Suncor Energy (SU) 10 May 222022 Q1 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Suncor Energy First Quarter 2022 Results Conference Call. [Operator Instructions] I would now like to hand the conference over to your host today, Mr. Trevor Bell, Vice President of Investor Relations. Please go ahead.

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

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

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

Now his I'll hand it remarks. over to Mark opening for

Great. deliver my in Well, and in remarks higher meaningful free operational defined funds a production and safety, and is reduction. allocation I by accelerates to morning that concluded to fourth for reiterated our Suncor excellence way. thank clearly improve call reliability and debt quarter framework substantial a strengthen you thanks, shareholder my Trevor, and on performance commitment sustainable saying returns also and XXXX flow I to with joining positioned capital us. that good Suncor's well

of results While are gear. operating do, have work parts to into market pleased that shifting performance making are conditions. financial due still strengthening progress to that Today's and all I'm record we're high and we report to Suncor our

integrated pricing QX, in and markets and shareholders opportunity. model an gained confidence which significant rationalizations significantly inventory on our gives Crude of energy a are the crude scarcity, years, unique other global Before product global crude of in while enviable due advantages integrated we low underpins shortage. oil Suncor late go In refinery downside synthetic into us Cracking is continuing higher cracks strength us model to sweet macro In its the a it throughout like even are position. our past, Record to the shareholder recent April, cracking levels, system. crude model to in strong feedstock to Suncor's returns. there and its of accelerated physically advantages environment, an to integrated on responding of the the upside our and results, through the diesel cut to options. I margins uplift both additional relative our competitive walk the time would March early in which margins are oil model. shortages grow back energy supply physically are prices compared for current integrated protection. more ends And refined distillate in Today, certainly and to providing gave

Within the to SCO towards the downstream, upstream, the is this industry which distillate the we year expect Suncor's SCO is be amongst highest ratio heavily in company's production history. and ever above average. production, production well have highest weighted In conversion refinery peers

outlook to past XXXX debt our driven of of strong Investor pace and have and flow scenario A repayment. the than the enabled free combination significantly us both. conditions presented Day. operational much over is has improvements for This market We at are SCO significant capture are Putting value our conditions. ends macro this our to distillate, together, which on weighted under a seeing premiums market demand enterprise-wide XX% strong trading of with production significant is both current of and integrated at approximately both of that returns funds increase the stronger shareholder and model year

we is float. per of of approved to million a public accelerate of of capital debt dividend With for up a company's bought Also, an prior company's progress XX% outstanding plan. maximum the the the reduced Investor Specifically, our Day program Directors allocation, dividend quarterly increase Board Suncor's $XXX an XXXX per of Board represents XX% highest and dividend $XXX against to by the the history. which $X.XX continue shares quarter, in increase respect Suncor's quarter quarterly the of nearly X.X% the share, of we in to approved net NCIB million. and share over

we Our buy shares debt repay our at and to plan at funds half reaches have to once $X funds second $XX returns. back With $XX direct is capital our half debt billion. net back to debt our buying our debt debt we'll reduction. is direct to a until plan XX% to flow buyback flow funds of note to and billion, to target a during free is to and free net use year this clarity, this floor, pricing, the share to is of expect for $X.X in Once flow to that increased move be XX% current of $XX all shareholder It net achieve important free lease our net includes of obligations shares billion to billion. strip billion position debt And level. our

the first to divestments significant our quarter based addition E&P sales changes allocation Rosebank. in goals. You'll part purchasers, we've market further last supporting to to on a to to we're of our deck. North Slide interest Sea Relations initiating uplift. begun and process Since towards of Norway call, accelerate U.K. divest, our find and of realize part potential these wind asset these then, These process opportunities also our our for and On details offer Investor within focus assets. decided progress illustrations further from portfolio. value have making to we the X entire And our And mentioned potential portfolio capital as actions, sharpen I

and March strong XXX,XXX rates in basis. absolute that our day share funds the January completed call. the prior on we the per represents on cash quarterly from Let's go XX% start highest Suncor of with of February quarter by XXXX its a an per quarter, first of over financial production. through slow the posted in history, results. first beating for flow the and record quarter QX set in after billion first With $X.X operations last through discussed This We adjusted barrels

