Suncor Energy (SU) 28 Oct 212021 Q3 Earnings call transcript

And thank you for standing by. Welcome to the Suncor Energy third quarter 2021 financial results conference call. At this time all participants are in a listen-only mode. After the speaker’s presentation, there will be a question-and-answer session. Please be advised that today's conference may be recorded [ Operator's Instructions] If you require any further assistance, [Operator Instructions]. to Bell, conference Relations. Vice like speaker to now Trevor today, President would hand over the your I of Investor go ahead. Please

quarter note Chief in results from and Form. referred factors website, quarter assumptions Executive on risk Thank to our various not and The described Alister as Information third this good financial to actual release, are Annual And Financial SEDAR of are Officer, comments comments are earnings both prescribed well as Officer. measures the because contain these Chief suncor.com. Certain third information. Please our morning President you, earnings Canadian that materially me by today's available call. expected in may Little, EDGAR morning. our and Mark differ Cowan are GAAP. results With that operator. Suncor's, Welcome forward-looking

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

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

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

including results more This on mark debt balance our morning X%. completing you in And gains. the annualized meeting return areas. the Thanks, dividends level And results $XX of from shareholder we set X% made the maintenance February. quarter, over operations excellence, in billion history with that the Company's tax X for have our allocating than three net are commitments. of funds reduction. delivered of for capital third months to operations, the significant short, year, Company's and exceeding progress, Reviewing the earlier since $X of also year-end shareholders buybacks third reduced forms downstream operations, we Suncor's Year-to-date billion the net bought million refund cash X.X returns, everyone. quarter is our increased Suncor Great. or been we of funds billion and to by on while $X.X joining Operational significant QX key funds us. performance earlier received this quarter. remain produced debt billion from from our XXXX our and of $X the this of returned from We debt most over deliver XX% on delivered Trevor. and in has to good in and year shares FIFO nearly In third initiation expectations. thank for Company's program's line in budget. by we its The the downstream our approximately which returned back history. target best over The levels included commitments

by expecting by of given target Our by plan, confidence our share, February X% we're in year-end, X% buyback the our operations, are net increase favorable our we back and the XXXX to macro the near which doubling be to our shareholder to us levels. returns XXXX XXXX. annually the to $X.XX range backdrop. the dividends this further while pace the All a current debt in in of top Increase end per to allows executing by

production in of XX% of third per was operations, utilization turnaround. Turning partially maintenance barrels of to production the situ. planned This XXX,XXX QX by In the day for the Firebag. XXX,XXX reflects barrels Oil delivered operating in quarter. Upstream X-year per at spite planned mitigated performance. Sand's day, completing

quarter end extremely for XX% achieved quarter progressing At per of cash Syncrude guidance. utilization of of costs per our end operating barrel. production cash costs operating year-to-date $XX of XXX,XXX barrel barrels of well bottom towards at cash full-year operating the costs the and with per a $XX Looking total Canadian, we're the a $XX of the day towards achieve target operating barrel Syncrude, annual operatorship a synergies first of in million annual million the $XXX the cash we operatorship achieving on assumed the months synergies of to in cost contribute XXXX. in communicated These will per of synergies September by Syncrude. critical X at the XXth, milestone and end previously barrel XXX

a day of X operation. train production barrels reflects Hills Fort XX,XXX per

We December we'll by significant and on anticipate plan operating result, intermittently and mode. have in stated at as to November a removal both before, what right slope ensure seamless stability We're achieving full year-end. full overburden a we with progress made rates trains on transition rates have and full and to

an with per E&P operations, XXXX of barrels Our production. QX. day per In day production expectation in was the barrel cash an QX of for is operating incremental from cost increase barrels per mid-XXs our XX,XXX XX,XXX

better natural to to funds further Quarter third strategic comparable for an supply sales. quarter. is and cargo the cash our and and billion the slightly XXX% Average result, Golden associated XXXX with logistics with from on is some completed all and rate, offset with Eagle XXnd take as that rate recovery with XXXX, trading the our assets receipt from headline October with In line of headwinds well-positioned of of reflects second margins, funds were And quarter the run the $X a utilization funds maintenance billion in advantage from short, operations. stronger, million and and the U.S. full-year at quarter XXX at suite The was higher. a XX% also In the gas this $XXX XXXX there through our were were XXXX in operations refineries downstream. differentials you from were improvements our in the million, recall considerable cracking X% to completed Canadian The sale competitive advantage. nearly of prices dollar but barrel operations of build U.S. approximately Compared downstream, headwinds. narrower. funds inventory demand that run heavy to will and X.X significant with investments our while we able the we Third significant refineries that However, in operated in operations timing we're from of the $X X.X of very to was to

investments a resilient more to Investor to free make and made initiatives, we've incremental stronger continue and than the our that's As discussed Day, before. billion business ever X achieve are of funds flow during building

to As quarter with incremental year, across and nearly funds margins. this third in one delivered at of or per plans, all of on Despite our recover, billion Hills completing base demand back from Reflecting we operations, higher share. train. expect we highest SIM activity $X.XX of operating capture to X the the Fort refineries and continues card maintenance history the second

in Our over go to improvement through and our XXXX to to at hand assets quarter, fourth us rates positions flow I'll continue highlights. now Alister which financial it into significant operate free funds strong to generation and the for our beyond.

