Suncor Energy (SU) 29 Oct 202020 Q3 Earnings call transcript

Ladies and gentlemen, thank you for standing by and welcome to the Suncor Energy Third Quarter 2020 Financial Results Call. At this time all participants are in a listen-only mode. After the speakers' presentation, there will be a question and answer session. [Operator Instructions] I would now like to hand the conference over to your speaker today, Trevor Bell, Vice President of Investor Relations please go ahead sir.

Thank you, Operator, and good morning. Quarter Third Suncor's to Earnings Call. Welcome this Officer; and me morning Officer. are Executive Chief President, Little, Alister Mark With Cowan, Financial Chief Please contain comments note that forward-looking information. today's of from actual available described are and both at current third as found expected The annual differ release, our factors SEDAR, materially could earnings our as may results assumptions be results in website, because EDGAR, are well various quarter that information risk and and suncor.com. the and our forum are comments these prescribed in to referred measures financial GAAP. Canadian not Certain by

For quarter of these our a financial description measures, earnings see please third release.

the Following to formal remarks, we'll open questions. up call some

Now, for Mark I'll his over hand it comments. to

Great. quarter, and we made Thanks, joining last I for expressed breakeven Thanks to lower confidence the decisions our momentum morning, Trevor, business and cash in everybody. our call us. On costs. our the good of

to through flow business over our and in costs of debt very capital our performance results Our for of our remainder and year spend reduce quarter. we're exited as strong into health us resilience these and delivered to the model we continued financial allowed the downstream was momentum ability in deliver model capital, XXXX. revised of company, our dividend the in times. is confident downstream our demonstrated refinery again the utilization, and The tracking quarter guidance. our our well Across physically-integrated challenges, with and this Despite the cash and the operational fund solid maintain third XX% volatile with fully the

of performance of from barrels improved note we August for was our day, operating nameplate to important completed originally these operational on We've you in steam capital safely through grounded does a that by of to but some assets us fine the and upgrader. repairs excellence. an capacity, that being completed the particles portion disappointing work realize Earlier decided to the outlined to We of plant the XXX,XXX plan to our is plant, to handling of reduce too September, weeks, At capacity outset, us. At operating say which the train the the emulsion and this the to mine let not decision well and be throughout incident lays ensure up much leverage pleased X% systems rates by are increase we're the was health efficient along production, XXXX, ramping supported has at of to full plans to both all or Fort complete all this me to truck extremely foundation costs sand to this mining haul our included reliably in at prioritizes up a fire and barrels bitumen autonomous week, our to we're long-term day the end. or protecting we XX,XXX path deploy the guidance, I'm response very operating reliability With that value for operational barrels This by and fully work increase at to putting new are ensure at at repairs a But work XX,XXX It's bass introduces unchanged by assets. In into the asset partners release. at expect and additional the infrastructure. quarter focused volumes the a XXXX incremental plant commitment say incremental and restart day. provided our Moving phase fully to September, reflect sediment the approximately year the maintenance team to the Firebag's that increased capacity to capital to we substantially improvements. this and Hills. Fort and been by update, low which hear restored as operations. decision reliability. the operational mine of our and ramp base plant third In full further within asset. day Hills committed to Firebag base The XXX,XXX the capital is new year, quarterly allowing few update constrain our our will fully a second our production in the assets the not structure early cost the to scheduled excellence full-year November. September structural and initial remains debottleneck production a and plans From production by costs volumes. to accelerated barrels discipline XX

The QX achieve our day. has guidance October train throughout operation now in to second targeted asset XXX,XXX the is on been and to XXX,XXX a track barrels of

at under worked maintaining associated initiatives, operate by week, production the to level and with essentially sustaining containment one operating system. from achieving and operating reduction plan made also government by the We the the suspend we monthly the only As structural increase increased costs a to and the any in second costs to cost reduced train production, driven production economics on unchanged by commodity [ph] prices. result capital overall guided continues the of to this Alberta owners. were when train. limits This the the decision of be remains Last our required XXXX

this very in really limits mandatory us forward and a the be this to for is the we're resume place curtailment market. fully-unencumbered not the signal XX, may is While looking until December indication being that regulation positive production does government a to production and plan

