQUIPMENT FAILURES AND OTHER SIMILAR EVENTS AFFECTING SUNCOR OR OTHER PARTIES WHOSE OPERATIONS OR ASSETS DIRECTLY OR INDIRECTLY AFFECT SUNCOR; AND THE SUCCESSFUL AND TIMELY IMPLEMENTATION OF ITS GROWTH PROJECTS INCLUDING THE FIREBAG IN-SITU OIL SANDS PROJECT AND PROJECT VOYAGEUR. IN ADDITION, PROJECT VOYAGEUR WILL REQUIRE REGULATORY APPROVAL TO INCREASE UPGRADING CAPACITY, ACCELERATE OIL SANDS MINING AND EXPAND IN-SITU DEVELOPMENT, AS WELL AS FAVOURABLE FISCAL AND MARKET CONDITIONS AND THE APPROVAL OF SUNCOR'S BOARD OF DIRECTORS. SEE SUNCOR'S CURRENT ANNUAL INFORMATION FORM, ANNUAL REPORT AND INTERIM REPORTS AND OTHER DOCUMENTS SUNCOR FILES WITH SECURITIES REGULATORY AUTHORITIES, FOR FURTHER DETAILS. -30- For more information about Suncor, visit our website at www.suncor.com or contact: John Rogers (403) 269-8670. SUNCOR ENERGY INC. CONSOLIDATED STATEMENTS OF EARNINGS
(unaudited) For the years Fourth quarter ended December 31 ($ millions) 2001 2000 2001 2000 ------------- -------------- ------------ ------------- REVENUES (note 2) 883 927 3,995 3,388 ------------- -------------- ------------ ------------- EXPENSES Purchases of crude oil and products (note 2) 291 232 1,391 807 Operating, selling and general 273 271 1,010 918 Exploration 15 12 22 53 Royalties 15 65 134 199 Taxes other than income taxes 93 92 367 361 Depreciation, depletion and amortization 101 94 360 365 (Gain) loss on disposal of assets (9) 1 (7) (148) Start-up expenses - Project Millennium (note 3) 76 5 141 15 Write off of oil shale assets (note 5) - - 48 125 Restructuring - - (2) 65 Interest 3 2 18 8 ------------- -------------- ------------ ------------- 858 774 3,482 2768 ------------- -------------- ------------ ------------- EARNINGS BEFORE INCOME TAXES 25 153 513 620 ------------- -------------- ------------ ------------- PROVISION FOR INCOME TAXES Current (12) 7 4 45 Future (note 6) 11 35 121 198 ------------- -------------- ------------ ------------- (1) 42 125 243 ------------- -------------- ------------ ------------- NET EARNINGS 26 111 388 377 Dividends on preferred securities (5) (7) (26) (26) ------------- -------------- ------------ ------------- Net earnings attributable to common shareholders 21 104 362 351 ------------- -------------- ------------ ------------- PER COMMON SHARE (dollars) Net earnings attributable to common shareholders (Note 7) - basic 0.09 0.47 1.63 1.58 ------------- -------------- ------------ ------------- - diluted 0.09 0.46 1.61 1.57 ------------- -------------- ------------ ------------- Cash dividends 0.085 0.085 0.34 0.34 ------------- -------------- ------------ -------------
(See accompanying notes) SUNCOR ENERGY INC. CONSOLIDATED BALANCE SHEETS
(unaudited) DECEMBER 31 December 31 ($ millions) 2001 2000 -------------- ------------- ASSETS Current assets Cash and cash equivalents 1 21 Accounts receivable 306 407 Income taxes recoverable 28 - Future income taxes 29 45 Inventories 258 192 -------------- ------------- Total current assets 622 665 -------------- ------------- Property, plant and equipment, net 7,141 5,883 Deferred charges and other 199 166 Future income taxes 132 119 -------------- ------------- Total assets 8,094 6,833 ============== ============= LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Short-term borrowings 31 64 Accounts payable 351 424 Accrued liabilities 321 285 Income taxes payable - 15 Future income taxes 28 9 Taxes other than income taxes 42 39 Current portion of long-term borrowings - 1 -------------- ------------- Total current liabilities 773 837 -------------- ------------- Long-term borrowings 3,113 2,192 Accrued liabilities and other 251 252 Future income taxes 1,180 1,080 Shareholders' equity (see below) 2,777 2,472 -------------- ------------- Total liabilities and shareholders' equity 8,094 6,833 ============== ============= Shareholders' equity: Number Number -------------- ------------ Preferred securities 17,540,000 514 17,540,000 514 Share capital 222,978,245 555 221,900,579 537 Retained earnings 1,708 1,421 -------------- ------------- 2,777 2,472 ============== =============
(See accompanying notes) SUNCOR ENERGY INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
