<PAGE>
EXHIBIT 1
<PAGE>
[LOGO] THIRD QUARTER 2000
Report to shareholders for the
Period ended September 30, 2000.
Strong Operational Earnings on Strengthened
Operational Performance and Higher Prices
REVISED COST ESTIMATE FOR PROJECT MILLENNIUM
THIRD QUARTER HIGHLIGHTS
(All financial figures are in Canadian dollars unless otherwise noted.)
- Suncor Energy Inc.'s earnings for the first nine months of 2000 were $266
million ($1.11 per common share), compared with earnings of $114 million
($0.45 per common share) for the comparable period in 1999. Cash flow from
operations during the same period was $742 million ($3.19 per common share),
compared with $369 million ($1.56 per common share) in 1999.
During both the quarter and year, there were transactions impacting
earnings that were not viewed as ongoing operational earnings. See the
table below that breaks out the components of net earnings.
The above noted transactions included Suncor's partial write-down of its
carrying value of the Stuart Oil Shale project in Australia, restructuring
costs and divestment gains in its Natural Gas (formerly Exploration and
Production) business and Project Millennium start-up expenses.
Operational earnings increased to $313 million from $93 million in the same
period of 1999. The increase primarily reflects higher commodity prices,
record oil sands production, improved downstream refining margins, lower
interest expense and higher foreign exchange gains. These factors were
partially offset by higher hedging losses, higher operating costs, lower
natural gas volumes, expenses associated with the Stuart Oil Shale Project
and lower retail gasoline margins. The increase in cash flow from operations
was due to the same factors as noted above.
- Third quarter earnings were $50 million ($0.19 per common share), compared
with $70 million ($0.29 per common share) in the third quarter of 1999. Cash
flow from operations was $229 million ($0.98 per common share), compared with
$147 million ($0.62 per common share) for the third quarter of 1999.
In the quarter, net earnings were also impacted by the partial write-down
of the Stuart project, Natural Gas restructuring costs and divestment gains
and Project Millennium start-up expenses.
Operational earnings in the quarter were $111 million compared to $55
million in the same quarter last year. Factors affecting third quarter
operational earnings and cash flow were essentially the same as those
affecting the company's nine-month financial performance.
- Subsequent to the end of the quarter, Suncor completed a thorough analysis of
Project Millennium at its Oil Sands operations and has revised the project's
cost estimate to $2.8 billion. The project will more than double production
capacity to 225,000 barrels per day from 105,000 barrels per day in 1999.
Major commissioning work is still planned for the second half of 2001, with
previously announced production and cash operating cost targets on track.
(See pages 2 and 3 for further details).
EARNINGS COMPONENTS
<TABLE>
<CAPTION>
Nine months ended
Third Quarter September 30
($ millions after income taxes) 2000 1999 2000 1999
-------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONAL EARNINGS 111 55 313 93
NATURAL GAS
Asset divestments 35 15 69 21
Restructuring cost (10) -- (30) --
STUART OIL SHALE PROJECT
Partial asset write-down (80) -- (80) --
OIL SANDS
Start-up expenses -
Project Millenium (6) -- (6) --
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Net earnings 50 70 266 114
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</TABLE>
CASH FLOW COMPONENTS
<TABLE>
<CAPTION>
Nine months ended
Third Quarter September 30
($ millions) 2000 1999 2000 1999
-------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONAL CASH FLOW 252 147 773 369
NATURAL GAS
Restructuing cost (1) -- (9) --
OIL SANDS
Start-up expenses &
overburden removal -
Project Millennium (22) -- (22) --
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Cash flow from operations 229 147 742 369
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</TABLE>
Media and Investor Inquiries: For more information about Suncor Energy,
John Rogers (403) 269-8670 visit our website at: www.suncor.com
<PAGE>
2 S U N C O R E N E R G Y I N C. - T H I R D Q U A R T E R 2 0 0 0
"Our strong operational performance allowed us to take advantage of the
current pricing environment for our key commodities.''
R I C H A R D L. G E O R G E,
President and Chief Executive Officer
<TABLE>
<CAPTION>
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1999 2000
------------------------------------------------------------------
Q3 Q4 Q1 Q2 Q3
------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
EARNINGS BY QUARTER 70 72 105 111 50
($ millions)
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</TABLE>
<TABLE>
<CAPTION>
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1999 2000
------------------------------------------------------------------
Q3 Q4 Q1 Q2 Q3
------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
CASH FLOW FROM OPERATIONS
BY QUARTER 147 222 269 244 229
($ millions)
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</TABLE>
- Suncor's hedging program had a loss of $69 million during the third
quarter compared with a $24 million loss in the third quarter of 1999, and
a $171 million loss on a year-to-date basis compared with a $20 million
loss for the same period last year.
- Suncor's total crude oil, natural gas and natural gas liquids production
during the first nine months averaged 144,100 barrels of oil equivalent (BOE)
per day, compared with 139,800 BOE per day during the same period in 1999.
Total third quarter production averaged 140,600 barrels of oil equivalent
(BOE) per day, compared with 137,100 BOE per day in the third quarter of
1999.
- Oil Sands achieved record third quarter production of 114,200 barrels per day
compared with 101,500 barrels per day in the third quarter of 1999. The
average production target for the year remains at 115,000 barrels per day.
- During the quarter, Natural Gas continued to progress its new strategy by
completing its restructuring and the divestment of non-core assets. During
the quarter, the divestment generated $113 million in proceeds, raising the
total proceeds this year to $314 million.
- Suncor's Natural Gas business had production during the third quarter of
26,400 BOE per day. Production for the year is targeted to achieve its plan
of 27,000 BOE per day.
- In the downstream refining and retail marketing business, Sunoco's third
quarter earnings rose to $19 million, up from $12 million in the third
quarter of 1999. The increase primarily reflects improved refining margins.
- During the quarter, Suncor announced plans to resolve operational issues at
its Stuart joint venture oil shale demonstration project in Australia that
could require expenditures of $13 million and potentially up to $22 million
to improve plant performance. The next stage of development will be put on
hold until operational issues and concerns about environmental and social
impacts are addressed. Suncor also recorded an after tax write-down of $80
million of the project, reflecting increased costs and delayed oil
production.
- For the second year in a row, Suncor was included in the Dow Jones
Sustainability Group Index, a global stock index that tracks the performance
of leading sustainability companies. The principles of sustainable
development are environmental performance, economic development and social
responsibility.
- Consolidated revenues for the first nine months were $2.5 billion, compared
with $1.7 billion during the same period last year. Consolidated revenues for
the third quarter were $862 million compared with $639 million in the third
quarter of 1999.