Thanks, Mark. everyone. Good morning,

billion For shareholders plan million continue We in $XXX shareholder returns repurchases. dividends form of to third $XXX and the to we the quarter, debt. over and million share exceed $X reduce returned in our in to increase

in our to average more that's shares, at than Q buyback amounted $XX During million of per share. XX% XX quarter the an

to by delivered funds the addition $X In of of also X%, $X over billion X-month approximately quarter. have our annualized from during QX. billion debt of return balance we $X.X that and reduced net Sands Oil the billion operations in cost came

anticipated XXXX, has to been however, at quarter. were Firebag, realizations the had during were is to by current much well postpaid royalty during be We post which offset the price to these quarter, the partly achieved especially price as middle Although change of sooner. higher higher payout turned the

except all to these our Fort the plus just assets charges. clarify, now are cash may the reflect So Hills, flow post-payout assets in fully from royalty

$XX sitting very Mark at with to continue all-times per barrel costs. operations, gas natural trend cash mentioned, year-to-date well As our QX, operating despite increasing costs

of costs, over higher-power operations has higher our offset You can see elsewhere half -- costs including costs, added third our from but gas been in $X quarter, business, disclosures, the to in nearly over just natural how the through revenue. operating this all-times

have for $XXX sensitivity our gas We impact operations from to every funds updated CS$X natural million reflecting

sensitivity cost. net generated expect This additional of flow the power barrel, These from capital gigajoule inventory duty and come free gas does of per natural EP funds which model correlated as $XXX flow, million fourth to mitigate an approximately The price per segment funds include which portion $XX an build, a realizations $XXX integrated in B, schedules, of lifting expenditures. Canadian quarter. revenue of we million change through with of includes delivering results update the and operations reflects ACO. to is into funds n

trading the As Despite XXXX, normal Mark like and direct to across Canada driver the stream’s a and to same assets. the is noted, recorded demand channels But towards context investments environment. If down we is results QX, product strong average was would Suncor I strategic versus down less our QX third remained history. than sales This considerable margins, relatively QX of demand. results QX a 's supply, I best performance results period XXXX, the these in in similar look in of XXXX. higher at the nearly business costing logistics put X%.

continue with third our XXXX leases. to Suncor's Ending trend demand capturing outperform this net into the expect [Indiscernible] continuing higher is includes and capital industry. debt and billion, margins quarter, the to which $XX.X We higher

levels. of in stands October, similar debt Golden XXXX -- received proceeds balance to the the sale end With million Eagle U.S. XXX approximately net year at $XXX billion CS$XX.X

relates taxes the range course of only increase change business for does our slightly. increasing to to cash guidance, it which commodity to our prices, As enrolled our environment

we Investor the the outstanding on look back net With XX% outlined pass float, we in that, or X% Day, of for on current the of of way, X planned of the said and target XXXX, ahead completion buyback are over expect years. our I program we another track as buyback the our to February achieving the at purchase to remainder Lastly, approximately of Mark. our shares. By year, to On performance I'll you the both buybacks. XX% debt X-year the or

Further, strong really delivering resolute and fort cash and X capturing free ramping billion annual long-term at in Thanks, our Alister. planned. up of break driving With detailed confident at even rates Investor assets and are Hills business as the Syncrude we synergies I'm our initiatives we flow downstream our outlook. down by operating Day. our in funds results, expected near

of commodity of our track both flow annual do are business. cost we funds on through I In margin the acknowledge that and of impact is deliver Although incremental impacting to $XXX higher prices side XXXX, enhancements. million revenue largely

our stock in trading and pipeline. interconnecting annual on by percentage Meanwhile, end at of For reduce top Edmonton range. reclamation expecting the Company billion are highest and of to And year. history the the spends, the of net lower back almost target are we our this debt debottlenecks end XXXX by buy of while the track to example, optimizations, the be also Firebag $X

savings via an significant of generate to margin and Next annual expect $XXX and additional improved productivity an through we million year further enhancements, flow. cost synergies funds

lower be capital, Investor our $X million we to sealing Day. billion than XXX expect Additionally, at discussed the we on