For the years Fourth quarter ended December 31 ($ millions) 2001 2000 2001 2000 ------------- ------------ ----------- ----------- OPERATING ACTIVITIES Cash flow provided from operations (1), (2) 133 216 831 958 Decrease (increase) in operating working capital Accounts receivable 42 (18) 101 (130) Inventories (19) (31) (66) (31) Accounts payable and accrued liabilities 33 76 (37) 93 Taxes payable (1) 7 (17) 18 ------------- ------------ ----------- ----------- CASH PROVIDED FROM OPERATING ACTIVITIES 188 250 812 908 ------------- ------------ ----------- ----------- CASH USED IN INVESTING ACTIVITIES (2) (400) (541) (1,680) (1,607) ------------- ------------ ----------- ----------- NET CASH DEFICIENCY BEFORE FINANCING ACTIVITIES (212) (291) (868) (699) ------------- ------------ ----------- ----------- FINANCING ACTIVITIES Increase (decrease) in short-term borrowings 9 39 (33) 32 Proceeds from issuance of long-term borrowings (Note 8) - - 500 - Net increase (decrease) in other long-term borrowings 232 175 487 792 Issuance of common shares under stock option plan 1 1 15 9 Dividends paid on preferred securities (3) (12) (12) (48) (47) Dividends paid on common shares (18) (17) (73) (71) ------------- ------------ ----------- ----------- CASH PROVIDED FROM FINANCING ACTIVITIES 212 186 848 715 ------------- ------------ ----------- ----------- INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS - (105) (20) 16 CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 1 126 21 5 ------------- ------------ ----------- ----------- CASH AND CASH EQUIVALENTS AT END OF PERIOD 1 21 1 21 ============= ============ =========== =========== PER COMMON SHARE (dollars) (1) Cash flow provided from operations 0.59 0.97 3.73 4.32 (3) Dividends paid on preferred securities (pre-tax) 0.05 0.05 0.21 0.21 ------------- ------------ ----------- ----------- Cash flow provided from operations after deducting dividends paid on preferred securities 0.54 0.92 3.52 4.11 - -------------------------------------------------------------------------------------------------------------------------- (2) See Schedules of Segmented Data
(See accompanying notes) SUNCOR ENERGY INC. CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (unaudited)
Preferred Share Retained ($ millions) Securities Capital Earnings ---------------- -------------- --------------- AT DECEMBER 31, 1999 514 524 1,070 Net earnings - - 377 Dividends paid on preferred securities - - (26) Dividends paid on common shares - - (71) Issued for cash under stock option plan - 9 - Issued under dividend reinvestment plan - 4 (4) Income taxes - impact of new standard - - 75 ---------------- -------------- --------------- AT DECEMBER 31, 2000 514 537 1,421 Net earnings - - 388 Dividends paid on preferred securities - - (26) Dividends paid on common shares - - (72) Issued for cash under stock option plan - 15 - Issued under dividend reinvestment plan - 3 (3) ---------------- -------------- --------------- AT DECEMBER 31, 2001 514 555 1,708 ---------------- -------------- ---------------
(See accompanying notes) COMMON SHARE INFORMATION for the years ended December 31
2001 2000 --------------- ------------ Average number outstanding, weighted monthly (thousands) 222,515 221,415 =============== ============ as at December 31 Share price at end of trading Toronto Stock Exchange - $Canadian 52.40 38.30 =============== ============ New York Stock Exchange - $U.S. 32.90 25.70 =============== ============ Book value per common share - $Canadian 10.15 8.83 =============== ============ - $U.S. 6.37 5.89 =============== ============ Common share options outstanding 5,884,035 5,860,875 =============== ============ RATIOS (unaudited) as at December 31 Debt to debt plus shareholders' equity (%) 53.1 47.7 =============== ============ Net tangible asset coverage on long-term debt (times) Before deduction of future income taxes 2.2 2.5 =============== ============ After deduction of future income taxes 1.9 2.1 =============== ============ for the years ended December 31 Debt to cash flow provided from operations (times) 3.8 2.3 =============== ============ Interest coverage on long-term debt (times) Net earnings 3.7 5.6 =============== ============ Cash flow from operations 5.9 8.6 =============== ============
