Suncor Energy Cuts Oil Sands Production Guidance for 2016

Suncor Energy (TSX:SU,NYSE:SU) announced its 2016 corporate guidance for 2016, which includes an average production of 525,000 to 565,000 barrels of oil equivalent per day and a capital spending program between $6.7 to $7.3 billion.
As quoted in the press release:

The guidance includes projected Suncor oil sands cash operating costs per barrel (excluding Syncrude)⁽¹⁾ of $27.00 to $30.00, continuing a multi-year trend that has seen Suncor reduce its oil sands cash costs by over 25 per cent since 2011.
Approximately 55 per cent of the 2016 capital spending program has been allocated towards growth projects, the vast majority of which are in the Upstream segment. Approximately 45 per cent of Suncor’s 2016 capital spend is expected to be directed towards sustaining capital investments that support safe, reliable and efficient operations.
Suncor’s 2016 budget incorporates flexibility to respond quickly to any further deterioration in market conditions. Both capital and operating expenditures can be scaled back to ensure the company continues to live within its means.

Steve Williams, president and CEO of Suncor, commented:

Our oil sands production is expected to be slightly reduced in 2016, versus 2015 as a result of significant planned maintenance activities scheduled at various facilities, including our first five year full turnaround at the U2 upgrader and major maintenance at Firebag. We remain focused on achieving further reliability improvements across our operations. And, we’ll continue to build upon the momentum gained in 2015 in reducing cash costs per barrel at our oil sands operations.

Click here to read the full press release.