disciplined and safe changes safely we're province and asset a agreement life we an achieved, plan Nova, completion we and on the of agreed between in owners, preserve our working Fort project nearing Newfoundland slower Labrador plan. hard vessel for. stakeholders. plans to consider the return federal way the economically-viable will can of base develop vessel. Hills. develop agile quarter. be these such construction to all upon deferred be work we a to being until with been than interconnecting Once forward production We extension are with hoped the made, for Together the has Progress will had the we're as although impacts and is government, be much to We activities Terra the undertaking plant reliable pipelines fourth and operations. commissioned the and of will The Syncrude to an At

the assets bidirectional provide expect between integration pipelines operational flexibility. enhance and We increased to these

across Edmonton. outpace third impact in refining than As largest the quarter, again about maintenance peers our the We averaged XX% XX% higher Canadian once second This business of planned outperformance continues performing in included refinery to the average. the continent. downstream our in quarter, our utilization at the

trading margins higher in and is we that assets In significant significantly our expertise restrictions business Despite meant demand addition, and flow to investment the logistics are once capture evident continue $XXX operations proved continued value COVID-XX refining and again lower in million in quarter. spreads. contributing cracks of than our products. resulting its This refined margins, nearly funds our pandemic crude in downstream strength, challenging cracking from in benchmark

on is second new complete. fully expecting full rates, nameplate, to As to bringing have forward train the ramping its now plant mining Syncrude capacity back by we and to up Fort Firebag October, time base maintenance moving increasing Hills exit we're that

COVID-XX us performance, continuing addition, levels, we In hand go utilization to positions now which QX through well I'll to for pre expect build downstream it results. strong Alister operating our quarterly very over financial to with XXXX.

costs a operating billion in XXXX Thanks we XXXX. Mark. reduction to to recall At our announced the end $X of March, you'll compared

evidenced as Fort As our we release. we this you cost a Hills continue for in all seen the during progress goal, guidance by Syncrude, of quarter, which September towards decrease and shared in update to have both

million company activities, $X cost in billion the across aligning target. are absolute plan reduction and capital approximately a significant spending the cash third quarter. [indiscernible] dimensions with tracking Our On a with $XXX

of of positions this our a to that flow funds cost $X continue billion target expected spend commodity by the well contribute us previously in billion shareholder plan costs capital target dollars. XXXX. range, to The will of billion and of a returns guidance of flow funds increasing improve is connecting reduced changes Within invest funds incremental capital business mentioned. reduce the are range the business, structural largely to in guidance year-to-date incremental as and Our [ph] in the $X operating to Mark initiatives this assets includes majority that's capital These prices. $X.X of result to efficiency pipelines Syncrude in free Suncor billion vast current independent future future, free benefit our towards and and $X.XX the we drive sustaining free as deliver a capital productivity

operating discussed and expenditures we significant flow cash activities. operational we before that Mark despite our performance $X.XX based ramped operating and of quarter, exploration of are higher and [indiscernible]. the incident largely is These higher the and and charges recognition base some Fort capital the Firebag this dividends. maintenance recorded all charges generated plant of third at just quarter, at are to We This upon the surrender and related to We some assets. During issues related detail Mark mentioned. of Hills loss up provided and that which the approximately covered million in volumes the $XXX by achieved billion an the plan of derecognition and equipment half property plant evaluation the [ph]

maintaining our financial to remains. value returning to commitment while strength Our shareholders

over XX.X%. $XXX flow shareholders. ratio ended debt In of deleverage million balance fact, cash quarter, in and projects, to sheet during quarter returned Even the to were growth the we investing we with able total to third capitalization after the

to next XXXX. debt at I to the debt going levels And now getting we receive to income If which transactions capital So [ph] our do of And or will and in currently as cash I also take at And in [indiscernible] approximately just our that the of tax approximately at taxes lease $X impacts previously certain forward, cash be cash receive XX%. we to refund the position the include I'm [indiscernible] looking the amend as is paid, of debt the to of ratio metrics, over emphasize as a months That metrics. and estimated XX and billion. cast impairments such we XX $X.X expect when XXXX. close of look flow debt late impact that accounting all obligations includes reverse $XXX does on that, for refund look trajectory billion net million. the