SUNCOR ENERGY INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (unaudited) 1. ACCOUNTING POLICIES These financial statements follow the same accounting policies and methods of computation as, and should be read in conjunction with, the most recent annual financial statements, with the exception to the elimination of intercompany sales as discussed in note 2. 2. ELIMINATION OF INTERCOMPANY SALES During the first quarter of 2001, the company changed the methodology of accounting for sales from its upstream operations (Oil Sands and Natural Gas) to its downstream operations (Sunoco) from a deeming concept to the actual tracking of product shipped. This change was made to better reflect the current operational activities within the company. This prospective change increased sales and other operating revenues and purchases of crude oil by $128 million for the quarter and $473 million year to date and has no impact on consolidated and segmented net earnings in the accompanying financial statements. 3. START-UP EXPENSES Start-up expenses represent pre-operating costs incurred in the commissioning of the company's Oil Sands Project Millenium. 4. SUPPLEMENTAL INFORMATION
------------------------------------------------------------------------------------------------ For the years ended December 31 ($ millions) 2001 2000 ------------------------------------------------------------------------------------------------ Interest paid 129 104 ------------------------------------------------------------------------------------------------ Income taxes paid 23 20 ------------------------------------------------------------------------------------------------ Interest expense ------------------------------------------------------------------------------------------------ Long term interest cost 143 112 ------------------------------------------------------------------------------------------------ Capitalized interest (125) (104) ------------------------------------------------------------------------------------------------ 18 8 ------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------ Fourth quarter ------------------------------------------------------------------------------------------------ ($ millions) 2001 2000 ------------------------------------------------------------------------------------------------ Interest paid 18 23 ------------------------------------------------------------------------------------------------ Income taxes paid - 5 ------------------------------------------------------------------------------------------------ Interest expense ------------------------------------------------------------------------------------------------ Long term interest cost 36 34 ------------------------------------------------------------------------------------------------ Capitalized interest (33) (32) ------------------------------------------------------------------------------------------------ 3 2 ------------------------------------------------------------------------------------------------
HEDGE POSITION UPDATE AS AT DECEMBER 31
----------------------------------------------------------------------------------- QUANTITY $US (WTI) $CDN ----------------------------------------------------------------------------------- 2001 ----------------------------------------------------------------------------------- Crude Oil 47,500 bbl/day @ $18.75 $29.86* ----------------------------------------------------------------------------------- $26.00 - $31.88 $41.41 - $50.77 * 10,000 bbl/day @ (costless collar) (costless collar) ----------------------------------------------------------------------------------- 2002 ----------------------------------------------------------------------------------- Crude Oil 41,000 bbl/day @ $20.06 $31.95 * ----------------------------------------------------------------------------------- $21.00 - $26.19 $33.44 - $41.71 * 10,000 bbl/day @ (costless collar) (costless collar) ----------------------------------------------------------------------------------- $22.00 - $26.28 $35.04 - $41.85* 12,000 bbl/day @ (costless collar) (costless