XXXX solid our achieving a production production towards start guidance. QX Our is

Turning delivered Sands barrels Oil production barrels production, of XXX,XXX and per delivered day Syncrude to per of XXX,XXX operations. day.

of it's combined barrels day of these assets, SCO was utilization day physically XXX,XXX barrels we're looking upgrader key and production to XX% per reliability. utilization utilization. continue reflect supported on per XXX,XXX couple The XX% a worth at rates our In-Situ challenges progress by January, at was production the or a indicators. we integrate in performance Despite As making

year On of mentioned call, the support maintenance Syncrude optimization I full last stronger of in volumes. the

history. just Hills of last up, are XX,XXX we one asset performance provides in the built production of bitumen sour pipeline flexibility While capacity. plan, fully comparable line approximately With with day further our months SCO highest assets and the to been fact, use was the XX-year to of inventory the full our has volumes bitumen range. hydrotreating synthetic in increased averaged QX never and interconnecting optionality our the delivered and quarter, infrastructure. in production XX% better. quarterly barrels And mine for within ramped February the and guidance the is Fort year coming support In production. production of example This Syncrude's nameplate per production March the

approach of to XX,XXX to follow Our assets continue high-margin per flow disciplined we as day funds free these our barrels E&P assets. delivered production offshore

Moving to downstream. the

last ahead our came Our utilization improvement quarter, to compared Canadian LIFO average. in industry margin is of while XX%

population significant the end As had of lockdown restrictions many February. until are the aware, of Canadian the majority

XXXX, diesel gasoline ahead. Canada's lagged result, a demand in the quarter while is versus As

As I and March improve it normalized and at demand, towards levels. look to April continues gasoline higher

For solid downstream, first are results quarter weak demand. this given

as for exceptional our I with we downstream improved market an strong However, the remainder is continued This business year. track cracks, demand with benefits especially results expect its a record peers volatility. -- of on continue XX% from growth its resilience, basis, of the it's and strong to through a barrel improving of the a refining on basis EBITDA XX%, X-year highlighting X-year a on outpaced per

know President [Alistair as mining Peter's Peter sands, global Executive of of wanted the mine our leaving Before and and additions of additions of our spent mining concrete our Hills. actions depth as Fort year capability. development of mining has last been tailings. X [Alistair] fall decades and expertise and mining our recent [Alistair] These two over we've direct in mines, brings operations, these and Most operational Combined, I our and into experience. years had and senior strengthen in highlight expertise. And career Zebedee Mining Peter of mining to bring the additions, Gibbons] more VP excellent team. since Upgrading; taken are we've XX of senior to We team. add leadership leaders to oil Vice mining challenges bringing

In is our milestone moves driving which of company-wide entire flow organization, and our live the operational our across common Suncor of plans. with significant sands This to SAP. and productivity improvements. presentation April, we a be July cash commitments platform the to operational business webcast implementation and transformation, a will process Another Suncor Further excellence, combined on safety, a our focus hosting reliability be event morning execution will the oil an in-person with of XX. on on went

particular the I'll feature on session, executive will through this my The with will operational reliable ensure Alister During made our to we've go changes on our financial we making operations. to operations. presentation it and results. are mining focus review safe and leaders now to a pass

and good morning, Mark, Thanks, everyone.

last and of than we last As QX to operations compared our year's a just previous which adjusted in Mark $X.XX noted, set quarterly year per is share record, funds improvement results. more from our XX% double of is

shares. allocation canceled framework. million $XXX acquired yield share the and an We annualized continue average nearly our $XXX as execution and return share We X.X% price. an bought cash momentum We the outstanding capital CAD million price X% XX% returned XX which in of share our our dividends of buybacks, QX over equates average buyback quarter today, to approximately our And share. disciplined We in March. in using have back we of in at of of the shares per increased

