Elliott Investment Management Sends Letter to the Board of Suncor Energy Inc.

Calls for Board Enhancement, along with Strategic and Management Review

Sees $30 Billion Value Creation Opportunity, a Potential Share-Price Increase of 50% or More

Full Letter and Presentation Available at RestoreSuncor.com

Elliott Investment Management L.P. ("Elliott"), which manages funds that have made an investment representing approximately a 3.4% economic interest in Suncor Energy Inc. (NYSE:SU) (the "Company" or "Suncor"), 1 today sent a letter and presentation to the Board of Directors of Suncor. According to the letter, the purpose of the materials is to outline the right path forward to restore Suncor to its role as a leader of the Canadian energy industry.

Suncor has seen a decline in the exceptional performance that was formerly its hallmark, the letter said, which has led to, among other things, missed production goals, high costs, and safety failures. In particular, shareholders have seen their investment lag behind nearly all large-cap North American oil and gas companies, as Suncor's share price has remained virtually unchanged since early 2019, even as oil prices have climbed to their highest level in almost a decade.

To deliver improved results and restore the confidence that has been lost, Elliott believes the Company must pursue the critical steps detailed in its Restore Suncor plan, including:

Board Enhancements : Add five new independent directors with deep expertise in the Canadian energy industry to refresh governance and oversee the necessary change.
Management Review : An objective review of Suncor's executive leadership by the refreshed board will ensure the right management is in place to deliver excellence in operating and safety performance.
Operations : Overhaul the Company's operational and safety culture, which is critical if Suncor is to regain its place as a top performer. Deliver on the long-promised $2 billion cash flow improvement plan.
Enhanced Capital Return : Increase capital returns from 50% to 80%+ of discretionary cash flow after capex and dividends to provide Suncor's shareholders an industry leading annual cash return yield.
Strategic Review : Explore opportunities to unlock the value of high-multiple assets outside of core Oil Sands business, including a strategic review of retail.

Through realizing the Company's full potential, Elliott believes that the Board can unlock more than $30 billion in value for shareholders, a potential increase of 50% or more from today. Elliott looks forward to engaging with the Board, along with fellow shareholders, as soon as possible.

The letter and presentation can be downloaded at RestoreSuncor.com .

The full text of the letter follows:

April 28, 2022

The Board of Directors
Suncor Energy Inc.
150 – 6 Avenue S.W.
Calgary, Alberta, Canada T2P 3E3
Attn: Chairman Michael Wilson

Dear Michael and Members of the Board:

We are writing to you on behalf of Elliott Associates, L.P., and Elliott International, L.P. (collectively, "Elliott" or "we"), which together have an investment representing approximately a 3.4% economic interest in Suncor Energy Inc. (the "Company" or "Suncor"), ¹ making us one of your largest investors. Elliott is a multi-strategy investment firm founded in 1977 with approximately US$51.5 billion in assets under management. We have a long and successful track record of investing in the energy sector and working with companies to create long-term, sustainable value.

The purpose of this letter and the accompanying presentation is to inform you of our investment and our views on the right path forward for Suncor. We have considerable respect for Suncor, its employees and its history as a pioneer and leader of the Canadian energy industry and broader economy. However, in recent years, the Company has seen a decline in the exceptional performance that was formerly its hallmark.

Suncor now finds itself plagued by repeated operational challenges and safety issues. Our research suggests that missed production goals, high costs, and, tragically, a number of employee fatalities and other safety incidents, all find their roots in a slow-moving, overly bureaucratic corporate culture that appears to have lost the dynamism that not long ago made Suncor the most valuable energy company in Canada . Regaining that dynamic, high-performing culture will require decisive, immediate action from the Company's leadership and a willingness to commit to a new path.

Our investment in Suncor is underpinned by our conviction that, with the right leadership, the Company can restore its prior success. Suncor's integrated oil sands operations are a critical part of the global energy supply, and we believe these assets are dramatically undervalued. We believe the path described below could lead to a Suncor share price of $60 or higher, a roughly $30 billion and 50% increase in shareholder value. ²

We look forward to working with the Board and our fellow shareholders to create a stronger, safer Suncor.