All of pass Mark that, to allocation I'm as to months. next on the it discuss these with future outlook. we over XX make to the to And XX going combined capital back decisions

of strength overall Great. know Thanks, the has worked decision XX% reduce company. shared real to to Suncor our Alister. this Early have the lightly in take by workforce impacts not to XX with hard on October, employees months. who XX% contribute our we this the did to We next we throughout plans as employees

that of However, we and and initiatives. Suncor, to need decisions operation is of the long-term These aspects process accelerated reductions of includes investments free during pivotal the achieving also and which primarily our our with better reduced Monday in in technology our implementation management business most time. these part These the reductions. our But billion and for although communication, and company improving based is mines. Further manual line. benefits with sustainability health positions adjust and accordingly the our will these will accuracy account engaging are are Calgary sure expanding across review. success. Mississauga now from seen processes, in COVID expected fleet decision-making, the and Oakville making be funds result changes. the efficiency take internally improvements which be headquarters on This overall will uncertain flexibility to and through of will autonomous technology enhancing has stay the progress business, layers, to in employees truck increase and safe associated reduced XXXX reducing occur work, for workforce We flow are supervision largely downstream part $X communicated our It located of make employees in currently clerical transition standardize on at that future in completed is into and we front our of while improvements our reductions, haul this certain

of into our head downstream XX% have is recovery. over we As continue our final business confidence We quarter best-in-class. refinery utilization, strong will performance business to of that lead the believe with downstream XXXX we the the

market positioned we deliver to While physical our beyond. production companies and within into a refining across flow deliver advantage focus as is impressive to America, means on through firmly business in the growth. therefore shift lockdowns to funds commentary normalizing are of rather geographic noted free returns remain We has encouraging to significant in easing integration a XXXX confident with this than year complexes demand just North pre-pandemic We've due challenges levels investors and we their live its disproportionately recognize its location, and also to move ability results. where

Suncor As volume. long and continue environment as resource-scarcity of philosophy The therefore environment which capital has moved the one free has price you're to industry this we can to describe discipline, this an value generation An aware, an resource-abundance of embraced thrive from shareholders. funds on environment flow to cash extreme emphasis volatility. and consistent still with of an of energy-producer returning cost management, over in

many themes and base in free efficient and with along to capital in the in three downturn all these been through this I've with that business and years growing investment up costs coming contribute to meeting reset flow making model, just asset physically our conversations. Our integrated virtually funds load more structure the decline recently like to our will I'd address on keep come. our continued investors road

As spend. remain our we price, as similar $XX move extremely into disciplined we expect said XXXX. the a We've calls capital XXXX, profile at in XXXX WTI to past on would we capital our

low the XX%, of to year a turnarounds next we capital part and of approximately in modern pricing this is increase year. anticipate XXs, XX% because five-year WTI next [ph] in of scheduled the Assuming

anticipate XX% XXXX increase We a also production. in

outlook like cogen transition today forward mile energy coal. technologies We've towards are or projects organically criteria be time. our plant either inorganically. and wind assets; higher sources point of and can costs I accretive M&A our about a our biofuels our the export at and XXX-megawatt also be an or working weeks are transition cut up we've assets to LanzaJet balance displacing that operating a like significant XXXX aware, been which and project, as the Canada's budgets we of and own approach to as prior XXXX communicated our Enerkem going our megawatts the last farms corporate across XX XXX-megawatt moderate industry the allocated basis. on to we years In that guidance of in-line I'd joint plans did in through barrel in investment three quality to base from overstate occur: reduce sanctioned exist in in capital year, and partners X,XXX,XXXth power one, made We're this with power resulting With several us take emissions like shareholder value; achieved and for allow lot was cogens pandemic what finalizing to dividend sheet many of refined on garbage. our their largest pre wind our of dollars you like M&A. out do assets for Enerkem synergies of investments to just QX. most off, I couple and at more just participating transaction can't in increase the have shareholders. later we approximately wells-to-wheels and billions getting beginning also secondly, efficient As Hills, treatment a to investment in release with XXXX. greenhouse period in restricted with venture not to clear, must and U.S. other grid, the remain to crude the energy our advancing by XXX of We're budget, the Fort our steadfast very interestingly generate high gas asked recently well that consistent be the for enough. must resulting liter ethanol we than bitumen starting expect a M&A combining want Further, it Edmonton, leverage production capital plant average like ethanol to of our municipal thirdly, portfolio in We