funds program, of Xth buyback to we're and today, asset this advantage in of our our per in dividend base confidence XXXX will debt standing into the upon As earlier, the its taking I and put that given dividend date. with model, the shares. deliver the strong integrated execution free approximately increased This the of share increased December on Suncor similar across buyback X% to is share. This expiring set generation our on board back the mentioned Xth, per February the to next at levels performance number The outstanding from flow plan, program the level. February to of a and payment and payable A confidence in dividends accelerate and purchased our shares further buyback it We reflects to commodity new current the dividend XX XXXX. Even had the quarterly increase renew achieving cents The the XXth, at current be on program lower pace XX date a shares fully strong share by dividend board significant at of current cents to has increase the to XXXX. planning targets. has and anticipate be of X% track expect will continuation program a net prices. than perspective, To our debt also of continuing to achieving increase the outstanding up X% XXXX. buyback

XX% However, with a a and resilient even. higher lower production, downstream, break

the Our value execution model into stronger strategy well than optimization ever the is today before. that maximizes we integrated And this of model. from are now

to more plan for turn and long-term Suncor. With confident As shareholders forward, back a that, you. in our I'm ensure for Trevor, stronger our to look and value resilient future I'll it I

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

Please As we a by compile reminder, moment. roster, [Operator's Instruction]. the stand while Q&A one

Please proceed. of question is Sachs. Goldman Neil Our first from Mehta

strategy. What the now today. Can would the room Good yield. increased congratulations changed current -- constructive team see announcement buyback the you yield end and morning do bends up if from price about what about ability move to capital a that what about CAGR makes towards you talk we at lower or the commodity it environments, level, XX% still a X% on But talking returns yield? just the at talk is capital can to and we top Mark of it execute dip certainly the about return you dividend sense. of here you you're think oil to to this And which that again, in executing X% price

Thanks we there that X interesting were thought really it, Neal, looked increase. setting looked dividend It's at I because about this it. appreciate we when at, when factors we

program you've that on reliable the that progress operations and maintenance First in Hills and Fort of there. up ramp all, the safe the we're or confidence and executing in seen making

is Secondly, we do. that on the business back and expected delivering to the flow cash that Downstream

We time of haven't seen given that the for impact some COVID.

the had significant flow cash this than despite of that being accelerated. providing cash going made in the comments you see forward. headwind it, it's all look finally, that delivering and Execution cash when it And of about significant other I downstream the our is highlighted. stable flow and can billion And allocation the funds investments our I operations. So, from you of $X

From top we about Alister the we So, before, now working of our target. you've the end the in debt seen we're to share it share we're of got get XXXX was on to this share said buybacks. end to year. buybacks, what buybacks our by When the actually talking time XXXX working the

So, felt all accelerated well. that and of we allocation is of it appropriate to the cash the And being capital dividends all do in was in areas. as

would fact, the of that by in consistent XXXX. So, this this deliver And what we CAGR is we is XX% XX% outlined. we fully with said

it's share and buybacks. So, just it's not inconsistent, just like it debt accelerated, repayments is on

in a talk then that Mark, bans of well-priced even the can And lower price about and commodity that a should out? durability about you we how little if plays strategy bit think environment this

around, we Yes, at look thanks Neil. at mean you so so the when we of does durability that this Well, back then $XX looked the talked at went and It's -- what given at? it, And oil this the $XX, able the debt, of fact to much your one to the that and is challenges be restructure have flow you Company we've on don't buy of so debt the at such. made shares back progress cash the to and

this that So that tomorrow, our forward it's accelerated, buybacks that to continue still debt if push sustainable. to it's given the all our still fact so we went generate through sustainable. share We flow very can on is cash and free we $XX view we and

delivered look The that done, at been year, this of we $XXX million other million. has with just just if we've associated you $X we so piece the it, said work billion were under $XXX our

then period by gives XXX versus cutting turned and associated dividends. it over a that approximately also of essentially with our with billion, similar outlined. $X.X cap us that million we we've the into year This over the this next We have time, amount capital

this view and in that we're seeing this buybacks. our I'll very even accelerated in actually we earning just increase, way So to depth deliver like be dividend in we're share environment,

Thank you.

to spending getting milestones on for perspective watching treats. back us but know you reset your to catalyst should the to Fort good Hills, an we the get help our Mark, confidence to it you the based ground can perspective sounds the Now comments, you've around And up progression. is that's big feeling the on from you're and time question been some I the like next can follow-up about story. there, you're give be

to working, they're seen they're Hills so that South an this phase, deal runs piece the that. test have the as to been it's lot progress. changed We've do significant this at both staging start with asset moving how Thanks able with associated in of The just and awful really manage up well. we team's ready we've interesting been Yeah. Neal, and really Fort with sorts in now and I the whole equipment able then because doing of we'll November stage so December. getting some It's has interesting to game. all it we've We're mentioned, there much whole and of dirt

to in see So, particularly nominations you'll start December.

on production be to year next You'll see we to norms on mid-XXs. cost get the target XXXX, remain before we in end also an increase and in shipping the to we asset into our as And pipelines ready we a full $XX expect as to ready it in that achieve bring track get year-end. barrel

guys. Thanks

Thank you.