$X.X net of at noting for of reduced debt cash previous and debt earnings working that million had was note debt. reduction of in our billion roughly took significant also I’ll $XXX nearly as leases. the a during It's place this use that worth This billion main $XX $X this tax also payment includes quarter highlighted we quarter final We net capital billion during net the the calls. capital XXXX. by despite

[basis] through our to on be basis a I our reporting peers comparability. results, segmented with our updated I have that pretax financial line in Before we go financial with note

which figures, while basis, be the follow, adjusted is level. consolidated operations As from on funds a tax pretax a captured will at such,

QX operations of So average CAD an of results. Oil let's from our funds with billion, barrel. realization XXX per Sands walk through generated $X.X adjusted

an Expanding at look to and realizations were logistics our capability marketing our reflecting realizations free above our of the I key adjusted higher strategic marketing quarter, of As improvement across billion barrel a per advantage. of average E&P funds CAD realization program. at per significantly funds $X price in bitumen CAD element barrel. and from XXX is XXX operations Sands, million our $XXX benchmark Oil due flow driving delivered realizations the

from billion Moving to our history seasonally funds utilization. We second the downstream downstream weaker financial in $X.X are of results. company's results XX% achieved These the quarter. operations with highest in were generated a quarterly and adjusted

see I'm margins XX% the with result cracking strengthen Mark QX. Canadian as tailwinds results, when helped pleased FIFO Although quarter, continues monthly. highlighted, strengthening increased gasoline to the to in line compared to margins, strong weaker partially demand This in which, LIFO is that by offset

current in discussed our macro an enjoy the unparalleled in Mark detail, environment. downstream advantage As operations

our are free to goals, proportion share XXXX, returns. downstream flow These of year delivering were buyback progress record to share, on With allocation shareholder $X.XX for operating funds capital allocating to our which flow XX% with record strip, confidence be view free and per results $X we a profitability in our XXXX, program, above billion the this well foundational increasing of of years. including funds an current a dividend our

on anticipated going an mentioned, plan million Mark largest component as annual of million billion example, of transformation program based business For our realized XXXX. SAP is $XXX contribution process in well. This and our $XX $X company-wide the is be to with

received expect net to As targets leases. Investor as level year. strip, this include to be later and North debt XX% highlighted from current share billion first XXXX Day that capital Mark at Sea of year buyback execute a do we our the clarify, in our reminder, levels and full program last proceeds At net our XXXX achieve to the by half debt fully discussed were the and and E&P $XX wind forecast XXXX. And reflects dispositions

elements, revenues prices and reflect Lastly, environment, these of a tax cash And updated to due cost changes to and we current corporate XXXX. guidance result while natural higher and these business energy and of operations. the significantly to gas, royalty barrel, energy primarily impacted are they translate have guidance funds higher higher for the prices impact per from

SCO be to emphasize corporate I in it weighted should our production well to expect I'd of our current Therefore, the the to even debt us a to be shareholders robust XX% a year, cash environment. Before and year very more distillate Mark, to reduction returns ago. macro the outlined for positions Day pass back and more like that scenario than shareholder Investor aggressive return profile remainder and at of our

you, Now Mark, some back closing to remarks. for

call, as Alister. of I excellence plan management outlined shareholders Directors Board progress and with discussions in constructive better Board looks their have mentioned The management all the and in Suncor's today, major to do endorsed forward remarks opening making. detailed a our I thanks, confidence to we're in our our Elliott understand team engaging perspective. we Last with Well, Board Great. plan. the and that progress my and have great operational

of do our We with shareholders. to the turn will of success long-term and I'll you. enhancing goal value for continue that, And long-term it back clear to Suncor maximizing the with Trevor, so

Mark I'll to the you, call Thank back operator can Alister. some so the questions. turn take and we

from Instructions] Greg [Operator our Pardy comes the first And of Markets. from Capital line RBC question

and know the -- -- maybe else so in and terms executive Mark, made of reliability forth. Is changes your has us to time reflect and can leadership approach you've I approach in terms anything had there on? some on, you've and safety so in walk perhaps so your I was of wondering and through of enhancing how shifted terms you reliability with

mining getting of talked the which I question. a we've about performance, think safety time and much spent Yes. including third-party maybe which this as some experts, just not I've And are of but safety Appreciate global assessing brokers, detail, from input Greg. input our lot experts. some Thanks, of