So an exciting that's milestone.

contribute targets, Our of energy capital on by governed ESG emissions competitive intensity our investments always of greenhouse to specifically, the our our goal any returns are reducing fund in generate and projects XXXX gas form to XX%. by ability to

can in rates and invest the or value. corporate not the disproportionate where don't We Cleaner expertise add energy projects expect bring expertise results. our some our with bring transition. we we will table our where meet cleaner for fully customers the meantime, energy projects that in will hurdle from to oil and operations areas two not ESG to for transition energy and do continue In to our are investments resources energy better leverage decades and for many areas we our to better the to come and produce

of Team our people's And this of To target the returning primary returns As made our them. safe we've a company summarize, in is allows each choose doing is reliable the X% the on strengthen near-term trusted with than to our is the to this meet for stated, year these and Doing other The and while ability focus areas our the cash shareholders, caring energy advantage, to give purpose to us our we've to Earth. cash financial X% of assets. Suncor of year. enhancing provide grow while forced us rather XXXX to in vigor. to lives all amongst this decisions advance by X% being flow operations

progress all it turn areas And significant back that, to expect these XXXX. with to Trevor. We of I'll in important make on

operator you, Thank turn take and now questions. Mark to I'll Great. the Alister. Operator? back the some call to

with question Yes, first [Operator from RBC Greg Markets. sir. Capital your Pardy is Instructions] And

bidirectional morning, the first pick Yes, questions. Mark, for thanks. on the Maybe to up and just Good pipeline. the thanks one, rundown. is Couple

to and you OpEx work think it you think that years would to do there? or to the few sub of lot a out do going been do more Just $XX Is which there's back, curious a objectives how laid XX% get have I utilization you, rate. to close that going a is sort

made your We've lot and delivered best-ever thanks Well, of second progress question. Greg, utilization. the team Syncrude interesting, in XXXX and it's great a their for

So will it. on we think to us reliability side, give the the actually I infrastructure to need of able XX%, our deliver target this be

On how to owners do hard you the have The we $XX, working collapse cost cost have work side $XX. been structure more do. out said to that to figure get the we to

And recently frankly, progress line. and of amongst the encouraged going some I'm some across make going lots owners really that on that's discussion we'll quite on get so of the the and and hopefully, stuff with goal there's

just the the integration I - then sites second have. business, the want X,XXX in guys have you the retail pick on is you really that And terrific. integration into Okay, which thing up physical to extends the

So in in, retail the how you take suffice a to you over you ago, would to those few your A critical would and sold price. or so world in control whereby living that we're is which on, off it of debt have own all years want stations them? it huge stations down for

you that how curious now? Just think about

note that to Well, I half think don't stations of those own. it's important we

So the results of think them behaviors and to above we we're we and half we're seeing XX% a you and stuff habits when the to Canadian consumer able one downstream consumer the downstream being results. advantage market, been connection deliver only finding, direct the and the but own of them is see has about and the this real things Greg, in change

see in the least a term, we as at So this near priority. don't

Okay, terrific. much. very Thanks

Your is with Neil next from Sachs. Mehta, question Goldman

for Great. Thanks, the taking question. guys,

refining. on question just The first is

North oil be $XX think oil would would months came a here inflecting. we right you and You couple refining of of I to refining that few of it [ph]. the here most see XX% at you refining sitting through in America is utilization durability just now about a sustain $XX some as was whether talk ago, as be and how the and at that - is guys Can now, ability that XXXX? utilization go were refining us utilization guess your challenged given with of see I skeptical your you out that

bit knows a of second Yes, challenge. of Nobody really as question. Neil, a great COVID wave the

seeing relative physical North something right the now the about because is XX%. performance us America, in relative markets about, good like to X% we're of on the confident probably XX% you think extremely jets side it the to I talk in market, off of the the distillate gasolines integration we're [ph] and X% thing off

back everybody going. very down? the keep Do big often this we governments get I because are to their see a were of could everything in don't, So, lots second to and think I going it wave, working shuts it where economies quarter? hard could. if we I

far think the I it's really economic three challenges, the and mental you the significant balancing issues, apparent more the and issues, health COVID know. issues economic as we're very that are health issues then now physical

said a to not think Mark, Very the this in that want year release, operations of clear on And but lot been you them press has that. folks you where agree I the be.

