Suncor Energy Plans To Increase 2015 Capital Spending

(RTTNews) - Suncor Energy Inc. (SU.TO, SU) provided its 2015 corporate guidance, which includes capital spending of between C$7.2 billion and C$7.8 billion and planned average production of 540,000 to 585,000 barrels of oil equivalent per day.

"Our production guidance for next year reflects a continued trend of improved reliability and steady growth," said Steve Williams, Suncor president and chief executive officer. "We remain focused on driving down our Oil Sands cash operating costs, underscoring our commitment to creating value for shareholders."

Approximately 55 per cent or up to C$4.3 billion of the 2015 capital spend is expected to go towards growth projects with over C$2.0 billion earmarked for the Oil Sands segment. About 45 per cent or up to C$3.5 billion of Suncor's 2015 capital spend is expected to be allocated towards sustaining capital investments focused on safe, reliable and efficient operations across the company's assets.

The company said it will continue to invest in both its base business and in its key growth projects going forward and would expect to generate free cash flow even with Brent oil prices in the US$80 to US$85 per barrel range.

Suncor also confirmed comments made in its third-quarter release that total production for 2014 is anticipated to be in the low end of its annual guidance range, with Oil Sands operations production slightly below the lower end of the guidance range.