Suncor Energy generates strong earnings and cash flow during second quarter

• Published in: Canada NewsWire p. 1
• Format: Newsletter
• Language: English
• Published: Ottawa PR Newswire Association LLC 03.08.2006
• Subjects: Accounting policies; Boards of directors; Canadian dollar; Capital costs; Cash flow; Cost estimates; Crude oil; Debt management; Diesel fuels; Energy economics; Ethanol; Expansion; GAAP; Income taxes; Natural gas; Oil sands; Operating costs; Petroleum refineries; Production capacity; Regulatory approval; Startups; Tax rates; Alberta

Cash operating costs are sensitive to natural gas prices. The estimate of $18.75 to $19.50 per barrel assumes a natural gas price of US$6.75 per thousand cubic feet (mcf) at Henry Hub. Cash operating costs per barrel are not prescribed by GAAP. This non- GAAP financial measure does not have any standardized meaning and therefore is unlikely to be comparable to similar measures presented by other companies. Suncor includes this non-GAAP financial measure because investors may use this information to analyze operating performance. Accordingly, Suncor will, as part of its management's discussion and analysis, also continue to provide separate cash operating cost calculations for Firebag in-situ operations. This information should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. See "Non-GAAP Financial Measures" in Suncor's 2006 second quarter MD&A. Suncor Energy Inc. is an integrated energy company headquartered in Calgary, Alberta. Suncor's oil sands business, located near Fort McMurray, Alberta, extracts and upgrades oil sands and markets refinery feedstock and diesel fuel, while operations throughout western Canada produce natural gas. Suncor operates a refining and marketing business in Ontario with retail distribution under the Sunoco brand. U.S.A. downstream assets include pipeline and refining operations in Colorado and Wyoming and retail sales in the Denver area under the Phillips 66(R) brand. Suncor's common shares (symbol: SU) are listed on the Toronto and New York stock exchanges. This news release contains forward-looking statements that address goals, expectations or projections about the future. These statements are based on Suncor's current goals, expectations, estimates, projections and assumptions, as well as its current budgets and plans for capital expenditures. Even for projects that are classified as complete, the total project cost is subject to change until all financing adjustments are final; the range of uncertainty for the expansion projects mentioned above is +/- 10%. Some of the forward-looking statements may be identified by words like "focus", "targets", "expected", "plans", "goal", "estimates", "should", "outlook" "continue", "scheduled" and similar expressions. These statements are not guarantees of future performance. Actual results could differ materially, as a result of factors, risks and uncertainties, known and unknown, to which Suncor's business is subject. These could include: changes in general economic, market and business conditions; fluctuations in supply and demand for Suncor's products; fluctuations in commodity prices and currency exchange rates; the impact of stakeholder consultation; the regulatory process; technical issues; environmental issues; technological capabilities; new legislation; the occurrence of unexpected events; Suncor's capability to execute and implement its future plans; and changes in current plans. Further discussion of the risks, uncertainties and other factors that could affect these plans, and any actual results, is included in Suncor's annual report to shareholders and other documents filed with regulatory authorities.