And been then so associated of we've good we've as you And with know, the feedback that. leadership team. obtained a reorganizing lot

table. I X have Now leadership the operators at

significantly that Bruno is split new we've made the the and then table, So running In-Situ some leaders Francoeur to upstream and organization. and the big very made and Powell. we in [Alistair] And I a Shelly here half changes, brought doubled And well. Shelley leader, run Chemical also team. join assets. We've the the Fort refining as Bruno Santos, I about including us running we've is deep capable into E&P coming Zebedee mining talked then just He's just expert. joining Peter about and to business. Processing the Hills, Global had -- Arnel talked and and central Refining

change at the So table. processes leadership there's organization. of changed been our a the We've lot within

that primary we're have which, is And we're And as just in incidents, focus then making so -- and I ensuring would wrong, do there we've the on, focus leveraging course, that we mitigated go put finally, something does are on technologies and incidents. whatever we an focus say, not also that if consequence potential sure much of as on preventing using preventing technology, the enormous just available. but

implementing technologies as management. that we're call, the collision On other well. last avoidance talked fatigue and I about There's

reorganizing, getting organization technology. experts, the and changing leveraging processes in the leadership, of new So that third-party input bringing from

Okay.

shifting Second the provide gears. of that thumbnail totally I'm the U.K. with bit of terms package a like. just can is question in if on looks But a wondering us of -- just assets, what you sale

year, it but it's problem have reduction? of day. an think also XX,XXX about or is strategic don't acceleration a And the certainly debt I this fit? motivation around here debt reduction You a of money then really acceleration is barrels about

fit this with it's around Well, it. both is some of -- strategic associated

was could Our the -- is narrow we view focus.

of of all the the the various require move All lots investment to business company forward. and parts of

size and critical. of is day. about a disciplined up investments. coming barrels staying significant package the capital the XX,XXX deployment our is And Rosebank And requires is Obviously, so total on

comes of from Our next Gresh question line JPMorgan. the Phil from

your has factors First question, it. obviously, there on around different Elliott I their out about was proposal many with retail. curious particularly view

of the just about think of how maintain And was is talked I model. retail you You control integrated benefits assets. the wondering to strategic it

question. Great Phil. Thanks, Yes.

have in rack that. it's on of the rack America. And flow wholesale It's with in business any cash America, in barrel is retail the a our per key as business, business We part in downstream well. and forward downstream North the North business We're highest best generating industrial business basis our interesting. and of also intertwined forward business our a

forward is we to what closest versus integrated particularly Rack deliver business twice our the retail my it's very chain. can so a been of And the head-to-head and able strong highlighted a we've profitability remarks. one go it's the next reasons peer, call COVID, with businesses. through as in maximizing prepared other as I that the And We think business to performer value across retail key also

in think think that we it's business we have stayed we So important together. downstream and it America, the best North

Very Got the second My clear. factors. respect Okay. to it. cost question with

uncontrollable just period. is was looking I interesting. $X.X costs 'XX reducing over kind were recognize about at your So we but by operating think remaining? still just are and And so of about you of $XXX suggest to between control. different, where slides billion environment the the of trajectory certainly XXXX in left And very But I $X.X the million kind would will looking Analyst update how it's 'XX, you you talked Day billion versus back entirely cost underlying think be any the factors, where the outside imply about is disaggregate maybe savings if to multiyear there of I get? that would a I what be you're controllable would

answer Alister that. let I'll

it cost still little side. if Thanks, very are enhancement say reduction, was margin. on really Phil, $X.X I the if ramping I the costs up. on We're look And billion comps we're recall for actually that would we -- last that, at of question. revenue for the year you around track

coming that out you're move 'XX in business, going As through plan costs and ramp here. up 'XX, will the really with more of and we which is to in XXXX, our line see

both -- we on are went new systems we mean Mark I element key that live track. I mentioned at on beginning and So process, the business April. of the our

see come the significant across on about to those organization, remarks. costs my year. are out this start some I later You'll they And of talked as in

on we're track. So

inflation. we're mentioned -- at obviously, looking that. we're You Yes,

how we cost can. offset the we as both the operating looking to as year, the continue at attack as capital that the We'll could could go through of that, are mitigate we much remainder and how We on we side.

next Our of from Neil the from question comes Mehta Sachs. Goldman line

love downstream the business. are of off side refining to on the Obviously, right the the screen strong I'd on kick fundamentals very dMark, now.

