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Suncor sees increased production, C$1B less capex for 2017

Published 11/17/2016, 08:15 AM
Suncor sees increased production, C$1B less capex for 2017
SU
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  • Suncor Energy (NYSE:SU) releases its 2017 capital spending and production outlook, which foresees increased output even as the company plans to cut capex.
  • SU expects average production for 2017 of 680K-720K boe/day, a 13% Y/Y increase at the range's midpoint, while planning a capital spending program of C$4.8B-C$5.2B, ~C$1B less than this year's spending.
  • SU says ~40% of next year's capex is allocated to upstream growth projects, including Fort Hills and Hebron, which are both expected by the end of 2017.
  • Guidance includes 2017 cash operating costs at oil sands operations of C$24-C$27/bbl, below its 2016 forecast of C$25.50-C$27.50; cash operating cost forecast for Syncrude is C$32-C$35/bbl, also below its 2016 forecast of C$37-C$39.


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