SUNCOR OPERATING STRENGTH SHOWS IN THIRD QUARTER
"Suncor continues to benefit from high commodity prices and demand for our
products," said Rick George, president and chief executive officer. "Our strong
operational performance allowed us to take advantage of the current pricing
environment for our key commodities. Sunoco's refining margins improved and Oil
Sands production during the quarter puts it on target to hit a record annual
production rate of 115,000 barrels per day this year. Natural Gas is making
significant progress with its repositioning and is on track to achieve its
target of 10 per cent return on capital within five years."
REVISED COST ESTIMATE FOR PROJECT MILLENNIUM
Subsequent to the end of the quarter, a thorough analysis was completed on
Suncor's Project Millennium that resulted in a revised cost estimate of $2.8
billion. In the first quarter of this year, Suncor had estimated project costs
could be as high as $2.45 billion, up from the original estimate of $2 billion.
Media and Investor Inquiries: For more information about Suncor Energy,
John Rogers (403) 269-8670 visit our website at: www.suncor.com
<PAGE>
3 S U N C O R E N E R G Y I N C. - T H I R D Q U A R T E R 2 0 0 0
"Even with the added cost, the economics of Project Millennium remain very
attractive and promise significant returns for our shareholders.''
R I C H A R D L. G E O R G E,
President and Chief Executive Officer
<TABLE>
<CAPTION>
--------------------------------------------------------------------
1999 2000
--------------------------------------------------------------------
Q3 Q4 Q1 Q2 Q3
--------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
INDUSTRY INDICATORS
Crude Oil - West Texas
Intermediate (U.S.$/bbl) 21.70 24.50 28.75 28.65 31.60
Exchange Rate (Cdn$ : U.S.$) .68 .69 .69 .68 .68
--------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
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1999 2000
--------------------------------------------------------------------
Q3 Q4 Q1 Q2 Q3
--------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
RATIOS
(Percentages)
Return on average shareholder's
equity 8.8 10.3 13.6 16.4 15.4
Exchange Rate (Cdn$ : U.S.$) 8.2 8.3 11.4 15.5 14.8
--------------------------------------------------------------------
</TABLE>
The increased costs are largely attributed to the rising costs of labour,
fabrication and material and a $150 million change in the project scope.
One of the largest capital projects in Canada, Project Millennium will
more than double Suncor's oil sands production capacity from an average of
105,000 barrels per day in 1999 to 225,000 barrels per day in 2002. The
project is the cornerstone of Suncor's plan to achieve daily production
capacity of 400,000 - 450,000 barrels per day at its oil sands operations by
2008.
"We always believed Project Millennium would be a major boost for the
Alberta economy. During the planning for this project three years ago, no one
could have foreseen just how strong the economy would be today and the high
demand for skilled labour across the country," says George.
The project is approximately 50 per cent complete, engineering is
essentially finished, all materials have been purchased and the focus is on
construction and completion. "With the finish line in sight, we believe our
revised estimate is an accurate reflection of the project's cost."
The additional capital costs, which were approved by Suncor's Board of
Directors, are expected to be financed through internally generated cash flow
and additional borrowing.
"Even with the added cost, the economics of Project Millennium remain very
attractive and promise significant returns for our shareholders," George
says. Project Millennium will increase plant reliability, provide
environmental improvements and reduce oil sands cash costs to between $8.50
and $9.50 per barrel. "We are as enthusiastic as ever about what this
expansion means to our future," says George.
FINANCIAL RESULTS
THIRD QUARTER
Consolidated earnings for the third quarter were $50 million ($0.19 per
common share), down from $70 million ($0.29 per common share) in the third
quarter of 1999. Operational earnings in 2000 of $111 million were higher
than the $55 million operational earnings in the same period in 1999. The $56
million increase in operational earnings to $111 million was mainly due to
higher crude oil and natural gas prices, record oil sands production,
improved refining margins and higher foreign exchange gains as the Australian
dollar weakened against the Canadian dollar. These increases were partially
offset by higher hedging losses, higher operating expenses, lower natural gas
volumes, ongoing costs associated with the Stuart Oil Shale Project and lower
retail margins.
In addition to the above items, net earnings were impacted by Suncor's
partial write-down of its carrying value of the Stuart Oil Shale project in
Australia, restructuring costs, Natural Gas divestments gains (2000 and 1999)
and Project Millennium start-up expenses. The start-up expenses relate to the
preparations necessary prior to the actual commencement of operations in
2001. The preparatory work on the project will continue over the balance of
2000 and into 2001 when start-up activities are expected to be completed and
operations begin.
Cash flow from operations for the quarter was $229 million, ($0.98 per
common share), up from $147 million, ($0.62 per common share) in the third
quarter of 1999. This improvement was primarily due to the same factors that
increased earnings, partially offset by $12 million of overburden removal
costs associated with the start-up of the Project Millennium mine in 2001.
The overburden removal cash outlays are in addition to the start-up expenses
and are always incurred before oil sands mining can be undertaken. Overburden
removal costs will begin to be expensed once oil sands
Media and Investor Inquiries: For more information about Suncor Energy,
John Rogers (403) 269-8670 visit our website at: www.suncor.com
<PAGE>
4 S U N C O R E N E R G Y I N C. - T H I R D Q U A R T E R 2 0 0 0
OIL SANDS CASH OPERATING COSTS
<TABLE>
<CAPTION>
Nine months ended
Third Quarter September 30
(Dollars per barrel) 2000 1999 2000 1999
-------------------------------------------------------------------
<S> <C> <C> <C> <C>
Base Plant 12.40 12.35 11.90 11.90
Start-up expenditures -
Project Millennium 2.10 -- 0.65 --
-------------------------------------------------------------------
Total cash operating costs 14.50 12.35 12.55 11.90
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</TABLE>
<TABLE>
<CAPTION>
--------------------------------------------------------------------
1999 2000
--------------------------------------------------------------------
Q3 Q4 Q1 Q2 Q3
--------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
OIL SANDS PRODUCTION BY QUARTER
(thousands of barrels per day) 101.5 113.2 114.8 116.7 114.2
--------------------------------------------------------------------
</TABLE>
mining commences. Cash flow from the operations, before Project Millennium
start-up expenditures and Natural Gas restructuring for the quarter, was $252
million compared with $147 million in the same period in 1999.
NINE-MONTH CONSOLIDATED EARNINGS
Consolidated earnings for the first nine months of the year were $266
million ($1.11 per common share), compared with $114 million ($0.45 per
common share), earned during the comparable period in 1999. Operational
earnings in 2000 of $313 million were higher than the $93 million operational
earnings in 1999. The $220 million increase in operational earnings to $313
million was due primarily to the same factors that impacted earnings in the
quarter. Year-to-date earnings for 2000 were also higher, reflecting a
reduction in statutory income tax rates that increased earnings by $7 million.
In addition to the above items, net earnings were also impacted by the
same factors as noted above under the third quarter discussion.