Our of proceed. Markets. next question Please Capital Greg Pardy comes from RBC

morning very, echo what Good very strong I'd a and just Neil Thanks. said quarter.

good words, want we it you or year-end ahead myself now of for a the you would negate So, get year? reset into planning the or year consideration at you typical here, I and to for but as through adjustment other so, of normal into dividend go the don't that the the are cycle the marches In does next do go year-end. on dividend next would

Greg, your on Investor And Investor of Day, to that for up this XXXX, CAGR and guess we did short essentially through that Day. time now, this quarters kind our of when my thanks talked picking question. is I delivers the XX% accelerates the of about and answer Neil we some a three after

a did than more highlighted front-end loaded, felt dreamed. is is So lot loaded -- this that had be to -- we obviously but we and front-end this we going ever we

higher. is the Although, price commodity significantly

really where shareholder choose board we're share the and of our the debt as to said, accelerated. at repayment, regularly and up management All significantly decisions and further move been buybacks on and given the coming all The expecting in stuff, returns make things, at such look all that these progress next So, assess quarter. positioned. that significance would not any the we're of we're how in board

clearly. very that appreciate I Okay.

The the look that to sustaining the and moving mean, in parts in you cost general. now, XX And so other thing ended obviously break year at all I right thinking CapEx cover market need you been guess on the is, TI inflation, even just on. I oil costs a

moving all that how think dividend now? should price adjustment break-even and pieces other the the about we net With is

that and It's high-priced the break rates consuming to that and capital and that's all current FX else. including remain higher this is up around able we environment energy affordability. had actually substantially Yes, higher sustaining increase at than operating looked break-even a things like such, environment doing Obviously dividend our with a in actually Essentially question. $X our gas the But that's and even is billion. delivering world focus energy pay very reasons $XX And of and everybody great confident and so costs, the that and much. that's our commodity this Obviously, one prices, the to natural included challenge. very be we says along. everything this because in high is our and that. a But prices in was

but our decline we declined, see higher, will energy our this market So, don't entire if is issue environment. as breakeven that well. the Obviously, as an in breakeven

going the continuing capital forward. work you'll XXXX structure aspects plan. we're see of our on the can five-year So, lowered other us We accelerate to and we in our that changing confident Company of

our short-term, but in We the s $XX. up break-even it, for on than higher haven't sure, the given

Makes Thanks, sense. Okay. Mark.

Thanks.

you. Thank

proceed. JPMorgan. of Gresh Phil from comes question next Please Our

consider end cash and that you would morning. $XX target. bringing ideas? cash also commentary. compare and low do target just Is your keep flow, you a to Hey, you The Balance My shareholders. first follow-up $XX rather on contrast billion return target or long-term some excess with would good How question X to incremental that down something of the those hit of that that the maybe Sheet

track said, XXXX, look the to of Thanks. actually at XX that's end And we year, Any on we're X set that at we you achieve as top so way to recall as this in XX range an the acceleration. it, We XX of set Mark billion. targets. target

us at over next to But allocated also XXXX That that. down return that a we to dividend environment and continue and faster, flow of $XX we will be we XX% target, cash will you was drive after years. have we to comment get drive the continue that, reduction to CapEx shareholders a billion. can going that debt debt do But be whereby, commodity pretty make few and levels which will XX% those drive price will free cognizant also year. We ensuring consistent the we're if to and then $X to forward. to that saw set we buybacks, will next And their

Got it.

year the absolute for be Okay. on around we we your And environment like follow-up free at pressures off further changed May guess just higher-price think into costs based as then $XX there the operating a should million that that fair helpful. I would your any commentary, baseline everybody. because looking on leads from guidance some funds of to at as that be It it color these environment billion inflationary the would cost or be Company. total has opposed looking of for to OpEx just improvement acknowledging XX the the move some flow targets XXX forward is for probably looks be this to

these cost. in the XXX. the the revised -- show up complexities one gas of look you in to our But million and Alister revenue when of down impact it pieces at gas, It shows line sensitivity. OS&G that it's in of cost I this because costs one the as natural is it. revenue you is pointed two then mean, comes out, actually overall power the we when up actually OS&G we've change interesting $X structure, for was every changed the interesting It's $XXX at was at look natural it