And Harbor so New you barrel. $XX indicator raised at York a your

business. curious you on And enable decent Just the refining QX screen? against your what strong Does like look on you quarter. you're here it the perspective to capturing a a have turnaround of of amount second see the how in still on earn does backwardation the the that side in margin you in

So saw morning on tack profitability your to then But any in there running. is want And operationally ability up thoughts if some is maximize in downtime. that I around this headlines still Denver and this on plant to environment? we

Appreciate Neil. Thanks, Great. it. Yes.

Denver me deal upfront. Let with

we are essentially those everything things. posting to sorts network for awareness just make yes, and So on public community there, our sure of

to any we saw and expect make you to is in product do kind our way, our of in communications posted normal this protocol, continue what Denver. in So but we be material not

it's On the interesting. downstream,

Chicago long get in a as market kind is would But It's into is strong. you see New this downstream commented same strength even in as strongest seen remarks. Chicago my seeing Harbor. as time, market, said, interesting. New not of I very But the York we've that prepared we in in Harbor York the we're the particularly

we've have business in a significant with the strength fact that to such, consumer. so in strong markets. direct business distillate our continued seeing The distillate seen capture And the and the of very side wholesale connection we we're

capture, And in one downstream go we're we so strong remarks fantastic. forward. strengthen we market performance the think commented that the to its to my we and expecting in reasons as of looks have very And the it's continue I that

short done. what the is. Sarnia turnarounds. Montreal. a inventory been really here that's and our So of bunch is is in period built now turnaround Edmonton so focus manage for has a We've to

we inventory it. so And to be able built to manage the

the capture downstream. And so is quarters always, our as in focus to and QX is of much this. the strong are QX

that's So on. what focused we're

business. comments And then side the the mining the your follow-up, around of

said, look a new you brought take to you As at in assets. leadership those

Syncrude, investors, those One go Or are those the other having Hills, words, there some asset. asset-driven? Fort which about nature, is and of are the community challenges of older that questions is talk as base that in you maybe a mining, you're we And should get problems worried newer fundamental of process-driven? In as think each be then a in from we about? about are through them, them are

would which is asset more -- a would problem, process which be asset is fixable? it So be Or problem, problematic? more underlying an

calls, into Well, as pieces with the contractor Safety I on One mobile equipment. talked exclusively would it. contractors separate safety in almost with the is we've this performance. performance, is previous young X It's associated with on community.

side, ore about and a huge grade on sure focus the the reasons unexpected of avoidance it's making collision help fully in that technology at the the opening We risks is we body-related, accordingly. them Hills, talked It's So that understand mine. In about we mine coming we've that very phase mining up talked is this folks of are are of some as Fort that phase. such also a managing high in area. and the this -- and one think the like the can that south focused ore

We've is XXX% some and physical we the extremely well. the before Hills Fort So plant we've run above of our mine that this But at evolution such. has highlighted Fort Hills of go. the just design as this -- operated

us associated we're the will table on managing to and operations. help reliable global in and that expertise ensure mining cards performance. I with But and we've safe would table So safety I getting think Clearly, this separate it. delivering put the the