Cash flow from operations for the first nine months was $742 million
($3.19 per common share), compared with $369 million ($1.56 per common share)
in the same period of 1999. Cash flow was affected by the same factors that
increased earnings as well as the $12 million spending associated with
overburden removal prior to the commencement of mining on Project Millennium.
Cash flow from the operational activities on a year-to-date basis was $773
million compared with $369 million in the same period in 1999.
BUSINESS UNIT PERFORMANCE
OIL SANDS ON TRACK TO MEET ANNUAL PRODUCTION TARGET OF 115,000 BARRELS PER DAY
Oil Sands' third quarter earnings were $76 million ($82 million
operational earnings before Project Millennium start-up expenses) compared
with $43 million in the third quarter of 1999. Cash flow from operations was
$156 million in the third quarter compared with $104 million in the
comparable quarter in 1999. Excluding Project Millennium start-up
expenditures, 2000 cash flow from operations was $178 million.
The earnings increase reflects higher crude oil prices and record third
quarter production, partially offset by higher hedging losses and cash and
non-cash expense increases, and Project Millennium start-up expenses. Higher
expenses reflect the increased level of production, higher natural gas prices
and higher non-cash expenses (depreciation, depletion and amortization). The
higher non-cash expenses are due to a higher asset base that increased the
production capacity and an increase in the estimated amount and cost of
overburden removal.
Oil Sands third quarter production was 114,200 barrels per day compared
with 101,500 barrels per day during the third quarter of 1999. Oil Sands
continues to target annual production in 2000 of 115,000 barrels per day.
Cash operating costs for the first nine months were $12.55 per barrel
compared with $11.90 in the first nine months of 1999. Excluding the $0.65
per barrel impact of Project Millennium start-up expenditures, the cash
operating costs were $11.90 per barrel.
Media and Investor Inquiries: For more information about Suncor Energy,
John Rogers (403) 269-8670 visit our website at: www.suncor.com
<PAGE>
5 S U N C O R E N E R G Y I N C. - T H I R D Q U A R T E R 2 0 0 0
<TABLE>
<CAPTION>
-------------------------------------------------------------------
1999 2000
-------------------------------------------------------------------
Q3 Q4 Q1 Q2 Q3
-------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NATURAL GAS BOE
CONVENTIONAL PRODUCTION
BY QUARTER 35.6 33.8 33.8 26.1 26.4
(thousands of barrels of oil
equivalent per day)
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</TABLE>
<TABLE>
<CAPTION>
-------------------------------------------------------------------
1999 2000
-------------------------------------------------------------------
Q3 Q4 Q1 Q2 Q3
-------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
DOWNSTREAM PRODUCT MARGINS
BY QUARTER
(cents per litre)
Retail 6.9 7.2 6.8 6.4 6.4
Refining 4.8 4.3 5.4 6.3 6.1
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</TABLE>
NATURAL GAS GENERATES DIVESTMENT PROCEEDS OF $314 MILLION THIS YEAR
In the third quarter, Natural Gas earned $43 million ($18 million
operational earnings before asset divestments and restructuring charges)
compared with $20 million ($5 million before asset divestments) in the same
quarter of 1999. Cash flow from operations during the quarter was $64 million
compared with $39 million last year. Excluding the impact of divestment and
restructuring charges, the increase in earnings was due primarily to higher
commodity prices and lower exploration expenses, partially offset by lower
production volumes.
During the third quarter, Natural Gas completed its current planned
divestment program with the sale of non-core assets bringing the total
proceeds generated this year to $314 million. This exceeds the company's
original target of $250 million by $64 million. During 2000, Natural Gas
divested 41 million BOE of total proven reserves. These reserves represent
approximately 10,000 BOE per day of production at the time of sale. The
annualized production impact for 2000 is 5,500 BOE per day.
As expected, the divestment program resulted in a decline in production.
Third quarter production volumes averaged 26,400 BOE per day compared with
35,600 BOE per day in the third quarter of 1999. Natural Gas expects to exit
the year with a production rate of 22,000 BOE per day. Production for 2000 is
expected to average 27,000 BOE per day. The business is on track to achieve
its previously announced target of $18 - $20 million in annual expense
reductions in 2001.
HIGHER REFINING MARGINS IMPROVE SUNOCO THIRD QUARTER PERFORMANCE
Sunoco's third quarter earnings rose to $19 million, compared with
earnings of $12 million in the third quarter of 1999. Cash flow from
operations was $49 million for the quarter compared with $37 million in the
third quarter of 1999. Higher refining margins had a positive impact on
earnings and cash flow, while lower retail margins partially offset the
improved refining margins.
Refining operations earned $20 million in the third quarter compared with
earnings of $9 million for the same quarter last year. Low North American
refined product inventories and concerns of possible heating oil shortages
this winter helped push refining margins higher.
Sunoco's retail marketing earnings were $1 million, down from earnings of
$4 million in the third quarter of last year. The decrease reflects lower
margins in the quarter, and higher operating costs, including price-related
cost increases. These factors were partially offset by higher ancillary
income at the service station level.
Sunoco launched its Affinity Card loyalty program that offers residential
natural gas customers a two per cent discount on fuel and store purchases
(excluding tobacco, fast food and lottery purchases) at Sunoco retail sites.
Sunoco's Integrated Energy Solutions (IES) business posted a loss of $2
million for the quarter compared with a loss of $1 million in the third
quarter of 1999. The restructuring of pricing arrangements on contracts is
expected to generate positive earnings in 2001.
During the quarter, Sunoco launched its new e-commerce web site
WWW.SUNOCO.CA. The site supports Sunoco's existing business development and
community relations strategies by offering WEB GAS, a way to pre-purchase
gasoline and other products on the Internet, and free web-site locations to
non-profit groups.
Media and Investor Inquiries: For more information about Suncor Energy,
John Rogers (403) 269-8670 visit our website at: www.suncor.com
<PAGE>
6 S U N C O R E N E R G Y I N C. - T H I R D Q U A R T E R 2 0 0 0
STUART OIL SHALE WRITE-DOWN
During the quarter, Suncor announced plans to resolve operational issues
at its Stuart joint-venture oil shale demonstration project in Australia,
which could require expenditures of $13 million and potentially up to $22
million to improve plant performance. The next stage of development will be
put on hold until operational issues and concerns about environmental and
social impacts are addressed. Suncor also recorded an after-tax write-down of
$80 million on the project, reflecting increased costs and delayed oil
production. Future expenditures at the oil shale plant will be expensed
against earnings.