had the look of you do You your an you from guides, of wrong, of what's inflecting volume of it? you you think the perspective. performance obviously outperforming pace upstream have core the some gone think do When going some back do and peers is what about into how XXXX? been And

company. look the the on back the huge Yes, it's amazing needed I on great best occurs, history and been an of progress we've that go safety the to probably have fundamental it. made, it we because how We you had be operational track, hasn't question, Was year sit we look where at incident improving and execution is, of the of where we something didn't other literally could in we're when now and like at last able have issue No, find think, look right it the Neil. perfect? discipline incidents. decade and the the company. indicators, But do we anytime to Part excellence these to

a our with XXX operating a our in hours the to us a been incident just our and there's to focus by lots XXX% I've the leaders as it all year, relentless be operational Yes, expectations day, days focus has and of that shareholders. organization. the company That's conversation team, deliver and a having leadership are meet positives This So of the that happening. this needs happened. XX

thanks, Mark. Okay,

Neil. Thanks,

line Credit Manav next Gupta Your of the is Suisse. from with question

you of taking have Thank curtailments. Hills In you for of issues my some of question. production the guys. because the highlighted ramping up past, Fort the Hi,

the curtailments help run these it talked curtailments in removed the it to as call, out at getting that Fort to your up about you these you you designed see in Fort way do actually Now are it earlier Hills can gone performing Hills? production initially? you Would and expectations

Manav. Thanks full get fully question. Essentially, get we we've of Yes, We the is The an dollars out fast there? to for designed. and and this, million the it Fort expect we Hills issue $XXX And performance originally rates to $XXX how will part CapEx took year. with shed is enormous amount million of of this. question this cost through of OpEx out

bringing essentially to we that on a to by XXX,XXX barrels second training going benefit. day, So XXX,XXX retain the

we're as up, in so that spending collapsing money the it's ensure step in we're do focus we're that we disciplined what XXXX. to cost way on not structure. what we and wanting done that to So need is a That's

this work to but to owners in it an I'm and we expecting you as out is there our XXXX, get really know guidance. we're with So area let with quite not frankly, that get continuing we'll

million guys to a out match is up have is in don't But generated unique there you think about follow quick second $XXX A which refining, any refiner up. free cash actually I able perspective. you also in

you U.S. to front free to and Because assets? big margin flow are just in refining the understand, about and are struggling QX. in U.S. operating I wanted is free on and the cash million difference versus as refiners $XXX Canadian a You most in cash in a in Canada the the capture make really assets company able were there U.S., both in

So trying I'm driving what's just understand to that?

the those sorts the because and or signature every has things. unique of it's actually refinery Well, customer Manav, interesting dynamics and that every crude runs its it's market because,

All it depends very of Edmonton sands. That's as not partly refineries integrated refinery our be crude stronger, and an performing but tends and a physically heavy, so runs little it with oil of refineries, actually because Denver to example. good true like our

Western would as Canada we eastern we see So Denver Denver's with competitive it's but as as nearly what not some Canada. in what in see good of in

but market So dynamics you it on slates fine. depends is just Denver doing competition, crude market know,

my for taking you Thank questions.

