CALGARY, Feb. 10 /CNW/ - Suncor Energy Inc. reports that it has entered
into crude oil hedges for approximately 125,000 barrels per day (bpd) of
production from February 1 through December 31, 2009. These volumes are in
addition to a previously reported option to sell 55,000 bpd at an equivalent
WTI floor price of US$60.00 per barrel for January 1 to December 31, 2009. The
combination of the previous options and new fixed-price hedges provide Suncor
with an equivalent WTI floor price of about US$53.50 for approximately 180,000
bpd of production in 2009.
"These contracts will protect us from some of the downside in crude
market movements this year, while still leaving open the opportunity to
participate in any improvement in crude prices for more than half of our
planned 2009 production," said Rick George, president and chief executive
For the full year 2010, Suncor reports it has entered into crude oil
hedges for an average 50,000 bpd at an equivalent WTI floor price of US$50.00
per barrel and a ceiling price of approximately US$68.00 per barrel. This
program replaces a previously reported 2010 option to sell 55,000 bpd at an
equivalent WTI floor price of US$60.00, which was effectively exited by
selling similar contracts for gross proceeds to Suncor of approximately
Cdn$250 million before tax.
This news release contains forward-looking statements identified by the
words "opportunity", "planned" and similar expressions that address
expectations or projections about the future. Forward-looking statements are
based on Suncor's current goals, expectations, estimates, projections and
assumptions made in light of its experiences and the risks, uncertainties and
other factors related to its business. Assumptions used to develop our outlook
are based on year-to-date performance and management's best estimates for the
remainder of the year. Readers are cautioned that actual results could differ
materially from those expressed or implied as a result of changes to Suncor's
plans and the impact of events, risks and uncertainties discussed in Suncor's
current annual information form/form 40-F, annual and quarterly reports to
shareholders and other documents filed with Canadian securities commissions at
www.sedar.com and the United States Securities and Exchange Commission (SEC)
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.
Suncor Energy (U.S.A.) Inc. is an authorized licensee of the Phillips
66(R) brand and marks in the state of Colorado. Sunoco in Canada is separate
and unrelated to Sunoco in the United States, which is owned by Sunoco, Inc.
For more information about Suncor Energy Inc. please visit our web site
at www.suncor.com .
For further information:
For further information: Investor inquiries: John Rogers, (403)
269-8670; Media inquiries: Shawn Davis, (403) 920-8379