¹ Elliott's economic interest in Suncor consists of both ownership of shares and economic exposure through cash-settled derivatives contracts. Elliott, and its affiliates, may engage in ordinary course trading transactions with its swap counterparties and/or the counterparties' affiliated entities.
² All dollar amounts are stated in Canadian dollars, except where specified; prices as of 4/22/2022

Suncor Today

Suncor can rightfully claim to have pioneered the Canadian oil sands, forging the path that led the industry to where it stands today. Suncor's Base Plant was the first commercially successful, large-scale oil sands project when it came online in 1967, and it was the largest private sector investment in Canadian history at the time. In the years following, Suncor continued to grow and expand its operations, both organically and through well-timed transactions. For almost two decades, from 2000 until as recently as October 2018 , Suncor was the most valuable Canadian energy company by market capitalization and broadly viewed as the industry bellwether.

More recently, however, Suncor has seen its hard-earned reputation undermined by missed production targets, delayed timelines and repeated safety failures that together have left a cloud over the Company's operations.

Safety: Suncor has tragically lost 12 employees and contractors in fatal accidents since 2014, more than all of its closest peers combined over the same period.
Production: For each year during the 2019–2021 timeframe, Suncor has missed the low- end of its upstream production guidance.
Cost targets and free-funds-flow growth: Suncor is still touting the same "Medium- Term" operating cost targets initially announced in February 2018 , now with an expected completion date of 2025. Four years after the original release of those initiatives, analysts have yet to see tangible benefits, and investors remain skeptical.
Dividend: The dividend was cut over 50% in 2020 (later restored), while the Company's leading peer was able to maintain its dividend and increase it in 2021.

This steady pattern of missed expectations has been reflected in Suncor's share-price performance. As Bloomberg put it on April 6 , "Suncor Shares Go from First to Worst in Canada Oil-Sands Boom." Shareholders have seen their investment lag behind nearly all large-cap North American oil and gas companies, as Suncor's share price has remained virtually unchanged since early 2019, even as oil prices have climbed to their highest level in almost a decade.

Returns: Over the last three years, Suncor shares have lagged oil sands peers by an average of 91%, and closest peer Canadian Natural Resources by 137%.
Valuation: Over the same time period, Suncor's relative valuation multiple has gone from a premium to a significant discount.
Perception: The Company that was once the industry leader is now a "show me" story to investors.

It is evident that Suncor's status quo is not working. Our due diligence indicates, however, that meaningful improvement is possible. We have spoken with numerous oil sands industry experts, engaged a leading consulting firm to assess Suncor's operations and the viability of the Company's stated targets, and commissioned a survey of Suncor shareholders to understand investor concerns. The message we received from all of these efforts is clear: Suncor is a large, complex business with high quality assets, but sustainable improvements in long-term performance require the right leadership and culture.

Restore Suncor

Our goal is to restore Suncor to what it once was: the leader of the Canadian energy industry. The key to reaching that goal will be restoring the operating excellence and responsible stewardship that once defined the Company. To deliver these results and restore the confidence that has been lost, we believe the Company must pursue these critical steps:

Board Enhancements : Add five new independent directors with deep expertise in the Canadian energy industry to refresh governance and oversee the necessary change.
Management Review : An objective review of Suncor's executive leadership by the refreshed board will ensure the right management is in place to deliver excellence in operating and safety performance.
Operations : Overhaul the company's operational and safety culture, which is critical if Suncor is to regain its place as a top performer and deliver on the long-promised $2 billion cash flow improvement plan.
Enhanced Capital Return : Increase capital returns from 50% to 80%+ of discretionary cash flow after capex and dividends to provide Suncor's shareholders an industry leading annual cash return yield.
Strategic Review : Explore opportunities to unlock the value of high-multiple assets outside of the core Oil Sands business, including a strategic review of retail.

We believe that implementing these initiatives can reposition Suncor for a new era of industry leadership and make it, once again, the company of choice for investors and employees.

Given that ESG considerations are a critical aspect of the Canadian oil sands industry, it is important to make it clear that Elliott supports Suncor's leading environmental and sustainability efforts in the industry, including the Company's existing plan to spend ~10% of capex ( ~$500 million per year) on carbon-reduction projects. In fact, we believe that a stronger Suncor, improved by the initiatives that we are recommending today, will be better positioned to execute on these important initiatives.