SUNCOR ENERGY IS AN INTEGRATED CANADIAN ENERGY COMPANY WITH A LEADING
POSITION IN CANADA'S OIL SANDS INDUSTRY. SUNCOR IS ALSO A NATURAL GAS
PRODUCER IN WESTERN CANADA; OPERATES A REFINING AND MARKETING BUSINESS IN
ONTARIO UNDER THE SUNOCO BRAND; AND IS COMMISSIONING AN OIL SHALE DEVELOPMENT
PROJECT IN AUSTRALIA. AT THE SAME TIME AS SUNCOR MEETS TODAY'S ENERGY NEEDS,
THE COMPANY IS ALSO INVESTING IN ALTERNATIVE AND RENEWABLE ENERGY FOR THE
FUTURE. SUNCOR ENERGY COMMON SHARES AND PREFERRED SECURITIES ARE LISTED FOR
TRADING ON THE TORONTO AND NEW YORK STOCK EXCHANGES (SYMBOL SU).
THIS NEWS RELEASE CONTAINS FORWARD-LOOKING INFORMATION. ACTUAL RESULTS
COULD DIFFER MATERIALLY FROM THOSE CURRENTLY ANTICIPATED AS A RESULT OF A
NUMBER OF FACTORS, RISKS AND UNCERTAINTIES, KNOWN AND UNKNOWN. THIS
FORWARD-LOOKING INFORMATION REGARDING SUNCOR ENERGY'S FUTURE PLANS, INCLUDING
COST ESTIMATES, IS PRELIMINARY AND REMAINS SUBJECT TO CHANGE IN RESPONSE TO
FACTORS THAT COULD INCLUDE: STAKEHOLDER CONSULTATION; THE REGULATORY PROCESS;
DETAILED ENGINEERING WORK; TECHNICAL ISSUES; ENVIRONMENTAL ISSUES;
TECHNOLOGICAL CAPABILITIES; NEW LEGISLATION; COMPETITIVE AND GENERAL ECONOMIC
FACTORS AND CONDITIONS; AND THE OCCURRENCE OF UNEXPECTED EVENTS. FURTHER
DISCUSSION OF THE RISKS, UNCERTAINTIES AND OTHER FACTORS THAT COULD AFFECT
THESE PLANS AND ANY ACTUAL RESULTS ARE DESCRIBED IN SUNCOR ENERGY'S ANNUAL
REPORT TO SHAREHOLDERS AND OTHER DOCUMENTS FILED WITH REGULATORY AUTHORITIES.
For more information about Suncor, visit our website at
WWW.SUNCOR.COM or phone:
Media Inquiries:
Lisa Falkowsky
Manager, External Communications
(403) 205-6966
[email protected]
Investor Relations:
John Rogers
Director, Investor Relations
(403) 269-8670
[email protected]
Media and Investor Inquiries: For more information about Suncor Energy,
John Rogers (403) 269-8670 visit our website at: www.suncor.com
<PAGE>
7 S U N C O R E N E R G Y I N C. - T H I R D Q U A R T E R 2 0 0 0
Consolidated Statements of Earnings
(unaudited)
<TABLE>
<CAPTION>
Third quarter Nine months ended September 30
($ millions) 2000 1999 2000 1999
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
REVENUES 862 639 2,461 1,672
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EXPENSES
Purchases of crude oil and products 212 145 575 355
Operating, selling and general 211 208 647 571
Exploration 6 8 41 28
Royalties 48 26 134 62
Taxes other than income taxes 94 84 269 246
Depreciation, depletion and amortization 91 78 271 231
Gain on disposal of assets (74) (25) (149) (34)
Write down of oil shale assets (note 2) 125 - 125 -
Restructuring (note 3) 22 - 65 -
Start-up expenses - Project Millennium (note 4) 10 - 10 -
Interest 6 5 6 24
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751 529 1994 1 483
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EARNINGS BEFORE INCOME TAXES 111 110 467 189
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PROVISION FOR INCOME TAXES
Current 19 22 38 33
Future 42 18 163 42
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61 40 201 75
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NET EARNINGS 50 70 266 114
Dividends on preferred securities (6) (7) (19) (15)
-----------------------------------------------------------------------------------------------------------------------------
Net earnings attributable to common shareholders 44 63 247 99
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PER COMMON SHARE (dollars)
Net earnings 0.22 0.32 1.20 0.52
Dividends on preferred securities 0.03 0.03 0.09 0.07
-----------------------------------------------------------------------------------------------------------------------------
Net earnings attributable to common shareholders
Basic 0.19 0.29 1.11 0.45
Diluted 0.19 0.29 1.11 0.45
-----------------------------------------------------------------------------------------------------------------------------
Dividends 0.085 0.085 0.255 0.255
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes.
Media and Investor Inquiries: For more information about Suncor Energy,
John Rogers (403) 269-8670 visit our website at: www.suncor.com
<PAGE>
8 S U N C O R E N E R G Y I N C. - T H I R D Q U A R T E R 2 0 0 0
<TABLE>
<CAPTION>
SEPTEMBER 30 December 31
($ millions) 2000 1999
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash and cash equivalents 126 5
Accounts receivable 389 277
Future income taxes 45 14
Inventories 161 161
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Total current assets 721 457
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Capital assets, net 5,427 4,528
Deferred charges and other 161 191
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Total assets 6,309 5,176
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-----------------------------------------------------------------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Short-term borrowings 25 32
Accounts payable 369 277
Accrued liabilities 264 339
Income taxes 20 15
Taxes other than income taxes 35 46
Current portion of long-term borrowings 1 1
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Total current liabilities 714 710
-----------------------------------------------------------------------------------------------------------------------------
Long-term borrowings 2,021 1,306
Accrued liabilities and other 257 236
Future income taxes 951 816
Shareholders' equity (see below) 2,366 2,108
-----------------------------------------------------------------------------------------------------------------------------
Total liabilities and shareholders' equity 6,309 5,176
-----------------------------------------------------------------------------------------------------------------------------
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SHAREHOLDERS' EQUITY:
Number Number
-----------------------------------------------------------------------------------------------------------------------------
Preferred securities 17,540,000 514 17,540,000 514
Share capital 221,701,285 534 221,032,238 524
Retained earnings 1,318 1,070
-----------------------------------------------------------------------------------------------------------------------------
2,366 2,108
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</TABLE>
See accompanying notes.