collar) ----------------------------------------------------------------------------------- $23.00 - $27.59 $36.63 - $43.94 * 18,000 bbl/day @ (costless collar) (costless collar) ----------------------------------------------------------------------------------- $23.50 - $28.15 $37.43 - $44.83 * 3,000 bbl/day @ (costless collar) (costless collar) ----------------------------------------------------------------------------------- 2003 ----------------------------------------------------------------------------------- Crude Oil $21.00 - $25.74 $33.44 - $40.99 * 44,000 bbl/day @ (costless collar) (costless collar) ----------------------------------------------------------------------------------- 2004 ----------------------------------------------------------------------------------- Crude Oil 11,000 bbl/day @ $21.00 - $23.65 $33.44 - $37.66 * (costless collar) (costless collar) ----------------------------------------------------------------------------------- 2005 ----------------------------------------------------------------------------------- Crude Oil 15,000 bbl/day @ $21.58 $34.37 * ----------------------------------------------------------------------------------- * For presentation purposes, these $US hedges have been converted to a $CDN equivalent based on the month end $US/$CDN exchange rate of 1.5926. -----------------------------------------------------------------------------------
For 2001 and 2002, Suncor has in place U.S. dollar swaps in the amounts of U.S. $312 million and $314 million respectively, at an exchange rate of Canadian$ to U.S.$ of $0.71. 5. OIL SHALE PROJECT Effective April 5, 2001, the company sold its interest in the Stuart Oil Shale Project to joint venture co-owners Southern Pacific Petroleum NL and Central Pacific Minerals NL(SPP/CPM). Under the terms of the purchase, the company retains a 5% royalty interest in Stage 1 of the project and SPP/CPM and Suncor retain world wide rights to the ATP technology. The company made total payments as part of the transaction in the amount of $5 million (AUD$7 million), which SPP/CPM will use to fund Stage 1 operating, capital and transition costs. The company received 2.5 million SPP shares and 0.926 million CPM shares in consideration. SPP/CPM issued the company 12.5 million SPP share options and 4.6 million CPM share options, exercisable over five years at a strike price of AUD$1.25 per SPP share and AUD$3.38 per CPM share. Suncor has agreed to surrender its partly paid Restricted Class shares (SPP 57 million and CPM 18.85 million) which were acquired in 1997. During the second quarter of 2001, the company wrote off the carrying value of the capital assets and extinguished the long-term borrowings and accrued interest. The earnings impact of the sale of our remaining interest in the project was $48 million pre-tax, $3 million after-tax. 6. INCOME TAX RATE REDUCTION Effective April 1, 2001, the Alberta and Ontario governments passed legislation that reduced the provincial income tax rates. The future tax balances for the company have been revalued at the new rates resulting in a cumulative future tax recovery of $43 million. The new rates are reflected in the tax provisions for the current period. The income tax rate reduction does not affect the company's cash flow or liquidity. 7. EARNINGS PER COMMON SHARE The following table provides a reconciliation between basic and diluted earnings per common share:
- --------------------------------------------------------------------------------------------------- Fourth quarter Years ended December 31 - --------------------------------------------------------------------------------------------------- ($ MILLIONS) 2001 2000 2001 2000 - --------------------------------------------------------------------------------------------------- Net earnings attributable to common shareholders 21 104 362 351 - --------------------------------------------------------------------------------------------------- Dividends on preferred securities -** 6 -** 26*** - --------------------------------------------------------------------------------------------------- Net earnings before deducting dividends on preferred securities 21** 110*** 362** 