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Released February 26, 2024 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Suncor Energy's (NYSE:SU) (Calgary, Alberta) fourth-quarter earnings results show the energy company reached its second-highest quarterly upstream production in company history and its best-ever oil sands production. Suncor plans to spend between C$6.3 billion (US$4.67 billion) and C$6.5 billion (US$4.82 billion) on capital expenditures (capex) in 2024, including between C$4.3 billion (US$ 3.1 billion) and C$4.4 billion (US$3.2 billion) for its oil sands business.
Oil sands production of 757,400 barrels per day (BBL/d) was up from 646,100 BBL/d in the third quarter, "primarily due to the company's increased working interest and strong bitumen production at Fort Hills [oil sands project]," the company said in an earnings-related press release. Suncor is forecasting 2024 production from its oil sands operations to reach between 770,000 and 810,000 BBL/d.
In November, Suncor became the full owner of Fort Hills, which produces up to 194,000 BBL/d of bitumen, after completing its acquisition of the remaining interest by purchasing TotalEnergies EP Canada Limited from TotalEnergies SE (NYSE:TTE) (Paris, France). The acquisition will add 61,000 BBL/d of net bitumen production capacity and 675 million barrels of proved and probable reserves to Suncor's existing oil sands portfolio.
Suncor's planned 2024 capex guidance of C$6.3 billion (US$4.67 billion) to C$6.5 billion (US$4.82 billion) is up from the 2023 forecast of C$5.4 billion (US$3.99 billion) to C$5.8 billion (US$4.29 billion). In a quarterly earnings-related conference call, Suncor Chief Financial Officer Kris Smith highlighted some of the company's capital investments, which includes its planned expansion of the Fort Hills oil sands mine and processing plant in Fort McMurray, Alberta. Suncor is seeking permits for the project, which aims to increase production to 225,000 BBL/d of bitumen. The company aims to begin construction on the expansion in mid-2025, although numerous factors could delay or alter any investment. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can learn more through a detailed project report.
Smith also pointed to another oil sands project, at its Mildred Lake oil sands mine near Fort McMurray. The project will maintain bitumen production at the site, which is expected to be depleted in the near future. At the 7,500-ton-per-hour mining operation, Suncor is adding two open-pit mines, MLX-West and MLX-East, to extend the mine's life by 14 years. Work on the MLX-West portion kicked off in 2021 and is expected to wrap up in 2025. If this portion proves to be economical, Suncor will begin work on MLX-East, putting it on track for completion in 2029. Subscribers can learn more by viewing the project reports on MLX-West and MLX-East.
In terms of fourth-quarter refining throughput, Suncor reported processing 445,900 BBL/d of crude oil, down from 463,200 BBL/d in the third quarter but an increase from 440,000 BBL/d in fourth-quarter 2022; refinery utilization in the fourth quarter was 98%, up from 94% year-over-year. On the conference call, Smith pointed to a project aimed at boosting that amount, at its 160,000-BBL/d Fort McMurray upgrader. The upgrader features eight coke drums that have reached the end of their useful life. In May, Suncor expects it will begin replacing four coke drums, to be completed in July, and a Phase II replacement for the other four drums is tentatively planned to kick off in mid-2028. Subscribers to the Refining Project Database can read detailed reports on Phase I and Phase II.
In the conference call, Suncor Chief Financial Officer Richard Kruger said the company missed its refining utilization guidance by a couple of percentage points for full-year 2023, "really attributed to a slow recovery in the first half of the year" at its refinery in Commerce City, Colorado, which resumed full operations in March after a series of failures at the facility. He also pointed to the delayed start-up of its Terra Nova Floating Production Storage and Offloading (FPSO) facility, offshore Newfoundland, which was taken out of service in 2019; production restarted in the fourth quarter and is currently ramping up. Subscribers to the GMI Refining and Oil & Gas Production plant databases can click here a detailed profile on the Commerce City refinery, and click here to read more information on the Terra Nova FPSO.