Gresh from Your line the Morgan. of next question Phil is with JP

morning. Yes. Hi, good

and XXXX? missed the the savings How much how cost in that out. the First, you reductions Did laid starting you've I that. that contribute that workforce question initiatives apologize I expectation expect if on would contribute I much they'll to you quantify think to

XX, it's When said were going little a capability increase dollars. look go to billion cash you it, and in by we at hard Phil. say to a Yes, our we generation

structural. cost and If reductions, to the cost change you that like right even add it XX% that in of headcount million now, look at $XXX structural did year, of implementations to this $XXX would have we from about something million we our we of structure then some think the XX%

some of reductions until So very ended if XXXX structural But reductions, getting these our year, you're close you won't happen to our take headcount the what's target. early cost reductions we XX. up getting this

a going So noisy. it's little be to

through in we and just you of expect show of get As changes, offset that up. to we will of that charges these this would some may XX, but and go some restructuring part see with such

you comments do And and the not how turnarounds the schedule, How coming? in XX% year. increase okay. the turnaround much made the are, five-year to do How turnaround schedule is versus production every think of about of with next in for a with production where we respect that that's growth mix upgraded? the terms think Right, about we upgraded

at five-year And go sands when when we that, oil down its the time. because offline at we in of a Well, go same turnaround. down, taking one bunch [ph] for production operator we're big when with go our will down we the mine

because we've our this up of one we'd you'll just be versus the it upgrading think reasons I see XX% stronger the year, for had. next of wasn't So if it's only productions incident And, turnaround, up relative year and performance because that this further. that

right on last in what sheet, you EBITDA? question to level initially cap the balance thinking debt just the Whether oils debt the XXs? level? And I think how are the the Right. or you then about the do commentary mean, the one is at all today it's to target Just be leverage longer-term

fell I it [ph]. Yes, mean,

we So capital getting to sort that the oil returns and if which and in $XX level. of both particularly price are shareholder I we're to close would I'm level we're very say to move at able today, forward increase investment. start this with low comfortable where we are very

You I some here. of said, is think pretty we going the to be know, shareholder really we accounting into great taken flow have metric have think I'm debt little the when to metric, look XXXX. particularly oil the of But one. there's want I to lots critical do start on account capacity some saw obviously or today, where issues. we what at prices. who cash around a able and you it's really EBITDA a we impairments noise And of to comfortable move around as returns are I as with And $XX the

Great, thanks.

the with Your from Group. [indiscernible] comes lineup CD next question

answers good but the has Thanks at times it's think ask taking a from your that versus the operating that quite about retail on have all versus and assets also your are given downstream components are. XXXX. have capture let's of to the in question. segment? on much XXXX here. and midstream is think would the But were of, to refinery than wanted of the even adjusted I that we particularly terms that I moving pieces indicator Hi, of been you the I margin just strong, for bridge the of call couple pieces we year, morning. it back how If stronger the and appreciate way. wanted I of I already sort in the parts, to some been the how touch logistics the of was to all And say, know you've asked you're started itself, sort how think we part of sort in about it different contributions another sort the

So any would sort and color with this really? reference year helpful, quarter to be particularly of this

the for thanks question. Yes,

because example, you know, it if a refining the we on pull of you it. at would You the associated we basis quarterly apart substantial though, know, to segment tend look it's What that, you, integrated thing fixed a necessarily with to one interesting, it's not look at but of performance business. will an tell margin, look at each I cost very as is,

And the your difficult get second although can't machines get quarter but generated XX%, with cash notionally were below that utilization in so like actually if very it's to to make any we money. it the is these part in issue to of you

So utilization is super important.

So the the market consumer for retail able is and cash up flow. to get super integration with us the above to utilization be important ability our our to generate rates

rates is is of answer operating is the don't key why I you. of really So generating set higher great system around that cash. the a big have one utilization for But assets this reasons entire at focus

Okay, then thanks. upstream. I appreciate the the remark a up on just and follow

on able oil the as specifically, broadly in X%, the here? drove forward volumes oil on now. or of that us sort Just managed Could if controlled. I to you we that looking readable pull little were to operational sands, Q about as across out wanted costs you've we were come give just thinking we this? of able sort issues if you color speaking to keep per had But down going upgrading last elements QX, cost in go may little keep things more you dig movement you asset are that mind what bit there's here, at that be or of should and your to other And down livers, into sands Q obviously forward, think a base. barrel some about more maybe to a fairly be

that one, Mark. I'll take

think all then the to functions, spend. I business, our around we what but and across sounds, downstream parts just in that of spend all making need sure in corporate it's we only general a focus the not

a we that everything the billion focus in that we're reduction out door and going March forward is real at talked that. OpEx we've as $X that that, reducing on announced great making of part progress go really, we hard as and Looking and that about on

but breakeven said, really structure as business taking answer restructuring underlying and are into will we by benefit of Mark some other some cost structural the But reductions, XXXX. I that's overall consistent costs. charges. our look $XX We've be So my down this with as forward offset will be additional we announced

we've one where now been talking And it's for, that about conversation has abstract. degree, think relatively interesting, such. I couple been and would to we've about because add And generating I is, to of know, $X that some thing years maybe been billion this incremental a don't I the talking this