377*** - --------------------------------------------------------------------------------------------------- (MILLIONS OF COMMON SHARES ) - --------------------------------------------------------------------------------------------------- Weighted-average number of common shares 223 222 222 221 - --------------------------------------------------------------------------------------------------- Dilutive securities: - --------------------------------------------------------------------------------------------------- Options/shares issued under long term incentive plan 3 2 3 2 - --------------------------------------------------------------------------------------------------- Preferred securities converted -** 15*** -** 17*** - --------------------------------------------------------------------------------------------------- Weighted-average number of diluted common shares 226 239 225 240 - --------------------------------------------------------------------------------------------------- (DOLLARS PER COMMON SHARE) - --------------------------------------------------------------------------------------------------- Basic earnings per share 0.09* 0.47* 1.63* 1.58* - --------------------------------------------------------------------------------------------------- Diluted earnings per share 0.09** 0.46*** 1.61** 1.57*** - ---------------------------------------------------------------------------------------------------
* Basic earnings per share is the net earnings attributable to common shareholders divided by the weighted-average number of common shares. ** For the quarter and year ended December 31, 2001, diluted earnings per share is the net earnings attributable to common shareholders divided by the weighted-average number of diluted common shares. Dividends on preferred securities of $5 million and $26 million respectively, and preferred securities converted of 12 million shares and 13 million shares respectively, have an anti-dilutive impact, therefore they are not included in the calculation of diluted earnings per share. *** For the quarter and year ended December 31, 2000, diluted earnings per share is the net earnings before deducting dividends on preferred securities divided by the weighted-average number of diluted common shares. 8. ISSUANCE OF MEDIUM TERM NOTES On August 21, 2001, the company issued $500 million of Series 2 Medium Term Notes at an interest rate of 6.7%, which is payable semi-annually. The net proceeds received were used to repay commercial paper and bank borrowings. These notes will mature August 22, 2011. 9. RESTRUCTURING In 2000, the carrying value of certain assets of the company's Natural Gas business were written down to their net estimated recoverable amount and a provision for estimated restructuring costs was recorded. In the third quarter of 2001, some of these properties that were previously written down were sold, realizing a gain before tax of $3 million. Provisions for estimated restructuring costs were also increased by $1 million before tax to reflect increased employee termination. SUNCOR ENERGY INC. SCHEDULES OF SEGMENTED DATA (unaudited)
Corporate Oil Sands Natural Gas Sunoco and eliminations Total --------------- ------------ ------------- ---------------- --------------- ($ millions) 2001 2000 2001 2000 2001 2000 2001 2000 2001 2000 --------------- ------------ ------------- ------------ --------------- EARNINGS For the years ended December 31 REVENUES Sales and other operating revenues 1,227 544 178 237 2,585 2,604 - - 3,990 3,385 Intersegment revenues 158 792 271 191 3 - (432) (983) - - Interest - - - - - - 5 3 5 3 ------ ------ ---- ---- ----- ----- ---- ---- ------ ------ 1,385 1,336 449 428 2,588 2,604 (427) (980) 3,995 3,388 EXPENSES Purchases of crude oil and products 99 3 - - 1,721 1,783 (429) (979) 1,391 807 Operating, selling and general 481 467 64 74 350 310 115 67 1,010 918 Exploration - - 22 53 - - - - 22 53 Royalties 30 98 104 101 - - - - 134 199 Taxes other than income taxes 12 12 3 3 351 345 1 1 367 361 Depreciation, depletion and amortization 233 232 70 78 56 54 1 1 360 365 (Gain) loss on disposal of assets 1 - (8) (147) - (1) - - (7) (148) Start-up expenses - Project Millennium 141 15 - - - - - - 141 15 Write off