Capital. Our next from question comes Fong CIBC the Dennis of from line

out improvements optimization, free back? $XXX level first increased thinking think along that cash existing to flow buying of we in way Phil incremental the there a to, $XXX you're maybe million what with By and one AHS another we that talking could how potentially digital terms margin. about be the follows estimates, was million our flow free that in cost think the funds XXXX increase call breakeven bit those The through there be you we'll it, mine initiatives, that about structure? synergies. And should shares addition How to influences dividend little

that Dennis. of little Yes. we've to and earlier, breakeven structure we it dividend. breakeven, essentially as the in the mean Thanks, we that that room we'll hundred increase from by cost the realization a that, you'll the billion. lowers accelerate recall does that. In the Okay. I as to to several and more $X million cost further give lowering had, the outlined is come talked -- dollars breakeven. to And continue I increase bit ourselves XXXX, What benefits chart there's from a further of

stock Investor what the at shareholders. lowering back, ourselves of buying And remaining line in that laid increase with us the flexibility continue opportunity the by increase the more more So costs, to the dividend for to to out the dividend we we we're Day. course, allow gives

there. correct absolutely You're

was add is And components is of maybe can lot it interesting But cash plan, is talked which more because about which been extract in interesting. just $X first billion operation and short of cost-oriented, we time, ways learning because the to we're of milestone -- just more and for flow some the interconnecting is payout, a some interesting. our I it's that, margin. Syncrude in pipeline of cash. reached which It's Plant various leverage period additional to quarter, and a a Alister, improvement and We've it achieved between Base

of better one able just that's better to and results. drive example we're So why

Shifting second bitumen capture, color. Can Great. is considerably here, the frankly, specifically stronger that or been been really that of of talk upstream Great. barrels? quarter downstream to Really in has upstream question underlying strength non-upgraded more advantages the incremental Suncor relative which you Obviously, on changes has some more specifically benchmark. just, the quarter-over-quarter like side. and side, trading value what degree were my for to to driven on appreciate may have supply gears realizations there's the implemented some some kind

Yes.

And Fort less see, to is de-asphalted, efficient it as and be we that's into that. the much of take Because Coast in we can Gulf literally actually the blended, of and diluent mine. this, can Some advantaged barrel all partially you and U.S. higher because Hills a very logistics such netbacks. coming it our it's way needs drive have out the of we sell

If you go back captures with associated see in higher time, netback that. it a you'll

this we were and that's So where moving some of coming access, assets out of production these is the versus just QX. total volumes the market in

a Fort our see higher with that results. in So being Hills of larger portion production with netbacks, the you

question from the from line next Our Fargo. comes Roger Read of Wells

ties of into questions few there. already some maybe Just and that little the follow bit a how of and side maybe the out a of the into like probably to maintenance up upstream how that that ties -- are business the on

at part that how the process here team aimed already need was do? curious coming the improvements? So you Or at I to we in affecting quarter, may maintenance just just at is you management what's overall of this any that. look new maintenance it be second the is basic

Yes.

a You at that, Roger, see little bit Firebag. of

vast reliable, work and with some operations Firebag, the just kind annualized associated operate game doing facility about time-based going big forward. is it. time the this maintenance has plants the had is And we've it's they're the this our But So majority stage that this view ensure to of the at or of of is really first safe down at same that going time. could integrity forward. the X At

of then on assume table understand level. you the divestments billion back on the if $X and used $X $XX we the And target of repurchase, that U.K. And billion to trying the in bit, little reach then from guess, goals do the dividends, in reduction? proceeds share was gears a the of I would longer-term special via, Norway what to Okay. the returning the maybe going there shifting debt the all be billion debt, process towards

Thanks, Roger.

billion the $X billion, could $XX flow we we've time stock. our If anything not then debt you the table. and we buyback the It the off we reduction. XX% at we returns. at of it's at get that all At point, same we're dividends. be talked taking about to to allows this to -- dividends. to XXX% by this look to XX% to point, funds And and devote year variable And back buyback. us bought could of get allocation, over a end Once as the It that of switch free special shareholder be it XX% expect big to

the I funds think leave to of open I that. to are then that options at flow XXX% my committed we back And on shareholders. returning point to is would free the the What like free they go asset that we you at old in to we go they get proceeds next on -- did expect chart, -- look funds if the the into sales, which year, flow.

coming at would allocated year, debt they be So to XX% next in buyback, reduction. the XX%

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

perspective to think differential that you what egress do apportionment are things seeing or much this for and Most of completion, toss the of you got to expansion basin anything a my terms of access. currently in comes has me exposure, but on how at mechanical questions one mind? get with that it were have in industry just could I'll understanding now maybe else be market which And a the storage, year QX from don't Trans you And basin pushed could XXXX rate. next tight event Mountain answered just already, for thinking between TMX?