operating really our at So, see look you you costs. don't unit it when

that, some of mitigated of it's the by impact see but revenue. You the

cost unit outlooks So, operating far our that to with and on deliver we've associated more staying focused we're costs the it. on had track

expect operating A lot you our side think a that's with of not with you're Anyway, revenue want is up are it of cause to on billion seeing in the of we this in And so $X the to and don't some some that. little impacts challenges. anything cost that lot the showed one the know that? of very associated year all side, challenge so, it's costs I coming that such. this, some movement just I have the add people did out the and taken Alister, cost seeing

think that an forward it's as focused realize of [Indiscernible] to and I available year, probably some it's to think others. look would in important to had through are this seeing working I we the we've advantage year, I obviously next see labor impacts couple just not I that position courage on things but issue. compared you’re that we're think that I we're across assume industry, -- some would is a

We workforce, have to sourced and providence. limits exposure in largely our service which

between and I increasing, kind significant to as General that we've of of TPI we're pretty X.X%. largely do around think labor costs seen in-source experiencing an extent because force. those, off agreed

costs. and So, work to as we in December, details our some give more to get guidance Endo's our planning of going we also you through we're

a but So, more in I increase to here. come on this, not costs think there's I'm expecting significant

some inflation by that We -- be offsetting these additional partially Mark reductions by cost that of the of about. talked and offsetting will some replacing

cost. on Just one one operating just the last

[Indiscernible]. just loss tailwind the came turnaround biggest that incremental the volumes in is that or was of would material it You more and be said an you Thank costs this you. obviously history. a impact that say there Would was that from on year

the done normalize don't we're huge said, of of Well, capital that a sustaining fairly, Part obviously, see you'll but have these some work physically with this is see you on of That the lot actually year-to-year on we -- volume sides that to because actually of work capital the side, coin on such doing has it and itself, sustaining actually it bunch impact we capital associated try turnaround swings it. in assets. now. is both a that the this from so in the on hard really and

capital say I than the volume So, would on it metrics on see year-to-year going side. see to you're you more it the would side

Okay. Thanks a lot.

you. Thank

comes Our Jensen World next proceed. Markets, question of CIBC from please

have Has to is, morning the been prod that questions. getting too I'd myself taking about. are Hills been ahead work as on and hopefully could to first around asked, -- any the changes for thought so my X just thanks but that efficiencies have forward, I debottlenecking the as Hi, there ramp of project as around plan has about changed debottlenecking forth. terms to capacity, just already that there once up is has timing that or during components And and in their as this mine fixes incremental of full any any of stability to able going Fort with them good quickly like optimization couple well I'm here gain? for A process you well respect not maybe there's around

the has because, Dennis. changed. It's with plan Thanks, this mine interesting Yes.

and since debottleneck was we it an I would That has getting it's mine at out team we this full really into really some full this to made where capacity. occasions, and say facility little degree, rates, getting that's a in some you delivering more we facility. up will the nameplate there so conditions and Then stated. And to a we we are be be there very opportunities and year see on we that how there this then There facility a little better little line how going now. -- we've been when for what of approach and We're that we've is in making looking understanding such. we the more and around obviously enormous models. to and said looking on to opportunity the more Through It's a Just a tremendous up, to the XX% the much always positive. and But complements progress ramped are opportunities aside, debottleneck like it capacity run really debottleneck hard the rates, We facility nameplate the circumstances that's we'll the around than of anytime amount issue of progress. XXXX, about because rich asset tremendous on are separate that opportunity an SPAC run quarter ore, done different the different that XX% more to so took math -- in On at you to had run out. could and coming first debottleneck that at we're ground, of with well to work few is, the set the the the and it they've paper, the always it and been of last getting planning believe the bit running put issue around or we've it. looks facility. about that a capital

what that's over to that of next the will expect forward. we going paying be year we find fully opportunity a So lot and attention we'll

gears, not -- that there as in to that, year, we'll months Great. it's to over when understand shifting just that year, quality just discuss here interconnect found the beyond Thanks. of operatorship. to you downtime interest I operated the a for assets already, as the to respect both further need given things plans it well of your what given that anything you to terms thus the stock feed as several And assets just this Have through you've you've specifically Syncrude? understand of and lot then it. able anything as the of well call stronger this base timing in the maybe improve first far? months X showcase that times utilization, we respect taken help mitigate being Is facility, the was operating about curious with into between with given Syncrude the now of you've

don't are you've higher outlined. is significant utilization stocks, the think what that driving opportunities. and increasing I more improving Dennis, profit Yeah. feed beyond anything brand we're business there more than and the Those and super seeing

same could have discussion I a think two get we we looking identify the about excited organization. separate trying deal, do to Can we're well, things this? drive one all the get assets, and opportunities at of then about we a is, and else? at the everything really Now how organizations essentially going we essentially had in things

pipeline This of the to the with and We've interconnecting and about its a and progress. first we really improve good there sets huge leverage how helping be think come the value. the we'll And the lever made maximize asset short-term, we're and that maximize Syncrude but It's some interconnecting So, go value asset. think year. we even the that our sometimes foundation drive up better to excited opportunities utilization the and able to a this very of it's interesting is operatorship, pipeline.