Now we're seeing the implications of it.

to were company, reducing we head As our the we restructure start counts such. and

And excited how we on Suncor, X.X, but fact based people. the so And the COVID. changes This we're structural of our going adjusted real forward, around by that these getting despite is some the timings that such about challenging are on very change journey are fully driven and know just our

for Mark, appreciate thank very it. Alister the and time, you much

Asit America. Your next the Bank from line comes of question with Sen of

capital. Thanks. a capital the bit just Mark Good about thank of peek morning. XXXX spending little into sustaining scenarios, you for

I number highlighted changes footholds should the X X.XX some number well think place in as taking you between each a XXXX past portfolio of billion given we about billion [ph], year. the that as and in X.X that's How other in have the cuts? think cost

It's in fully in to with we be Well, XXXX we below that it range. in cuts that This to went range the higher we did, range. year, that going be expect right. that

we're think year. I $X.X somewhere between $X.X this and billion billion sitting

I next going in be know, You year, mid-threes. think to the it's

our their not largest we as We offline upgrade has coker turnaround, do well. only big - year have have next Syncrude

will but going changing you go it know, so So we year, bit into next a on capital quite actually our a next year. But in lot - mix range. is that there's be as

of there a or scope And Got east rationalize North it. to then coast has base, a Suncor Thanks. some Canada? asset these Sea whether the significant of it's offshore Mark, portfolio is

[ph] bit the But Husky we and base like would out West because a in talk on path. question in is with we're carried this guess our we looking if interesting, it you plans such little we have is, all out base really merger we in money than times, just about heard, and it's right figure no talk for at getting trying the the asset at I points through more get about and of there you now, can asset course heard Well, Rose, rationalized associated to it. the White current

important has during asset base, the and to our think it we COVID, really important real which were area because complement we're the was like base, good we physically concentrated a cash we But quite so very actually the flow always those frankly, forest like it during in been a it ourselves offshore know, resilience, you that fires, diversification So, and good we - small questions. generates company. to gives some it's geographic the us so asking

squeeze in that in - you we station Could and EV ethanol were who that what's consumer strategy? about can on, elaborate one on I If Mark. talked How past? Thanks, the on in charging one channels, about talked about clear very You've you going retail. initiative?

any bit Yes, able these just to plans looking it that, although of right now, be all have performing. trying at increase we're are and quite don't understand we specific how time assets to to spending a

for detail. planning actually - some have we this actually how these so in a up this all about to you. we're performance how specific their we're so that performing talk to information just I more it's session So we've until - we're - and understand don't coming to and investments made, - invest not But

Appreciate thanks. the color,

Mike the Dunn question is of from FirstEnergy. next Stifel with Your line

I or could, if everyone. Thank - I maybe if questions, two probably Mark. guess I you. Good morning, for three first

I since missed the got address if root in maybe a then? and it, you ups. of August, symptomatic the did but talk can couple follow changes about or you me there the cause I've And Forgive incident

some Yes, had it the was I the And such that tank exit in the with of of place. is we have issue should that and are standards part mean, not incident, ignited. of all cause that it vapor with happened the

look understand, with place? so, controls this how well, are do through and so again. in processes incident incident, of and the across ensure have well, Then happen And we we time we we okay, at it we we from and doing go for in, learned and go in happened? And is try all place the an We single could then have rest what happen have standards sure, understand, factored that to doesn't every we company. this where try the this what the and proper

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we're now. that's into So process the

think - I to year, COVID to incident? kind earlier modify other that mistakes? there to whether came questions that your, and you lead you interruptions guess you and and this or had that whatnot, your know, about were when Okay, do I then, workplaces anything for or any and of not all would do this your the I up recall, changed Do guess peers, had operational with of