QX significant within see That's that in market a question. big Canada. through inventory Thanks, recall, through I Yes. for interesting the time the Menno. first to we and QX ever Western had It's draws

clearer it's is as now all little happened. think a that to reported, why I everybody that

so inventory coming maintenance into season. at now levels sitting And relatively we're low

we're and to amount in So going that available expect I of fall. a Canada the would fair sideways until trade inventory have through Western

rail day Now a could that's end unapportions. and still next we in quarter Surprisingly, the we're being think oil mainline barrels the possibility. moving I building XXX,XXX of of about a fourth by up despite inventory first year?

through oil, So of that until move now and stay actually we the fall. the would space lots there's could it’s right mainline unapportioned expect

of it end winter say, much of is could go the another when So we means to and if through question 'XX, it QX 'XX, be gets talking about the actually you we have pushed start to, tighter.

expectation That and -- a seems making of be point. team expectation is said, and be progress. good well a is realistic for that executing 'XX our a is the that bit pinch to could late TMPL, So

our for call we're expecting So and at the that dates time. have Thanks think to is that the it that question. we're out happen -- with, I there aligned they

are seeing the degree already, since fronts And just Norway, Mark. really you're That's the to sort solar, feel touched confident follow how a spread? M&A And with question And U.K., the get on movement on of Yes. wind, bid-ask in the market testing like market you what across of moment? asset any I'll on that different deals up can the of Are of you some but at these does sales. number a at terms helpful, the maybe the you've some this moment, line?

get and you and oil gas gas. into When is natural in Yes. such, volatility great both huge, the commodity It's because side the complicated question. oil and a in price it's the natural

you to get massive wind are we're our to selling that. for will response well, current and across whether fair so line associated us goal these opportunities time the investments or We've value wind I little and get had and that's solar, would able and a The business. solar our underway. tell to with get When different. say, And not that it, a

had it's In process down different to inquiries so many associated we've fact, so so it. because that slowing process with much the

we'll So and Golden last that. the I it. oil I'm very we although on we're Eagle really did quite and confident But get move that and happy our side, deal complicated, in with gas associated that'll it's with good year, more value forward, think that,

So and we'll wait But plays tell. see how will out. it time

Our question Suisse. Credit from line next of Manav comes Gupta from the

a had a about interesting is I trading trading here. bitumen almost we're seeing over below WCS sweet and XX%. I mean $X dynamic and very question. quick Syncrude is WTI, XX%

the what's the system? in one flexibility the us So can weet expense the you much bitumen? of make a at little you the Can I have more to you the Syncrude actually if in And other. product system, flexibility than more system you the push make how know remind

Manav. question, Great Yes.

getting it's only asset extremely the This the at even our some a talked average And in that percentage comments one have And so cracks obviously, is we premium. stronger. And sale sides about a distillate that high-distillate as makes synthetic at molecules of strong because you have the strong, trading lot makes and then you at think where physical related higher than you're but the tremendous out, within business. sweet a it's product, is our Syncrude are Syncrude, integrated are diesel disproportionately to a that pointed trading much both it of here And the So Gasoline I the market. refining crude. the system back wins forward as a synthetic barrel model distillate refining premium. we significant to sweet strong. of goes go big seeing is

of pointed so distillate. And is either or our prepared remarks, in out my synthetic as XX% I production

to and we model So of that going the our at this think condition. tremendous sides market as have integrated because this we that downstream, business, supercharge is the upstream really look opportunity that both

up it and us the third sets So second for well quarter. very

I And cash marketing on the you that think normalized confident refining billion. of like on reasonably operations refining, generate indicated a can have base $X in you and that are from Perfect. past,

at in $X.X a pandemic XXXX, year. I think you were is billion which

You in improved about to billion XXXX. $X.X

now, capture environment billion had refining you right like somewhere, And given estimate. a are the your reasonable be in indicated $X of your and conservative billion is But very we $X would system. kind