ahead as the Thank Great, of congrats utility I returns, you. time. target and the your on as appreciate goals caller well hitting

Dennis. Thanks,

you. Thank

Our Hulshof next Securities. Menno question comes TD proceed. Please of from

taking morning, everyone. Good for my question. thanks And

heavy So, refineries lots there's heavy in on that's differentials sounds driver gas impact natural higher It of refinery feedstock bid heavy. as there the particular. chatter light a key for out processing of widening oil costs over on prices of been up like

things. gas focusing whether but particular, process not lights gas or provide whether their So, of to impacting how margins are for downstream understand my your $XXX question natural on sorry for and that the higher downstream I'm core. or on not, see, is then you, decisions whether million side prices, that versus not And sensitivity for heaviest. the you did I In prices

it's just to natural an access this access natural that seeing because degree, region is actually volumes you're Their no to orders is Europe Essentially way area out constrained to prices entirety. gas. Menno, that they're large very think of the And in I storage where of storage. degree, paying has levels. some energy struggling magnitude that its a historical gas come commentary I would interesting higher below are say with because

it. narrower one we've we heavy. of out our about, XXX%. commentary, don't really third The we Canadian you've about my $X QX, X%, is on but seen and the also yeah, light talked talked one highest that dollar of natural up is than in up what that is I s pointed spreads gas kind of price by the in reasons history, challenges in delivering we seen And much the a that's downstream the fact, So, see but

We that than in the model is I and we Maybe much it can dynamic, wider, spent view or look actually widening model money So, narrow, this. absolute the against of that it so not. designed are in little Europe think bit -- a you North see beauty our more differential, within our extract don't is helps of weather America, the really higher, but prices whole really so. a this our is whether are model associated protect differentials and model with actually the us our there

Just we as sensitivity. it's of one we the modified talked about our on side, the reasons power

the OS&G, just we in the revenues. on but here Before offset were showing is you impact

well-positioned able may very we're North some really impact. that don't be factor, although see we significant as manage But So, a this. to have America, think to I in it

on Just ever of the know the you related business? it back consider would getting of the end model business a big the was into part back in day. a gas I though,

that out hedge enough it's not to to not have risk that or consideration? enough there's just price -- even is just a be Just sensitivity

you'll unconventional interesting lot to have see Yeah, actually model, Menno, that because very see a we folks, It's our I of that impacts. think although we

answer [Indiscernible] further will co-gen again When and it. continue that look a I'm our ever, and enough our know maybe Obviously, old consumer sorry big you and associated getting sensitivity to maybe natural of mean, you to circumstance. a would markets gas to don't never within be when the gas at the there's mitigated with the see, we. then positioning you I we're change all the time. I As you question to natural ask I'm

but that how investing we're increased to at prices this obviously, mitigate gas not the we we're manage is ever? that. game Maybe the time. at this we and focus would, is Would further doing power of further. And primary way stage Our to that natural

that, Thanks Okay. Mark. for

Thanks.

you. Thank

from question Manav Credit Please next comes Gupta proceed. Suisse. Our

guys. Hey,

switch wanted I little. So, to a gears

in supporting trying to So, just capture pitch-in? capex, kind firm I'm operators kind out -- it ahead bigger just where Canada government I of they but a in what from pretty the from You need of capture understand ahead it the with government proceeding, expect have negotiations support you and early, sequestration. basically do you would of carbon help Canada carbon the do of with are understand, move with come Is some And with kind move to program? it's and projects some you trying Is what to carbon this? pricing? to understand these if

large history Manav. about. excited the is Thanks, in industry industry peers. take this alignment And really fantastic realized unprecedented plan be to key as to zero being the we're it's the able lot to mean, and whole That an by get area we that the path quite points costs it, of we to industry moving Canada, chart within can you see And is an forward. Obviously, our is, Obviously, to we a emitter clear able alliance Yeah. amongst sequestration. but worked one We if of that I can this a been are as as XXXX. COX as an and Obviously, worked work net we there's capture that plan, the competitive. about drive industry the the keeping industry, on significantly. together, a in of to down we is carbon

