Patrick O'Rourke

Patrick O'Rourke asked about Suncor's plans to formalize its refinery throughput levels, given consistent performance exceeding 100% utilization and the 'raising the denominator' strategy. He also inquired about the signals for releasing capital to shareholders if the company's debt remains well below its $8 billion target, the preferred vehicle for returns, and if low debt could be considered 'dry powder' for inorganic M&A.

Answer

CEO Rich Kruger explained Suncor uses two sets of books: an external nameplate of 466,000 barrels per day and an internal, larger denominator to drive continuous improvement, aiming for 95-96% utilization on the higher internal capacity. He acknowledged the need to eventually 'come clean' on the network's true capacity. CFO Troy Little stated that low debt is not viewed as 'dry powder' for acquisitions, as opportunities define M&A. He reiterated the 'paying shareholders first' philosophy, noting that continued operational improvement, rather than debt levels, would drive increased buybacks.

Patrick O'Rourke asked about Suncor's plans to formalize refinery throughput levels, given consistent performance over 100% utilization and the 'raising the denominator' philosophy. He also inquired about signals for releasing more capital to shareholders and the potential use of the company's strong debt position as dry powder for inorganic opportunities.

Answer

Rich Kruger (CEO) explained Suncor uses internal books with a larger, debottlenecked denominator to drive continuous improvement, acknowledging the need to eventually update the external nameplate. Troy Little (CFO) stated that dry powder is not specifically for acquisitions, and increased buybacks are driven by operational improvements, not solely debt levels, reiterating the 'pay shareholders first' philosophy.