of oil shale assets - - - - - - 48 125 48 125 Restructuring - - (2) 65 - - - - (2) (243) Interest - - - - - - 18 8 18 8 ------ ------ ---- ---- ----- ----- ---- ---- ------ ------ 997 827 253 227 2,478 2,491 (246) (777) 3,482 2,768 ------ ------ ---- ---- ----- ----- ---- ---- ------ ------ EARNINGS (LOSS) BEFORE INCOME TAXES 388 509 196 201 110 113 (181) (203) 513 620 Provision for income taxes (105) (194) (79) (103) (30) (32) 89 86 (125) (243) ------ ------ ---- ---- ----- ----- ---- ---- ------ ------ NET EARNINGS (LOSS) 283 315 117 98 80 81 (92) (117) 388 377 ====== ====== ==== ==== ===== ===== ==== ==== ====== ====== CAPITAL EMPLOYED As at December 31 1,398 1,412 317 412 483 386 32 22 2,230 2,232 ====== ====== ==== ==== ===== ===== ==== ==== ====== ====== Twelve months ended December 31 RETURN ON AVERAGE CAPITAL EMPLOYED (%) 20.1 22.8 32.1 17.2 18.4 20.5 - - 17.9 16.6 ====== ====== ==== ==== ===== ===== ==== ==== ====== ====== RETURN ON AVERAGE CAPITAL EMPLOYED (%) * 6.4 10.6 32.1 17.2 18.4 20.5 - - 7.5 9.3 ====== ====== ==== ==== ===== ===== ==== ==== ====== ======
* The company's definition of capital employed excludes capitalized costs related to major projects in progress. If capital employed were to include these capitalized costs, the return on average capital employed would be as stated on this line. SUNCOR ENERGY INC. SCHEDULES OF SEGMENTED DATA (cont'd) (unaudited)
Corporate Oil Sands Natural Gas Sunoco and eliminations Total --------------- ------------ ------------- ---------------- --------------- ($ millions) 2001 2000 2001 2000 2001 2000 2001 2000 2001 2000 --------------- ------------ ------------- ------------ --------------- CASH FLOW BEFORE FINANCING ACTIVITIES For the years ended December 31 CASH PROVIDED FROM (USED IN) OPERATING ACTIVITIES: Cash flow provided from (used in) operations Net earnings (loss) 283 315 117 98 80 81 (92) (117) 388 377 Exploration expenses Cash - - 12 12 - - - - 12 12 Dry hole costs - - 10 41 - - - - 10 41 Non-cash items included in earnings Depreciation, depletion and amortization 233 232 70 78 56 54 1 1 360 365 Future income taxes 89 189 76 101 18 (16) (62) (76) 121 198 Current income tax provision allocated to Corporate 17 5 3 2 12 48 (32) (55) - - (Gain) loss on disposal of assets 1 - (8) (147) - (1) - - (7) (148) Write off of oil shale assets - - - - - - 48 125 48 125 Restructuring - - (3) 56 - - - - (3) 56 Other (5) (12) 3 (4) 2 6 8 (7) 8 (17) Overburden removal outlays (31) (48) - - - - - - (31) (48) Overburden removal outlays - Project Millennium (88) (27) - - - - - - (88) (27) Increase (decrease) in deferred credits and other (13) 1 - 1 (3) 2 29 20 13 24 ------ ------ ---- ---- ----- ----- ---- ---- ------ ------ Total cash flow provided from (used in) operations 486 655 280 238 165 174 (100) (109) 831 958 Decrease (increase) in operating working capital (35) (169) 44 27 17 40 (45) 52 (19) (50) ------ ------ ---- ---- ----- ----- ---- ---- ------ ------ Total cash provided from (used in) operating activities 451 486 324 265 182 214 (145) (57) 812 908 ------ ------ ---- ---- ----- ----- ---- ---- ------ ------ CASH PROVIDED FROM (USED IN) INVESTING ACTIVITIES: Capital and exploration expenditures (1,479) (1,808) (132) (127) (54) (45) (13) (18) (1,678) (1,998) Deferred maintenance shutdown expenditures (5) (3) (2) (1) (9) (9) - - (16) (13) Deferred outlays and other investments (2) (5) (1) - (9) (7) (7) (1) (19) (13) Proceeds from disposals 10 101 22 314 1 2 - - 33 417 ------ ------ ---- ---- ----- ----- ---- ---- ------ ------ Total cash provided from (used in) investing activities (1,476) (1,715) (113) 186 (71) (59) (20) (19) (1,680) (1,607) ------ ------ ---- ---- ----- ----- ---- ---- ------ ------ NET CASH SURPLUS (DEFICIENCY) BEFORE FINANCING ACTIVITIES (1,025) (1,229) 211 451 111 155 (165) (76) (868) (699) ====== ====== ==== ==== ===== ===== ==== ==== ====== ======
SUNCOR ENERGY INC. SCHEDULES OF SEGMENTED DATA