Media and Investor Inquiries: For more information about Suncor Energy,
John Rogers (403) 269-8670 visit our website at: www.suncor.com
<PAGE>
9 S U N C O R E N E R G Y I N C. - T H I R D Q U A R T E R 2 0 0 0
Consolidated Statements of Cash Flows
(unaudited)
<TABLE>
<CAPTION>
Third quarter Nine months ended September 30
($ millions) 2000 1999 2000 1999
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATING ACTIVITIES
Cash flow provided from operations (1), (2) 229 147 742 369
Decrease (increase) in operating working capital
Accounts receivable (30) (10) (112) (73)
Inventories -- 10 -- 27
Accounts payable and accrued liabilities 19 77 17 116
Taxes payable 16 18 11 6
---------------------------------------------------------------------------------------------------------------------------
CASH PROVIDED FROM OPERATING ACTIVITIES 234 242 658 445
---------------------------------------------------------------------------------------------------------------------------
CASH USED IN INVESTING ACTIVITIES (2) (390) (299) (1,066) (713)
---------------------------------------------------------------------------------------------------------------------------
NET CASH DEFICIENCY BEFORE FINANCING ACTIVITIES (156) (57) (408) (268)
---------------------------------------------------------------------------------------------------------------------------
FINANCING ACTIVITIES
Increase (decrease) in short-term borrowings 11 (5) (7) (8)
Issuance of preferred securities - - - 507
Stuart oil shale project borrowings - - - 9
Repayment of commercial paper borrowings - - - (507)
Net increase in other long-term borrowings 291 90 617 334
Issuance of common shares under stock option plan 3 - 8 5
Dividends paid on preferred securities (3) (12) (12) (35) (26)
Dividends paid on common shares (17) (19) (54) (56)
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CASH PROVIDED FROM FINANCING ACTIVITIES 276 54 529 258
---------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 120 (3) 121 (10)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 6 19 5 26
---------------------------------------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD 126 16 126 16
---------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------
PER COMMON SHARE (dollars)
(1) Cash flow provided from operations 1.03 0.67 3.35 1.67
(3) Dividends paid on preferred securities (pre-tax) 0.05 0.05 0.16 0.11
---------------------------------------------------------------------------------------------------------------------------
Cash flow provided from operations after
deducting dividends paid on preferred securities 0.98 0.62 3.19 1.56
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
(2) See Schedules of Segmented Data.
See accompanying notes.
Media and Investor Inquiries: For more information about Suncor Energy,
John Rogers (403) 269-8670 visit our website at: www.suncor.com
<PAGE>
10 S U N C O R E N E R G Y I N C. - T H I R D Q U A R T E R 2 0 0 0
Consolidated Statements of Changes in Shareholders' Equity
(unaudited)
<TABLE>
<CAPTION>
Preferred Share Retained
($ millions) Securities Capital Earnings
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
AT DECEMBER 31, 1998 - 518 981
Net earnings - - 114
Dividends paid on preferred securities - - (15)
Dividends paid on common shares - - (56)
Issuance of preferred securities 514 - -
Issued for cash under stock option plan - 5 -
---------------------------------------------------------------------------------------------------------------------------
AT SEPTEMBER 30, 1999 514 523 1,024
---------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------
AT DECEMBER 31, 1999 514 524 1,070
Net earnings - - 266
Dividends paid on preferred securities - - (19)
Dividends paid on common shares - - (54)
Issued under dividend reinvestment plan - 2 (2)
Issued for cash under stock option plan - 8 --
Income taxes - impact of new standard (note 5(b)) - - 57
---------------------------------------------------------------------------------------------------------------------------
AT SEPTEMBER 30, 2000 514 534 1,318
---------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes.
Common Share Information
--------------------------------------------------------------------------------
Share price at end of trading
<TABLE>
<CAPTION>
--------------------------------------------------------------------
1999 2000
--------------------------------------------------------------------
T3 T4 T1 T2 T3
--------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Toronto Stock Exchange -
$Canadian 28.00 30.20 31.45 34.20 32.35
--------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
--------------------------------------------------------------------
1999 2000
--------------------------------------------------------------------
T3 T4 T1 T2 T3
--------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
New York Stock Exchange -
$U.S. 19.55 20.90 21.25 23.25 22.13
--------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
2000 1999
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
nine months ended September 30
Average number outstanding, weighted monthly (thousands) 221,301 220,761
---------------------------------------------------------------------------------------------------------------------------
Book value per common share - $Canadian 8.36 7.00
---------------------------------------------------------------------------------------------------------------------------
- $U.S. 5.57 4.77
---------------------------------------------------------------------------------------------------------------------------
Common share options outstanding 5,999,137 5,868,759
---------------------------------------------------------------------------------------------------------------------------
Ratios
(unaudited)
---------------------------------------------------------------------------------------------------------------------------
as at September 30
Debt to debt plus shareholders' equity (%) 46.4 35.6
---------------------------------------------------------------------------------------------------------------------------
Net tangible asset coverage on long-term debt (times)
Before deduction of future income taxes 2.6 3.3
---------------------------------------------------------------------------------------------------------------------------
After deduction of future income taxes 2.1 2.7
---------------------------------------------------------------------------------------------------------------------------
twelve months ended September 30
Debt to cash flow provided from operations (times) 2.0 2.3
---------------------------------------------------------------------------------------------------------------------------
Interest coverage on long-term debt (times)
Net income 6.2 4.0
---------------------------------------------------------------------------------------------------------------------------
Cash flow from operations 10.0 7.3
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
Media and Investor Inquiries: For more information about Suncor Energy,
John Rogers (403) 269-8670 visit our website at: www.suncor.com
<PAGE>
11 S U N C O R E N E R G Y I N C. - T H I R D Q U A R T E R 2 0 0 0
Notes to the Consolidated Financial Statements
(unaudited)
1. ACCOUNTING POLICIES
These financial statements follow the same accounting policies and methods of
computation as, and should be read in conjunction with, the most recent annual
financial statements except as described in note 5.
2. WRITE DOWN OF OIL SHALE ASSETS
During the third quarter, the company announced plans to resolve operational
issues and improve performance at its oil shale project in Australia. These
plans could require expenditures in the range of $13 million to $22 million
during the next six months. Also included in these plans is a third quarter
write down of the carrying value of the oil shale project in the amount of $125
million. The impact of this charge to expense is to decrease net earnings by $80
million.
3. RESTRUCTURING CHARGE
During the second quarter, the company announced the approval, by the Board of
Directors, of a new strategy designed to deliver profitable and sustainable
growth in its Natural Gas business by capitalizing on opportunities to
strengthen its competitive position, lower costs and improve its return on
capital. As a result of initiating the first phase of the strategy, the carrying
value of certain assets was written down to their estimated fair market value
and a provision for estimated restructuring costs, including those associated
with employee terminations, was recorded. The impact of these charges to expense
is to decrease net earnings by $20 million after income tax credits of $23
million. There have been no material adjustments during the third quarter to the
above estimates. Any future adjustments would be recorded as they are
identified.
During the third quarter, completion of the re-positioning of the
company's Natural Gas business has resulted in the recording of a further
provision for restructuring costs in the amount of $22 million. The impact of
these charges is to decrease net earnings by $10 million.
4. START-UP EXPENSES
Start-up expenses represent pre-operating costs incurred in the commissioning of
the company's Oil Sands Project Millennium.