Can operations a little billion? that? year from from where a adjusted of not in are it's operations or you -- could we know -- be flow cash easy I Suncor question, a at talk $X about bit in little bit billion, So an but $X refining least

it what is billion, And our up normal this consider market. I we We're a to not to about Well, But market the demand of a we'll leave normal $X business numbers. you kind for with talk is, back. clearly, with be that come to we when downstream say the would seeing tremendous strength.

expecting And saw and Manav. what so be this Thanks, above in to year's are XXXX we we performance XXXX.

comes question Bank the Our line last America. Doug of of from Leggate from

the or if you wonder, as given early just quarter, Mark, I could realize seeing you're safety. wonder performance to to event what address your in initiatives reliability I insights pretty of that has new I been doing the team or But the the give us identified have on the XX. any one criticisms strong obviously management operation of and July doing obvious is in past, which been

from how the are we've our one lot lessons performance we experts, like does from relative and From that about that, the or what standardization doing. is boots that -- some we're having the when reorganization. Doug. to had with strengthened this to a majors of super exactly we excellence also are but driving of understand doing we mine, play to of done and Thanks, global third-party not ground what assessed core I talk both -- doing out, We've the lot a folks. that Yes. it they tried the A We've at things and company. core the about the significantly learned feedback learned degree, of in this on getting looked

leaders behind and new of lot that the in brought reorganization. a such. So all the We was

Peter kind a has he’s window, And which like for a interesting, cold go to over eyes through. getting is the almost now this Peter, on He's just ground been chance a because month. expert so into of

like changed. the he's feels of Some things need he to be it, impressed with, some of

preventing facilities emphasis focus the sharing standardized our center done a more talent on lots assessments all versus across and feel driving across safe. with but of we so ensuring the have And incidents, facilities. risk facilities being lot around all our the various within assessments the actual themselves of the putting Peter that organization, and we're capacity the At support not of to on just

nuggets for the have it one a lot get thought for few be we we that the to to operating the directly major a think of chance work they're the it's we from it's important July that that things capability organization in leadership would one meet that them is doing. of understand because about the the whole you set the So process. such investors and in make that sense up those these a hear reasons of to able providing. are of And our people, we And XX they're and

So we that forward to look opportunity.

I'm grateful answer. I very is free cash of early looking I to My much obviously the days that. follow-up allocation flow. guess, forward on, know for and it's

target. now could organic look like of sounds that's all our refining are obviously, mid-cycle It some resetting I us got like. views traction. And think what as billion you've $X getting to your self-help

to of and of was other one that towards allocation shareholders, returns brought So flow they issues by the up so buybacks cash was Elliott, how I'm obviously, capital saw free share curious, on.

last you've I'm substantially returns topic if that seems any because dialogue cash that on year. higher had your So laid than for capacity curious what could be it you out

specific I'll a that I lot. any mean take Doug, one. to but we Yes. talk shareholders haven’t we made dialogue,

net to expected would back more come bought the a out shares of why We I accelerated and -- to strong all and this there. are by fair than say, have at And of we're year being last that's fact. out with say the debt look, when consistent with it's matter environment substantially we but framework. mean Day as billion expect to it's we end we business $XX our Investor year got able be of laid the

it's to as a allocate the returns. that's outlined debt forward, price our the term. And the want that we of dividend, cash may You reduction. buyback, WTI assuming that returns. we you'll $XX means flow what the can free much And move see more recall to to we the today. last we shareholder were we're year, long And in accelerate Clearly, now not elated but that over there,

time. have no further We at questions this

of closing Investor over to Now I'll Vice turn Bell, President Trevor back remarks. Relations, any the for call

today's Great. there's happy any Well, be We'd to everyone, us team. for questions, the That and today. call. out joining IR you. thank myself operator, Thank concludes follow-up thanks, to you, If help. reach and please

today's you conference for Thank concludes This call. participating.

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