Suncor reported net income of C$2.8 billion (US$2 billion) for the fourth quarter, which included a C$1.125 billion (US$832.3 million) non-cash gain because of the TotalEnergies Canada acquisition. That compares with C$1.54 billion (US$1.12 billion) for the third quarter and is nearly flat compared with fourth-quarter 2022.
Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Click here for a full list of reports for active and planned projects from Suncor.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
Oil sands production of 757,400 barrels per day (BBL/d) was up from 646,100 BBL/d in the third quarter, "primarily due to the company's increased working interest and strong bitumen production at Fort Hills [oil sands project]," the company said in an earnings-related press release. Suncor is forecasting 2024 production from its oil sands operations to reach between 770,000 and 810,000 BBL/d.
In November, Suncor became the full owner of Fort Hills, which produces up to 194,000 BBL/d of bitumen, after completing its acquisition of the remaining interest by purchasing TotalEnergies EP Canada Limited from TotalEnergies SE (NYSE:TTE) (Paris, France). The acquisition will add 61,000 BBL/d of net bitumen production capacity and 675 million barrels of proved and probable reserves to Suncor's existing oil sands portfolio.
Suncor's planned 2024 capex guidance of C$6.3 billion (US$4.67 billion) to C$6.5 billion (US$4.82 billion) is up from the 2023 forecast of C$5.4 billion (US$3.99 billion) to C$5.8 billion (US$4.29 billion). In a quarterly earnings-related conference call, Suncor Chief Financial Officer Kris Smith highlighted some of the company's capital investments, which includes its planned expansion of the Fort Hills oil sands mine and processing plant in Fort McMurray, Alberta. Suncor is seeking permits for the project, which aims to increase production to 225,000 BBL/d of bitumen. The company aims to begin construction on the expansion in mid-2025, although numerous factors could delay or alter any investment. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can learn more through a detailed project report.
Smith also pointed to another oil sands project, at its Mildred Lake oil sands mine near Fort McMurray. The project will maintain bitumen production at the site, which is expected to be depleted in the near future. At the 7,500-ton-per-hour mining operation, Suncor is adding two open-pit mines, MLX-West and MLX-East, to extend the mine's life by 14 years. Work on the MLX-West portion kicked off in 2021 and is expected to wrap up in 2025. If this portion proves to be economical, Suncor will begin work on MLX-East, putting it on track for completion in 2029. Subscribers can learn more by viewing the project reports on MLX-West and MLX-East.
In terms of fourth-quarter refining throughput, Suncor reported processing 445,900 BBL/d of crude oil, down from 463,200 BBL/d in the third quarter but an increase from 440,000 BBL/d in fourth-quarter 2022; refinery utilization in the fourth quarter was 98%, up from 94% year-over-year. On the conference call, Smith pointed to a project aimed at boosting that amount, at its 160,000-BBL/d Fort McMurray upgrader. The upgrader features eight coke drums that have reached the end of their useful life. In May, Suncor expects it will begin replacing four coke drums, to be completed in July, and a Phase II replacement for the other four drums is tentatively planned to kick off in mid-2028. Subscribers to the Refining Project Database can read detailed reports on Phase I and Phase II.
In the conference call, Suncor Chief Financial Officer Richard Kruger said the company missed its refining utilization guidance by a couple of percentage points for full-year 2023, "really attributed to a slow recovery in the first half of the year" at its refinery in Commerce City, Colorado, which resumed full operations in March after a series of failures at the facility. He also pointed to the delayed start-up of its Terra Nova Floating Production Storage and Offloading (FPSO) facility, offshore Newfoundland, which was taken out of service in 2019; production restarted in the fourth quarter and is currently ramping up. Subscribers to the GMI Refining and Oil & Gas Production plant databases can click here a detailed profile on the Commerce City refinery, and click here to read more information on the Terra Nova FPSO.
Suncor reported net income of C$2.8 billion (US$2 billion) for the fourth quarter, which included a C$1.125 billion (US$832.3 million) non-cash gain because of the TotalEnergies Canada acquisition. That compares with C$1.54 billion (US$1.12 billion) for the third quarter and is nearly flat compared with fourth-quarter 2022.
Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Click here for a full list of reports for active and planned projects from Suncor.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