(unaudited) Corporate Oil Sands Natural Gas Sunoco and eliminations Total ------------- ------------- ------------- ---------------- ------------- ($ millions) 2001 2000 2001 2000 2001 2000 2001 2000 2001 2000 ------------- ------------- ------------- ---------------- ------------- EARNINGS Fourth quarter REVENUES Sales and other operating revenues 298 122 26 80 558 724 - - 882 926 Intersegment revenues 34 202 37 71 - - (71) (273) - - Interest - - - - - - 1 1 1 1 --- --- -- --- --- --- --- ---- --- --- 332 324 63 151 558 724 (70) (272) 883 927 EXPENSES Purchases of crude oil and products 9 1 - - 355 505 (73) (274) 291 232 Operating, selling and general 115 131 18 21 98 92 42 27 273 271 Exploration - - 15 12 - - - - 15 12 Royalties 5 25 10 40 - - - - 15 65 Taxes other than income taxes 3 3 1 - 89 88 - 1 93 92 Depreciation, depletion and amortization 67 62 18 18 15 13 1 1 101 94 (Gain) loss on disposal of assets - - (9) 1 - - - - (9) 1 Start-up expenses - Project Millennium 76 5 - - - - - - 76 5 Interest - - - - - - 3 2 3 2 --- --- -- --- --- --- --- ---- --- --- 275 227 53 92 557 698 (27) (243) 858 774 --- --- -- --- --- --- --- ---- --- --- EARNINGS (LOSS) BEFORE INCOME TAXES 57 97 10 59 1 26 (43) (29) 25 153 Provision for Income taxes (20) (29) 2 (28) (1) (3) 20 18 1 (42) --- --- -- --- --- --- --- ---- --- --- NET EARNINGS (LOSS) 37 68 12 31 - 23 (23) (11) 26 111 === === == === === === === ==== === ===
SUNCOR ENERGY INC. SCHEDULES OF SEGMENTED DATA (cont'd)
(unaudited) Oil Sands Natural Gas Sunoco and eliminations Total ------------- ------------- ------------- ---------------- ------------- ($ millions) 2001 2000 2001 2000 2001 2000 2001 2000 2001 2000 ------------- ------------- ------------- ---------------- ------------- CASH FLOW BEFORE FINANCING ACTIVITIES Fourth quarter CASH PROVIDED FROM (USED IN) OPERATING ACTIVITIES: Cash flow provided from (used in) operations Net earnings (loss) 37 68 12 31 - 23 (23) (11) 26 111 Exploration expenses Cash - - 8 2 - - - - 8 2 Dry hole costs - - 7 10 - - - - 7 10 Non-cash items included in earnings Depreciation, depletion and amortization 67 62 18 18 15 13 1 1 101 94 Future income taxes 17 36 (3) 27 22 (20) (25) (8) 11 35 Current income tax provision allocated to Corporate 4 (7) 1 1 (21) 23 16 (17) - - (Gain) loss on disposal of assets - - (9) 1 - - - - (9) 1 Restructuring - - - - - - - - - - Other 4 (15) 1 (6) - - 3 1 8 (20) Overburden removal outlays (8) (14) - - - - - - (8) (14) Overburden removal outlays - Project Millennium (33) (15) - - - - - - (33) (15) Increase (decrease) in deferred credits and other 2 4 - - 2 2 18 6 22 12 ---- ---- ---- ---- ---- ---- ---- ---- ----- ----- Total cash flow provided from (used in) operations 90 119 35 84 18 41 (10) (28) 133 216 Decrease (increase) in operating working capital 19 (18) (8) (15) 49 57 (5) 10 55 34 ---- ---- ---- ---- ---- ---- ---- ---- ----- ----- Total cash provided from (used in) operating activities 109 101 27 69 67 98 (15) (18) 188 250 ---- ---- ---- ---- ---- ---- ---- ---- ----- ----- CASH PROVIDED FROM (USED IN) INVESTING ACTIVITIES: Capital and exploration expenditures (313) (480) (48) (32) (28) (15) (5) (8) (394) (535) Deferred maintenance shutdown expenditures (1) (2) - (1) (9) - - - (10) (3) Deferred outlays and other investments - - - - (9) (1) (1) (2) (10) (3) Proceeds from disposals - - 13 - 1 - - - 14 - ---- ---- ---- ---- ---- ---- ---- ---- ----- ----- Total cash provided from (used in) investing activities (314) (482) (35) (33) (45) (16) (6) (10) (400) (541) ---- ---- ---- ---- ---- ---- ---- ---- ----- ----- NET CASH SURPLUS (DEFICIENCY) BEFORE FINANCING ACTIVITIES (205) (381) (8) 36 22 82 (21) (28) (212) (291) ==== ==== ==== ==== ==== ==== ==== ==== ===== =====
SUNCOR ENERGY INC. QUARTERLY OPERATING SUMMARY (unaudited)
For the quarter ended For the years ended -------------------------------------------------------- -------------------- DEC 31 Sept 30 June 30 Mar 31 Dec 31 DEC 31 Dec 31 2001 2001 2001 2001 2000 2001 2000 -------- -------- -------- -------- -------- -------- -------- OIL SANDS PRODUCTION (a) 153.0 116.5 109.7 113.4 110.0 123.2 113.9 SALES (a) - light sweet crude oil 62.4 54.2 55.0 53.0 64.0 56.2 64.3 - diesel 15.3 15.0 15.2 13.5 11.0 14.8 9.3 - light sour crude oil 64.3 40.6 31.5 31.4 27.5 42.0 35.8 - bitumen 4.3 8.0 13.0 8.6 11.0 8.5 6.2 -------- -------- -------- -------- -------- -------- -------- 146.3 117.8 114.7 106.5 113.5 121.5 115.6 -------- -------- -------- -------- -------- -------- -------- AVERAGE