5. ADOPTION OF NEW ACCOUNTING STANDARDS
a) Employee future benefits
Effective January 1, 2000, the company adopted new recommendations issued by the
Accounting Standards Board of the Canadian Institute of Chartered Accountants
for the recognition, measurement and disclosure of the cost of employee future
benefits. Under this standard, a liability and an expense is recognized for all
employee future benefits in the reporting period in which an employee has
provided the service that gives rise to the benefits. The recommendations were
adopted in a manner that produces accrued benefit asset or obligation and
expense amounts for all of its benefit plans that are the same as those
determined by application of accounting principles generally accepted in the
United States.
The new recommendations, which will not affect the company's cash flows or
liquidity, have been adopted retroactively and prior periods' results have
been restated. As a result, retained earnings were decreased by $34 million,
accrued liabilities and other were increased by $57 million and future income
taxes were decreased by $23 million at January 1, 2000. The impact of the new
recommendations for the nine months ended September 30, 2000 was to increase
operating, selling and general expenses by $10 million and decrease net
earnings by $6 million (1999 - increase operating, selling and general
expenses by $18 million and decrease net earnings by $11 million).
b) Income taxes
Effective January 1, 2000, the company adopted new recommendations issued by the
Accounting Standards Board of the Canadian Institute of Chartered Accountants
dealing with the accounting for income taxes. This standard requires the use of
the asset and liability method for computing future income taxes. Under this
method, future income taxes are recognized based on differences between the book
and tax values of assets and liabilities. Future income tax assets and
liabilities are measured using the tax rates and tax laws expected to apply when
those differences are settled in the future. The effect on future income tax
assets and liabilities of a change in tax rates is included in net earnings in
the year in which the change to the future tax liability is made. Material
changes in tax rates could result in volatility in net earnings in the periods
affected. Previously, the company followed the deferral method of accounting for
income taxes, which was based on differences in the timing of reporting income
and expenses in financial statements and tax returns.
The new recommendations, which will not affect the company's cash flows or
liquidity, have been adopted retroactively without restating prior periods.
The cumulative effect at January 1, 2000 is to decrease future income taxes
and increase retained earnings by $57 million.
The effective income tax rate for the nine months ended September 30, 2000
was 43% reflecting a non-cash credit of $7 million resulting from the
revaluation of future income tax balances. This revaluation reflects the
substantive enactment of reductions in income tax rates this year.
6. COMPARATIVE FIGURES
In addition to the restatement of prior periods' results for comparative
purposes identified in note 5, adoption of the new accounting standards has
resulted in changes to prior periods' capital employed, return on capital
employed, affected ratios and indicators, and certain per common share
calculations.
The 1999 common share price and number of common shares and common share
options outstanding, as well as net earnings, cash dividends, cash flow from
operations and book value per common share, have been changed to reflect the
two-for-one split of the company's common shares during the second quarter of
2000.
7. SUPPLEMENTAL INFORMATION
<TABLE>
<CAPTION>
($ millions) 2000 1999
---------------------------------------------------------
<S> <C> <C>
NINE MONTHS ENDED SEPTEMBER 30
Interest paid 81 54
---------------------------------------------------------
---------------------------------------------------------
Income taxes paid 15 --
---------------------------------------------------------
---------------------------------------------------------
Interest expense
Long-term interest cost 78 52
Capitalized interest (72) (28)
---------------------------------------------------------
6 24
---------------------------------------------------------
THIRD QUARTER
Interest paid 37 22
---------------------------------------------------------
Income taxes refunded (1) (7)
---------------------------------------------------------
Interest expense
Long-term interest cost 26 16
Capitalized interest (26) (11)
---------------------------------------------------------
- 5
---------------------------------------------------------
---------------------------------------------------------
</TABLE>
Media and Investor Inquiries: For more information about Suncor Energy,
John Rogers (403) 269-8670 visit our website at: www.suncor.com
<PAGE>
12 S U N C O R E N E R G Y I N C. - T H I R D Q U A R T E R 2 0 0 0
Schedules of Segmented Data
(unaudited)
<TABLE>
<CAPTION>
($ millions) 2000 1999 2000 1999 2000 1999 2000 1999 2000 1999
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
EARNINGS
nine months ended September 30
REVENUES
Sales and other operating revenues 422 325 157 101 1,880 1,243 - - 2,459 1,669
Intersegment revenues 590 279 120 117 - - (710) (396) - -
Interest - - - - - - 2 3 2 3
---------------------------------------------------------------------------------------------------------------------------------
1,012 604 277 218 1,880 1,243 (708) (393) 2,461 1,672
EXPENSES
Purchases of crude oil and products 2 4 - - 1,278 736 (705) (385) 575 355
Operating, selling and general 336 276 53 65 218 196 40 34 647 571
Exploration - - 41 28 - - - - 41 28
Royalties 73 33 61 29 - - - - 134 62
Taxes other than income taxes 9 7 3 3 257 236 - - 269 246
Depreciation, depletion and amortization 170 124 60 68 41 39 - - 271 231
(Gain) loss on disposal of assets - 2 (148) (36) (1) - - - (149) (34)
Write down of oil shale assets - - - - - - 125 - 125 -
Restructuring - - 65 - - - - - 65 -
Start-up expenses - Project Millennium 10 - - - - - - - 10 -
Interest - - - - - - 6 24 6 24
---------------------------------------------------------------------------------------------------------------------------------
600 446 135 157 1,793 1,207 (534) (327) 1,994 1,483
---------------------------------------------------------------------------------------------------------------------------------
EARNINGS (LOSS) BEFORE INCOME TAXES 412 158 142 61 87 36 (174) (66) 467 189
Income taxes (165) (64) (75) (25) (29) (16) 68 30 (201) (75)
---------------------------------------------------------------------------------------------------------------------------------
NET EARNINGS (LOSS) 247 94 67 36 58 20 (106) (36) 266 114