Next Steps

Given the importance of Suncor as an institution and the urgency of the issues at hand, we are making this letter and our related materials available to the public online at RestoreSuncor.com . We believe that transparency about our research, our perspectives and our proposals is best not only for Suncor's shareholders, employees and the communities in which it operates, but also for the Board and management team. This transparency will allow the Board to receive broad-based, well-informed and timely feedback on these ideas, which will enable you to act expeditiously and confidently to address the issues raised.

We suspect that the Board is also frustrated with Suncor's recent performance, and our desire is to work with the Board constructively to realize the vision described above. Successfully effecting change in a business the size and with the complexity of Suncor is no easy task. It will require capable leadership with the right expertise, an acknowledgement of the need for change and a willingness to see that change through. We are confident, however, that significant improvement can be achieved for Suncor shareholders and employees. These improvements will culminate in a more valuable, more sustainable and a safer Suncor ready to succeed for the long-term.

We look forward to engaging with the Board, along with our fellow shareholders, to chart the right path forward for Suncor. We hope that a meeting with the Board can take place as soon as possible, as these issues require immediate attention. To this end, we will make ourselves available to meet with the Board to discuss our views in more detail at your earliest convenience.

Sincerely,

John Pike
Partner

Mike Tomkins
Portfolio Manager

About Elliott

Elliott Investment Management L.P. manages approximately US$51.5 billion of assets. Its flagship fund, Elliott Associates, L.P., was founded in 1977, making it one of the oldest funds under continuous management. The Elliott funds' investors include pension plans, sovereign wealth funds, endowments, foundations, funds-of-funds, high net worth individuals and families, and employees of the firm.

This press release does not constitute a solicitation of a proxy within the meaning of applicable laws, and accordingly, Suncor shareholders are not being asked to give, withhold or revoke a proxy.

Media Contact:

Stephen Spruiell
Elliott Investment Management L.P.
(212) 478-2017
sspruiell@elliottmgmt.com

View original content: https://www.prnewswire.com/news-releases/elliott-investment-management-sends-letter-to-the-board-of-suncor-energy-inc-301535415.html

SOURCE Elliott Investment Management L.P.

View original content: https://www.newswire.ca/en/releases/archive/April2022/28/c2937.html

News Provided by Canada Newswire via QuoteMedia

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SU:CA,SU

BPH Energy Limited Quarterly Activities Report

Perth, Australia (ABN Newswire) - On 2 August 2022 BPH Energy Limited (ASX:BPH) announced that, following its shareholders' meeting on 21 June 2022 at which shareholders voted unanimously to approve an investment in hydrogen technology company Clean Hydrogen Technologies Corporation ("Clean Hydrogen" or "Vendor" or "Borrower"), BPH and its investee Advent Energy Ltd ("Advent" or "Lender"), together the "Purchasers", settled for the acquisition of a 10% interest in Clean Hydrogen for US$1,000,000 ("Cash Consideration") (8% BPH and 2 % Advent).

The Purchasers had a first right of refusal to invest further in Clean Hydrogen to a maximum of a further US$1,000,000 for an additional 10% interest. The Purchasers loaned a further US$950,000 ("Additional Cash Consideration") under this agreement and the Purchasers and Clean Hydrogen have executed a Loan Conversion Agreement, which once implemented, will enable the conversion of the US$950,000 loan into the relevant Subscription Shares Tranche 2, representing the Purchasers further 9.5% interest in Clean Hydrogen. BPH now has an interest of 15.6% and Advent has an interest of 3.9% interest in Clean Hydrogen.

As at the date of this Quarterly Report, the contemplated securities under the Loan Conversion Agreement have not been issued to the Purchasers, however, the Purchasers have an entitlement to these securities under the relevant Loan Conversion Agreement. For the reasons set out below, BPH will seek approval from its shareholders for the proposed issue of shares in Clean Hydrogen to BPH, in satisfaction of a debt owing from Advent energy Limited to BPH (Debt Forgiveness).

The ASX Listings Committee ('LC') considered the application of Listing Rule 10.1 to the proposed Debt Forgiveness. . The LC resolved that ASX would exercise its discretion such that Listing Rule 10.1 applies to the Debt Forgiveness.