SALES PRICE (b) - light sweet crude oil 30.22 35.20 36.05 36.09 37.22 34.17 35.31 - other (diesel, light sour crude oil and bitumen) 20.12 28.21 27.12 25.66 23.71 24.86 27.09 - total 24.43 31.43 31.40 30.84 31.33 29.17 31.67 - total * 25.65 37.37 38.35 38.17 43.27 34.21 41.29 CASH OPERATING COSTS (1), (c) 17.45 18.25 17.00 15.40 16.40 17.00 13.55 TOTAL OPERATING COSTS (2), (c) 19.40 20.95 19.65 18.60 19.50 19.60 17.25 NATURAL GAS GROSS PRODUCTION ** Conventional - natural gas (d) 180 176 177 177 183 177 200 - natural gas liquids (a) 2.4 2.4 2.3 2.3 2.5 2.4 3.0 - crude oil (a) *** 1.3 1.5 1.5 1.7 1.6 1.5 4.2 - total (e) 33.7 33.2 33.3 33.5 34.6 33.4 40.5 AVERAGE SALES PRICE - natural gas (f) 3.10 3.90 6.78 10.73 8.02 6.09 4.72 - natural gas (f) * 3.09 3.90 6.82 10.81 8.05 6.12 4.73 - natural gas liquids (b) 23.47 30.26 39.32 45.07 43.00 34.38 36.66 - crude oil - conventional(b) 27.17 33.17 36.75 37.35 36.01 33.92 29.50 - crude oil - conventional(b) * 28.60 37.86 42.30 42.12 44.35 38.14 39.80 NET WELLS DRILLED Conventional - exploratory **** 14 1 3 2 4 20 16 - development 6 7 3 2 4 18 19 -------- -------- -------- -------- -------- -------- -------- 20 8 6 4 8 38 35 -------- -------- -------- -------- -------- -------- --------
SUNCOR ENERGY INC. QUARTERLY OPERATING SUMMARY (unaudited)
For the quarter ended For the years ended -------------------------------------------------------- -------------------- DEC 31 Sept 30 June 30 Mar 31 Dec 31 DEC 31 Dec 31 2001 2001 2001 2001 2000 2001 2000 -------- -------- -------- -------- -------- -------- -------- SUNOCO REFINED PRODUCT SALES (g) Transportation fuels Gasoline - retail ***** 4.5 4.4 4.3 4.1 4.4 4.3 4.2 - other 4.3 4.6 4.5 4.0 4.1 4.4 4.0 Jet fuel 0.4 0.7 0.7 1.1 1.0 0.7 1.1 Diesel 2.9 3.0 3.5 3.1 3.3 3.1 3.1 -------- -------- -------- -------- -------- -------- -------- 12.1 12.7 13.0 12.3 12.8 12.5 12.4 Petrochemicals 0.4 0.6 0.6 0.5 0.6 0.5 0.6 Heating oils 0.4 0.2 0.3 0.8 0.6 0.4 0.4 Heavy fuel oils 0.6 0.9 0.8 0.9 0.7 0.8 0.6 Other 0.5 0.7 0.6 0.4 0.5 0.6 0.6 -------- -------- -------- -------- -------- -------- -------- 14.0 15.1 15.3 14.9 15.2 14.8 14.6 -------- -------- -------- -------- -------- -------- -------- NATURAL GAS SALES (d) 92 95 102 92 95 95 83 -------- -------- -------- -------- -------- -------- -------- MARGINS (h) Refining (3) 3.7 4.3 8.1 6.2 5.8 5.7 5.9 Retail (4) 6.9 5.9 7.6 6.1 7.0 6.6 6.6 CRUDE OIL SUPPLY AND REFINING Processed at Suncor refinery (g) 9.2 11.0 10.9 9.8 10.5 10.2 10.9 Utilization of refining capacity (%) 83 99 98 88 95 92 98
* Excludes the impact of hedging activities. ** Currently all Natural Gas production is located in the Western Canada Sedimentary Basin. *** Before deducting fourth quarter 2001 Alberta Crown royalty of 0.2 thousand barrels per day (fourth quarter 2000 - 0.2 thousand barrels per day). **** Excludes exploratory wells in progress. *****Excludes sales through joint venture interests. (a) thousands of barrels per day (b) dollars per barrel (c) dollars per barrel rounded to the nearest $0.05 (d) millions of cubic feet per day (e) BOE (6:1 basis) per day (f) dollars per thousand cubic feet (g) thousands of cubic metres per day (h) cents per litre DEFINITIONS (1) Cash operating costs - operating, selling and general expenses, taxes other than income taxes and overburden cash expenditures for the period (2) Total operating costs - cash and non-cash operating costs (total Oil Sands expenses less purchases of crude oil and products and royalties in Schedules of Segmented Data). (3) Refining margin - average wholesale unit price from all products minus average unit cost of crude oil. (4) Retail margin - average street price of Sunoco branded retail gasoline minus refining gasoline price. METRIC CONVERSION Crude oil, refined products, etc 1m3 (cubic metre) = approx. 6.29 barrels Natural gas 1m3 (cubic metre) = approx. 35.49 cubic feet SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. SUNCOR ENERGY INC. Date: January 17, 2002 By: "JANICE B. ODEGAARD" ------------------------------------ JANICE B. ODEGAARD Vice President, Associate General Counsel and Corporate Secretary -----END PRIVACY-ENHANCED MESSAGE-----