---------------------------------------------------------------------------------------------------------------------------------
CAPITAL EMPLOYED
as at September 30 1,366 1,277 462 714 445 482 (7) (109) 2,266 2,364
---------------------------------------------------------------------------------------------------------------------------------
twelve months ended September 30
RETURN ON AVERAGE CAPITAL EMPLOYED (%) 24.1 12.9 12.3 6.1 14.1 5.6 - - 14.8 8.2
---------------------------------------------------------------------------------------------------------------------------------
RETURN ON AVERAGE CAPITAL EMPLOYED (%)* 12.1 7.8 12.3 6.1 14.1 5.6 - - 9.0 5.9
---------------------------------------------------------------------------------------------------------------------------------
CASH FLOW BEFORE FINANCING ACTIVITIES
nine months ended September 30
CASH PROVIDED FROM (USED IN)
OPERATING ACTIVITIES:
Cash flow provided from
(used in) operations
Net earnings (loss) 247 94 67 36 58 20 (106) (36) 266 114
Exploration expenses
Cash - - 10 10 - - - - 10 10
Dry hole costs - - 31 18 - - - - 31 18
Non-cash items included in earnings
Depreciation, depletion and
amortization 170 124 60 68 41 39 - - 271 231
Future income taxes 153 60 74 24 4 (17) (68) (25) 163 42
Current income tax provision
allocated to Corporate 12 4 1 1 25 33 (38) (38) - -
(Gain) loss on disposal of assets - 2 (148) (36) (1) - - - (149) (34)
Write down of oil shale assets - - - - - - 125 - 125 -
Restructuring - - 56 - - - - - 56 -
Other 3 - 2 4 6 1 (8) 4 3 9
Overburden removal outlays (34) (39) - - - - - - (34) (39)
Overburden removal outlays -
Project Millennium (12) - - - - - - - (12) -
Increase (decrease) in deferred
credits and other (3) 2 1 (1) - 1 14 16 12 18
---------------------------------------------------------------------------------------------------------------------------------
Total cash flow provided from
(used in) operations 536 247 154 124 133 77 (81) (79) 742 369
Decrease (increase) in operating
working capital (151) 12 42 9 (17) (11) 42 66 (84) 76
---------------------------------------------------------------------------------------------------------------------------------
Total cash flow provided from
(used in) operating activities 385 259 196 133 116 66 (39) (13) 658 445
---------------------------------------------------------------------------------------------------------------------------------
CASH PROVIDED FROM (USED IN)
INVESTING ACTIVITIES:
Capital and exploration expenditures (1,328) (592) (95) (127) (30) (18) (10) (35) (1,463) (772)
Deferred maintenance
shutdown expenditures (1) (23) - - (9) - - - (10) (23)
Deferred outlays and other
investments (5) (7) - - (6) (1) 1 (1) (10) (9)
Proceeds from disposals 101 1 314 90 2 - - - 417 91
---------------------------------------------------------------------------------------------------------------------------------
Total cash provided from (used in)
investing activities (1,233) (621) 219 (37) (43) (19) (9) (36) (1,066) (713)
---------------------------------------------------------------------------------------------------------------------------------
NET CASH SURPLUS (DEFICIENCY) BEFORE
FINANCING ACTIVITIES (848) (362) 415 96 73 47 (48) (49) (408) (268)
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* The company's definition of capital employed excludes capitalized costs
related to major projects in progress. If capital employed were to include
these capitalized costs, the return on average capital employed would be as
stated on this line.
Media and Investor Inquiries: For more information about Suncor Energy,
John Rogers (403) 269-8670 visit our website at: www.suncor.com
<PAGE>
13 S U N C O R E N E R G Y I N C. - T H I R D Q U A R T E R 2 0 0 0
Schedules of Segmented Data
(unaudited)
<TABLE>
<CAPTION>
Corporate and
Oil Sands Natural Gas Sunoco Eliminations Total
------------- ------------ ------------- ------------- -------------
($ millions) 2000 1999 2000 1999 2000 1999 2000 1999 2000 1999
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
EARNINGS
Third quarter
REVENUES
Sales and other operating revenues 140 121 62 40 659 477 - - 861 638
Intersegment revenues 196 119 43 39 - - (239) (158) - -
Interest - - - - - - 1 1 1 1
---------------------------------------------------------------------------------------------------------------------------------
336 240 105 79 659 477 (238) (157) 862 639
EXPENSES
Purchases of crude oil and products - 1 - - 451 297 (239) (153) 212 145
Operating, selling and general 111 105 16 27 72 64 12 12 211 208
Exploration - - 6 8 - - - - 6 8
Royalties 23 14 25 12 - - - - 48 26
Taxes other than income taxes 4 2 1 1 89 81 - - 94 84
Depreciation, depletion and amortization 57 44 19 21 15 13 - - 91 78
Gain on disposal of assets - - (74) (25) - - - - (74) (25)
Write down of oil shale assets - - - - - - 125 - 125 -
Restructuring - - 22 - - - - - 22 -
Start-up expenses - Project Millennium 10 - - - - - - - 10 -
Interest - - - - - - 6 5 6 5
---------------------------------------------------------------------------------------------------------------------------------
205 166 15 44 627 455 (96) (136) 751 529
---------------------------------------------------------------------------------------------------------------------------------
EARNINGS (LOSS) BEFORE INCOME TAXES 131 74 90 35 32 22 (142) (21) 111 110
Income taxes (55) (31) (47) (15) (13) (10) 54 16 (61) (40)
---------------------------------------------------------------------------------------------------------------------------------
NET EARNINGS (LOSS) 76 43 43 20 19 12 (88) (5) 50 70
---------------------------------------------------------------------------------------------------------------------------------
CASH FLOW BEFORE FINANCING ACTIVITIES
Third quarter
CASH PROVIDED FROM (USED IN)
OPERATING ACTIVITIES:
Cash flow provided from
(used in) operations
Net earnings (loss) 76 43 43 20 19 12 (88) (5) 50 70
Exploration expenses
Cash - - 3 2 - - - - 3 2
Dry hole costs - - 3 6 - - - - 3 6
Non-cash items included in earnings
Depreciation, depletion
and amortization 57 44 19 21 15 13 - - 91 78
Future income taxes 51 29 47 14 1 (13) (57) (12) 42 18
Current income tax provision
allocated to Corporate 4 2 - 1 12 23 (16) (26) - -
Gain on disposal of assets - - (74) (25) - - - - (74) (25)
Write down of oil shale assets - - - - - - 125 - 125 -
Restructuring - - 21 - - - - - 21 -
Other - - 1 2 3 - (10) 1 (6) 3
Overburden removal outlays (15) (14) - - - - - - (15) (14)
Project Millennium (12) - - - - - - - (12) -
Increase (decrease) in deferred
credits and other (5) - 1 (2) (1) 2 6 9 1 9
---------------------------------------------------------------------------------------------------------------------------------
Total cash flow provided from
(used in) operations 156 104 64 39 49 37 (40) (33) 229 147
