Suncor Energy, Canada’s leading integrated energy company, announced this Monday its capital expenditures program for 2022, which establishes an expected increase of 5% in its oil production compared to the previous year.
Firstly, in the program, the company supports doubling the dividend, increasing share buybacks, and lowering the capital program by $300 million, to a total of $4,7 billion. The program also highlights an upstream production of 750,000 to 790,000 barrels of oil equivalent per day.
Such an increase would receive support from the Fort Hills ramp-up to full production rates. The previously announced sale of Golden Eagle would also be a factor. In addition, the company expects a refinery throughput at 2019 high levels; and the highest anticipated sales in the company’s history in its downstream business.
Moreover, Mark Little, president, and chief executive officer said about the matter. “Our strong execution in 2021 and confidence in our plan enabled us to double the dividend, increase the buyback program to 7% of the public float, and reduce net debt at the highest annual pace ever.”
Also recommended for you: SurfCleaner and partner to deploy water treatment tech in the UK. Click here to read.
Suncor Energy to continue growth initiatives
He also remarked. “We enter 2022 with strong momentum and remain steadfast in our focus on operational excellence, capital and cost discipline, increasing shareholder returns and delivering a more resilient future for Suncor.”
On the other hand, the company outlines that its Fort Hills unit will produce 85,000; to 100,000 barrels per day and an operating utilization of 90%. This production increase and focus on costs would result in an approximately 40% reduction of Fort Hills cash operating costs.
Furthermore, according to the statement, Fort Hills will ramp up imminently in late December 2021 to a stable two-train operation. Under the first year of Suncor operatorship, Syncrude’s production will also be 5% higher in 2022 than 2021. Total production will be around 175,000 to 190,000 barrels per day.
Finally, Suncor’s 2022 capital program is $300 million below the planned corporate capital ceiling previously announced. The 2022 capital program will focus largely on sustaining capital around $3,2 to $3,4 billion; to address maintenance and tailings optimizations. The remaining of the capital program will go to the $2.1 billion free funds flow growth initiatives; including the Base Plant Cogeneration and Forty Mile power project, Terra Nova Asset Life Extension, and In Situ well pads.