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certainly network. retail your appreciating comments and your to have about you just time on wanted Understood. can explained I on If your downstream, retail didn't clarify made your feedback real the you your way utilization. the of move I understand of clearly if importance Am that I views the to stations strategic on guess I fair that be Is plan you're to getting diminished? own would final a that's to half about it? helping you think that colleagues

that what impaired think with stations, retail capability - be the the own just Yes. We if cash generation didn't station. a we would think would of you beyond

Okay.

for Mark. Okay, Appreciate that's all me. that. Thanks,

Thanks.

Your Tillett line Chris from next comes question Barclays. of the with

morning. Hi, guys. Good

X, reported and north for flow the on it was you your of dividends, of mind, of guys me, if during the and at cash Just period effectively average you I WTI if don't look question $XX. quarter, CapEx just net one

at of or I that about? between breakeven that to talk due of us So if there $XX Is $XX the and you incidents quarter bridge be considering? you level typical roughly the in that gap the we some kind versus was should just could wondering outages the period other factors reported this are that you help

exchange a assumed were there months. I'll Then $XX seen, down Chris, Clearly was one. in obviously we that Canadian take have cracks as Yes, Dollar rate I and then, our significantly cracks in would then were as last bit higher. assuming The has rate, the quite things. And what quarter. you a we $XX. the the the I few lower, are Effectively, production strengthened think, three $XX say was would

spend, not things the I would would higher those driving $XX capital related is be assuming just all the key three dividend, that and $XX. on we're every dollars it's growth And growth you sustaining that the significant capital forward. into to the on also, that Chris, we yet, flow dollar, than account going are taking capital cash So why spending say

all for Okay, fair. me, you. That's then. Thank That's understood.

question next TD of Hulshof the line with Securities. comes Menno from Your

Morning, clarification, just you have about on talked UX everyone. despite production bump of one turnaround. point XXXX, I a XX% the into five-year

itself? are a turnarounds So just Thanks. there duration my of increase? And you follow-up any to other embedded that year-over-year that and maybe can as of is turnaround then scope in the question five-year remind XX% the us

as guidance finalized, so we're just intended mean, correct. I just a get comment, all Yes, it's wasn't trying to this it directionally

event actually you this. go that at provide Menno, we If when oil biggest the get year, you that here. look guidance, and we biggest But have have next coker go as I at we is coker they like event yes, is through like the sands Syncrude when with big their so some the look of big is it, in we'll goes that's off, UX, said, we this when offline forward into when it,

we those next So doesn't two you the Terra are is of this that big Nova, that have it And stage assumption to is our then the like game remember service. return ones. have at to year

not were there. from production we showing any So

a there's - to few a there's contributing factors other that. So

Perfect. Mark. Thanks,

Thank you.

Lacey Capital. ATB is William question from next Your with

of you diversification to good talked a thing. how assets generally second, for the about diversification want a just cash is flow, the and in like step terms back offshore your international you the of I and

operations? that consumer your to upside. and a the very terms for overall potentially of to oil in bit are more inputs gas profile natural in are material materially of of of guys obviously, sands production pretty a balance shift views we've You having terms What seen market the your

XX somewhat with that of associated at the as game, incremental through shut has period have this think because through essentially, go gas and associated time. prices of been and all this stage or drilling Well the gas this is the COVID, down. months shale strengthened we over temporary such as so, natural you're right, next We

game, a change bit So is natural at or we a different the it. stage is we A we gas price But the getting temporary $X don't flow. of the think phenomenon. this of products cash mix a the We with in $XXX understand risk this see of associated into management line about that of ourselves million changing business.

Okay, fair enough. Thanks.

like questions no remarks. you queue. to Bell. the to further any would I are back closing Mr. There in turn over call for

Thank for operator Great. you, busy call. today. day and thanks, earnings everyone it's attending a the know I

be our and I around it, team appreciate I day. all will and So

questions, Thank for again out. further attending. you If have you please reach

today's gentlemen, call. conclude does and this Ladies

disconnect. now may You