Decrease (increase) in operating
working capital 14 66 (12) 4 (13) (11) 16 36 5 95
---------------------------------------------------------------------------------------------------------------------------------
Total cash provided from
(used in) operating activities 170 170 52 43 36 26 (24) 3 234 242
---------------------------------------------------------------------------------------------------------------------------------
CASH PROVIDED FROM (USED IN)
INVESTING ACTIVITIES:
Capital and exploration expenditures (475) (284) (22) (34) (13) (10) 3 (13) (507) (341)
Deferred maintenance
shutdown expenditures - (1) - - (1) - - - (1) (1)
Deferred outlays and other
investments 4 - - - - - - (1) 4 (1)
Proceeds from disposals - - 113 44 1 - - - 114 44
---------------------------------------------------------------------------------------------------------------------------------
Total cash provided from (used in)
investing activities (471) (285) 91 10 (13) (10) 3 (14) (390) (299)
---------------------------------------------------------------------------------------------------------------------------------
NET CASH SURPLUS (DEFICIENCY) BEFORE
FINANCING ACTIVITIES (301) (115) 143 53 23 16 (21) (11) 156 (57)
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Media and Investor Inquiries: For more information about Suncor Energy,
John Rogers (403) 269-8670 visit our website at: www.suncor.com
<PAGE>
14 S U N C O R E N E R G Y I N C. - T H I R D Q U A R T E R 2 0 0 0
QUARTERLY OPERATING SUMMARY
(unaudited)
<TABLE>
<CAPTION>
For the quarter ended Nine months ended Total year
SEPT 30 June 30 Mar 31 Dec 31 Sept 30 SEPT 30 Sept 30
2000 2000 2000 1999 1999 2000 1999 1999
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
OIL SANDS
PRODUCTION (a) 114.2 116.7 114.8 113.2 101.5 115.3 103.1 105.6
SALES (a)
light sweet crude oil 61.4 64.3 67.7 62.8 52.1 64.4 49.3 52.7
diesel 8.9 8.6 8.7 9.5 8.4 8.7 7.7 8.2
light sour crude oil 42.6 45.2 41.5 35.1 47.5 43.2 43.5 41.3
---------------------------------------------------------------------------------------------------------------------------------
112.9 118.1 117.9 107.4 108.0 116.3 100.5 102.2
---------------------------------------------------------------------------------------------------------------------------------
AVERAGE SALES PRICE (b)
light sweet crude oil 36.21 33.54 34.35 30.81 27.23 34.68 24.02 26.06
other (diesel and light sour crude oil) 27.84 28.22 28.46 25.91 21.45 28.17 20.18 21.48
total 32.39 31.12 31.84 28.77 24.24 31.78 22.07 23.84
total* 43.41 39.40 39.19 33.72 27.56 40.64 23.07 25.89
CASH OPERATING COSTS (1),(c) 14.50 12.20 11.10 11.15 12.35 12.55 11.90 11.70
TOTAL OPERATING COSTS (2),(c) 18.55 16.60 15.50 15.10 15.30 16.85 15.05 15.05
NATURAL GAS
GROSS PRODUCTION**
Conventional
crude oil (a) *** 3.6 3.5 8.1 7.9 8.4 5.1 9.6 9.2
natural gas liquids (a) 2.8 3.1 3.5 4.0 4.1 3.1 4.3 4.2
natural gas (d) 200 195 222 219 231 206 228 226
total (e) 26.4 26.1 33.8 33.8 35.6 28.8 36.7 36.0
AVERAGE SALES PRICE
crude oil - conventional (b) 33.09 30.04 26.30 25.21 20.55 28.79 19.76 20.94
crude oil - conventional (b)* 42.31 38.65 38.23 32.72 28.01 39.31 21.61 24.01
natural gas liquids (b) 39.56 32.80 33.16 27.12 22.81 34.94 16.91 19.32
natural gas (f) 4.63 3.70 2.96 2.96 2.48 3.74 2.27 2.44
natural gas (f)* 4.62 3.70 2.97 3.11 2.58 3.74 2.28 2.48
NET WELLS DRILLED
Conventional - exploratory **** 1 9 2 10 6 12 9 19
- development 5 6 4 4 1 15 3 7
--------------------------------------------------------------------------------------------------------------------------------
6 15 6 14 7 27 12 26
--------------------------------------------------------------------------------------------------------------------------------
SUNOCO
REFINED PRODUCT SALES (g)
Transportation fuels
Gasoline - retail ***** 4.2 4.2 4.0 4.3 4.0 4.1 4.1 4.1
- other 4.1 4.2 3.8 3.8 3.8 4.0 3.7 3.7
Jet fuel 1.1 1.0 1.1 0.9 1.2 1.1 1.1 1.1
Other 3.0 3.3 2.8 2.9 2.8 3.1 2.6 2.7
--------------------------------------------------------------------------------------------------------------------------------
12.4 12.7 11.7 11.9 11.8 12.3 11.5 11.6
Petrochemicals 0.3 0.8 0.6 0.8 0.8 0.6 0.7 0.7
Heating oils 0.2 0.3 0.7 0.5 0.1 0.4 0.4 0.4
Heavy fuel oils 0.5 0.6 0.7 0.5 0.4 0.6 0.5 0.5
Other 0.6 0.7 0.6 0.5 0.8 0.6 0.6 0.6
--------------------------------------------------------------------------------------------------------------------------------
14.0 15.1 14.3 14.2 13.9 14.5 13.7 13.8
--------------------------------------------------------------------------------------------------------------------------------
NATURAL GAS SALES (d) 74 78 84 90 87 79 89 89
--------------------------------------------------------------------------------------------------------------------------------
MARGINS (h)
Refining (3) 6.1 6.3 5.4 4.3 4.8 6.0 3.8 4.0
Retail (4) 6.4 6.4 6.8 7.2 6.9 6.5 7.5 7.4
CRUDE OIL SUPPLY AND REFINING
Processed at Suncor refinery (g) 10.7 11.0 11.4 10.2 11.2 11.0 10.8 10.6
Utilization of refining capacity (%) 96 99 102 92 100 99 97 95
--------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Excludes the impact of hedging activities.
** Currently all Natural Gas production is located in the Western Canada
Sedimentary Basin.
*** Before deducting third quarter 2000 Alberta Crown royalty of 0.5
thousands barrels per day (third quarter 1999 - 0.9 thousand barrels
per day).
**** Excludes exploratory wells in progress.
***** Excludes sales through joint venture interests.
(a) thousands of barrels per day
(b) dollars per barrel
(c) dollars per barrel rounded to the nearest $0.05
(d) millions of cubic feet per day
(e) BOE per day
(f) dollars per thousand cubic feet
(g) thousands of cubic metres per day
(h) cents per litre
DEFINITIONS
(1) Cash operating costs - operating, selling and general expenses, crude oil
and products purchases, taxes other than income taxes, start-up expenses and
overburden cash expenditures for the period.
(2) Total operating costs - cash and non-cash operating costs (total Oil Sands
expenses less royalties in Schedules of Segmented Data).
(3) Refining margin - average wholesale unit price from all products minus
average unit cost of crude oil.
(4) Retail margin - average street price of Sunoco branded retail gasoline minus
refining gasoline price.
METRIC CONVERSION
Crude oil, refined products, etc. 1m3 (cubic metre) = approx. 6.29 barrels
Natural gas 1m3 (cubic metre) = approx. 35.49 cubic feet
Media and Investor Inquiries: For more information about Suncor Energy,
John Rogers (403) 269-8670 visit our website at: www.suncor.com
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
SUNCOR ENERGY INC.
Date: October 27, 2000 By: "MICHAEL W. O'BRIEN"
--------------------------------
Michael W. O'Brien
Executive Vice President,
Corporate Development and
Chief Financial Officer