provided for U.S. have years actually If by be sequestration Norway we and capital to that example, costs an and able deals both costs. actually operating the with operating do carbon X/X are first X/X with as and capital you XX In the the the government. QXX, the incentives to of look of

want we have our So, below course. we ensure We capital that to to weighted need cost investing competitive. afford of that's of be something average to can

federal great that the forward. government, provincial federal some not And of monetary, both forward? just government sorts is have move provincial can we we're looking The a of great and and both and the relationship to things. alignment we're get I a plan, to base have those path think thing we with working so, we so gets government to out and actually the the and force into try this access with what's And all it's and figure

side, cash even during the free that, in generating worse the here Thank were you pandemic. question refining refining for of you on

a you Now refining, of perspective, Is refining. free or stage? retail I can it a within to retail. refining, obviously, understand from parts, and So, if its at your to as is you to from you could look getting But help as its business look views you three retail lot its business if the understand to this actually business it And is, wanted the some us you cash are it's is grow? a refining. this divest at you want want on keep business your potentially your that logistics,

it's on Day. Manav, about actually our talked Investor we Yeah, this interesting because

is, you context fourth provide capability. add trading And I helps think it. I our that there's to material some So, in would good some actually that there that cash that else to and run were saw up is, to to network flow free disproportionately the capability our able utilizations we high was. nobody trading refineries, in leveraging last the deliver logistics our when year piece

within all that Day, operating in our we I in how part Investor an of much of delivered we've we North combination the important refining twice America think outlined. because nearest than that. as is about capability cash of our flow of talked this next competitor Retail

the brand X number country. the have in We

coast-to-coast network. the have We largest

direct with have the future. as to options leverage relationships energy that adding we customers about the we We can think

as important this an of see So, we part our model.

to And think back so, I that. just you refer would I

more see Anyway, invest business. and integrated the was stuff that's with we taken we've COVID. position the to part is went on very -- this people recognize team lot that the piece have and this are that's part with it. continued some a and we did Day. think we slides think in associated sold for and and we But when it. those the of we through can important off Investor an why the This it where we this just actually continued to out you Manav, have Suncor walk and where Our that's of of out we don't But right of helpful that's cash through we answer

the is was barrel that a very to My think be for XXXX moved completely upstream I out. I last and of It gives heavy important. you you so integral no. end agree. is, don't year here and It's of question should downstream. final No, access a business. placing the part turnaround it quick markets

expect in at look and downstream we both XXXX, think lower? upstream maintenance we upstream How As level downstream versus run XXXX? and be in to XXXX, do both at the do should of you

We what to and downstream is it. of has substantial have and have maintenance Firebug actually in the of going than turnaround lower maintenance associated have look off. lot but still had some Syncrude work upstream we sides within you turnaround we both a when at on, be the with year. It's lower turnaround interesting going still activity. house the activity And

have of piece Firebug. associated with We a big work

like think hits. XX,XXX impact was -- barrels. mind, something that a say in XX,XXX-barrel s Golden we I the about you Eagle, that's And keep

of and work. the a takes puts we're there's turnarounds So, but are platform, bunch executing across still lower,

this what questions. one of I to And some of is previous said earlier the

to flatten in have that. going out don't us swings so trying and about we capital huge sustaining optimize Just forward

so million -- as capital of Day, had. this we're that's overall, The year, that is we've ceiling. during less below XXXX we spending optimization beauty And it, we where $XXX talked about at. Investor the XX% as anyways are next we So growth phase highlighted, our than phase,

shareholders. So, to I this continue trying we're think returns very to so deliver we manage can our strong well to that

for questions. you my taking Thank

you. Thank

Barclays. Our next question Mateer comes from of Harry

one's this think I Alister, Thanks. you. for

debt paying for want cash a with capital cash indicates is high to concept go allocation XXXX, opposed we you you there which and is out, limit framework to often laid also the you've smells the One as debt the next and gross gross just year, to XXXX how net of of then for debt targets questions as get down have net versus presumably debt are doing reduction.

follow-up so prices couple that about XXs do quarter, as willingness at paying about are more not tenders, you're how Then waterfall did etc.? debt ow maybe think when holes, make thinking the quick spent to these pretty schedule, the do I the your look with LME such still in you third but a short-term debt. you curious that. of is, you So through of have the billion But

on a great there. right Harry. think that's question you're mean, I Yeah, I

is to reasonable. obviously billion but net grow our versus Now, billion we the cash in probably to don't gross debt want debt X X -- balance somewhere significantly,

we'll to events include some net emphasize -- in everybody thing. short-term leases that the that have do that in the talk or maturities, looking a billion we at I say $X go can we forward, but think got all to of don't liquidity we management I we're would which so total, we not Just data. at Companies debt as we longer-term about options about our yeah, when some is be debt, U.S. same debt pay of take we'll looking as them. We've

profile, But us debt taking may determine maturities the you shorter-term debt, and all data. will same time table. us increase are see issue just the options we're of at some on those You manage see longer-term as certainly the

