Suncor Energy Inc. (NYSE:SU) Q1 2018 Earnings Conference Call - Preliminary Transcript

May 01, 2018 • 08:00 pm ET

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Suncor Energy Inc. (NYSE:SU) Q1 2018 Earnings Conference Call - Preliminary Transcript

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Presentation
Operator
Operator

Good day, ladies and gentlemen, and welcome to the Suncor Energy First Quarter 2018 Financial Results Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions for how to participate will follow at that time. [Operator Instructions] As a reminder, this conference call is being recorded.

And now, I'd like to introduce your host for today's conference Mr. Steve Douglas, Vice President of Investor Relations. Please go ahead.

Executive
Steve Douglas

Well, thank you, operator, and good morning to everyone. Welcome to the Suncor Energy First Quarter Earnings Call. I have with me here in Calgary this morning Steve Williams, our President and CEO; Mark Little, our Chief Operating Officer; Alister Cowan, EVP and Chief Financial Officer; and also Trevor Bell who is our current Vice President of Tax but the incoming Vice President of Investor Relations with my imminent retirement.

I'd ask you to note that today's comments contain forward-looking information. Actual results may differ materially from expected results because of various risk factors and assumptions and these are described in our first quarter earnings release, as well as our current AIF. And both of these are available on SEDAR, EDGAR and suncor.com.

Certain financial measures referred to in these comments are not prescribed by Canadian GAAP. For a description, please see our first quarter earnings release. After the formal remarks, we'll open the call to questions first from members of the investment community and then if time permits members of the media.

With that, I will hand it over to Steve Williams.

Executive
Steve Williams

Good morning and thank you for joining us. I would like to start by taking a moment to recognize the contributions of Steve who is taking as he describes a well deserved retirement after almost 28 years with Suncor. I mean, Investor Relations has clearly been a genuine strength here at Suncor and Steve's leadership has been greatly appreciated. I would also like to welcome Trevor Bell, who is transitioning into Investor Relations role and I know that he will provide equally strong leadership as we continue to tell the Suncor story to an expanding shareholder base around the world.

So turning to our results, the first quarter of 2018 featured the highest average oil prices since the fourth quarter of 2014. The combination of positive supply/demand fundamentals and global oil inventories finally moved into balance and has begun to shift both industry and I think investor sentiment.

In Canada, the story is complicated by wide light/heavy differentials as a result of increasing market access challenges. And just as an aside, I will cover those differentials later in more detail, but for Suncor it has no impact. Amid all of these developments, I think it's important to come back to the guiding principles that underpin the Suncor story and to remind everyone of the unique advantage that continues to enable our outperformance. And these are constants that will not shift with oil price cycle or investor sentiment.

And as I've