Good news Suncor Sets Capital Budget At $7.2-$7.8 Billion For 2015 NOV. 19, 2014 – VIEW ISSUE Suncor Energy Inc. has announced capital spending plans of between $7.2 and $7.8 billion for 2015 and expects average production of 540,000 to 585,000 boe per day. “Our production guidance for next year reflects a continued trend of improved reliability and steady growth,” said Steve Williams, Suncor’s president and chief executive officer. “We remain focused on driving down our oilsands cash operating costs, underscoring our commitment to creating value for shareholders.” Last November, Suncor announced 2014 spending plans of $7.8 billion (DOB, Nov. 21, 2013), but that was reduced over the summer by $1 billion to a total of $6.8 billion (DOB, July 31, 2014). Approximately 55 per cent or up to $4.3 billion of the 2015 capital spend is expected to go towards growth projects with over $2 billion earmarked for the oilsands segment. About 45 per cent or up to $3.5 billion of Suncor’s 2015 capital spend is expected to be allocated towards sustaining capital investments focused on safe, reliable and efficient operations across the company’s assets. “Our disciplined approach to building a strong balance sheet and prudently managing our capital program has positioned us to execute on our strategy even during periods of lower crude prices,” said Williams. “We will continue to invest in both our base business and in our key growth projects going forward and would expect to generate free cash flow even with Brent oil prices in the US$80 to US$85 per barrel range.” Suncor also confirmed comments made in its Q3 release that total production for 2014 is anticipated to be in the low end of its annual guidance range, with oilsands operations production slightly below the lower end of the guidance range (DOB, Oct. 30, 2014).
Posted on: Thu, 25 Dec 2014 15:51:01 +0000