Thanks it. Got much. very

you. Thank

Read comes Roger Our Fargo. proceed. of from next question Please Wells

morning. results. pre of to the decision the better the cut I the the on to the to reduction would I admit dividend congrats reinstate What at the back. quite thinking call. and level. We morning back the and reports way the a all the time was today But number good this of what's like thinking this Hey, come missing part had first of to bringing

but next didn't the you we the reasons really back. expect dividend year, ask, raise all of I One get way the we think

trying just here understand and how all you that to that confidence came together. level have I'm the So,

just concluded under the and instead, safe reinstating is really We've performed in in Company, it, when of significant in been keep global decision Yes. global this are Thanks, Really, to financially effect is a Company It's on we've you and strong, was, essentially, think we a year any operations. Company the most maintenance dividend focus go any our hey, the I key appreciate we in One history having if the is factors. you our Roger. four and the view looked Company. the back then and the were as that occasions out analysis, confidence look I reliable when in CAGR looked on through our the pandemic. dividend. But we there dramatic we several just market. Company needed to demand we is it. dividend at our the took

Fort Hills ramp is on up. track to

flows significant at recover seeing business demand, as the we providing and And look a it's little although so, stable you off the downstream really strong. cash looking consumer is look are bit, and future. And then to you the when

the the then we're two and saw piece the of despite quarter of the of or dollar downstream, to XXXX year it's saw and in XXX we is for third QX the line deliver so, the last XXXX, in flow, that history amount track billion higher such. and challenges pieces in the the similar third deliver on million the in our downstream other next funds that confidence Company our to in And best with what execution free another on delivering this And $X we and of year.

-- up targets paying on end end working by top our looking year, very well. going be of you to now X% look then the is debt, look last through really to down analyzer debt, we're and at buybacks we're, we -- looking one our you the when that's at went to working is And we're this, when Blade we're at So share the this about we're and of our our the XXXX on that talked to share debt back net shares buybacks XXXX of Day. buy debt at actually. Investor

up taking the so we advantage restructuring of as we've the view pace. high environment much So, such we're in our made at same was needed price keep the just dividends data progress on the commodity to

about but XXXX, So, and the on Investor on it's now for about line question. and the you're we share in between Day, buybacks XX% debt. dividend talked increase we're doing your of what dividend we increases with progress talked Thanks that the seeing making

south heavy of a is understand market, better should have, the as couple how down into about forward you it then that improvements issues crudes U.S, of or how of the Coast issues. then that some that line factors all. the of been of line lot just years the we follow-up at an any just A to differential a whether light an maybe the a how I But particular question. the it's question? and look pipeline if I face moving, pipeline next over Suncor others us transportation X, expectations the all There's affecting same flow Could the just does the we've think going market differentials in you haven't presume idea Can we issues some diff your of think crude faced and and give stuff with better West you expansion. obviously doesn't operational got about volumes cash

Yeah, Roger.

an differentials I actually I the QX, this think Predicting the surprising inventory these was build We've to some saw different We in there and happening degree, model. challenging. was all in lots in very right is that industry seen maintenance of to our bit goes that second-quarter the heart which found because such. a within markets. of

to really you well years. it in it so, at relative high then and And higher you And prepared you was X dollar, get saw look downstream much the Canadian price. seasonally my strong of narrower last with when performed gas depths the and remarks when into comments such,

for I lights heavies I think and in actually pointed that's whether as actually depths I demand lights, see around. markets Greg in several a driving in one factors North factor question out his there's about gas it think is. affecting that some are it and natural and significant America. don't

be of you're most think X OPEC going for with positive that's I You're better access on. line to then crude seeing side. increased heavy in the narrowing the coming on And desk, seeing on the from coming

upstream or an in we're depending is up and push the be takes downstream with where in is. way dramatic able to the designed there's it effect So, the to indifferent, don't we the for the depths on a other. The the or we issue to one us see fairly model. have dip integrated it, either cash pick It's

And much. really all so, it on we don't that focus

you. Thank Okay.

you. Thank

Thanks, Roger.

call turn Bell closing the Trevor to to remarks. like now would I for back

attending follow-up operator. operator. we're Thanks call. earnings of so if Great. your it's know all for Thank season, you, And you day again, I and appreciate I thanks around the everyone a any questions. part have busy support

Thank and you now you you. today's disconnect. Thank This for call. may participating concludes conference