In forming this decision, ASX had regard to the following:

1. In March 2022 ASX advised BPH that, should it seek to increase its shareholding in Advent, whether it be by way of maintaining its current percentage interest in the event Advent undertook a capital raising, increasing its percentage interest, or by way of a debt for equity conversion, BPH must approach ASX regarding the potential application of Listing Rule 10.1.5.

2. In December 2023, Advent lodged a disclosure document with ASIC in the form of an Offer Information Statement for its Entitlement Issue which contained disclosure regarding the discharge of funds loaned to it by BPH in exchange for the issue of equity shares in CHT to BPH. BPH did not approach ASX for determination on the application of Listing Rule 10.1.5 to this transaction.

3. In view of ASX having previously advised BPH to approach ASX in relation to any transactions between itself and Advent including any debt to equity conversion, and BPH having failed to do so in this instance, ASX has exercised its discretion to apply Listing Rule 10.1.5 to the issue of CHT shares to BPH in satisfaction of the debt owing to BPH by Advent. The forgiveness of debt may be a transfer in value from BPH to Advent.

ASX has not been provided with sufficient information to conclude there is no possible transfer in value therefore ASX considers that Listing Rule 10.1.5 applies to the debt conversion/forgiveness.

As a result of ASX's decision to exercise its discretion under Listing Rule 10.1, BPH must seek shareholder approval for the Loan Conversion Agreement dated 10 October 2023 that has been executed between itself, Advent and Clean Hydrogen. The Company is in the process of preparing a Notice of Meeting which will be released as soon as possible. The Company anticipates that the shareholder meeting to approve the Loan Conversion will be held in August 2024.

For clarity, BPH will not and has not increased its shareholding in Advent as a result of the Debt Forgiveness.

Clean Hydrogen have issued 760 share options to BPH and 190 share options to Advent, with an exercise price of USD$3,000 each, exercisable immediately, with the option to convert into shares in Clean Hydrogen expiring ten years from the date of issue. During the Quarter BPH exercised 24 of these options by paying Clean Hydrogen a total exercise price of US$72,000.

The parties acknowledge and agree that the Cash Consideration and Additional Cash Consideration shall be used by Clean Hydrogen to design, build, produce and test a reactor that can produce a minimum of 3.2kgs and as high as 15kgs of hydrogen per hour and to submit at least 2 new patents in an agreed geography, relevant to the production of hydrogen from proprietary technology.

Capital

On 13 May 2024 the Company announced a Placement ("Placement") to raise $1 million by the issue of 50,000,000 fully paid ordinary shares at an issue price of $0.02 per share together with a 1 for 2 free listed option, being 25,000,000 listed options with an exercise price of $0.03 each and expiry 30 September 2024. The Placement offer price of $0.02 per share represents a 16.7% discount to BPH's closing price of $0.024 per share on Thursday, 9 May 2024, and a 16.7 % discount to the 10-day VWAP of $0.024 per share.

The Placement proceeds are proposed to be used as follows: (i) $0.75 million - funding for exploration and development of oil and gas investments. (ii) $0.1 million - for working capital, including costs of the offer; and (iii) $0.15 million - funding for Cortical Dynamics. In addition, a total of 12,000,000 listed options with an exercise price of $0.03 each and expiry 30 September 2024 (BHPOB) were issued to the joint Lead Managers (Oakley Capital Partners Pty Limited and Sixty-Two Capital) for the Placement.

Significant activities by the Company's investees' during the June 2024 quarter were as follows:

Advent Energy Limited ("Advent") (BPH 35.8% direct interest)

PEP 11 Permit

Advent Energy Limited's (BPH 35.8% direct interest) 100% subsidiary Asset Energy Pty Ltd is a participant in the PEP11 Joint Venture with partner Bounty Oil and Gas NL (ASX:BUY). PEP 11 interests are:

Advent Energy 85 % / Bounty Oil and Gas 15%

Asset continues to progress the joint venture's applications for the variation and suspension of work program conditions and related extension of PEP-11. This application follows from the fact that in February 2023 a decision by the previous Commonwealth-NSW Joint Authority to refuse the application was quashed by the Federal Court of Australia. Asset has provided additional updated information to the Commonwealth-NSW Joint Authority and the National Offshore Petroleum Titles Administrator ("NOPTA") in relation to its applications.

On 9 October 2023 NOPTA updated their website whereby the NEATS Public Portal Application Tracking has been updated to show Asset Energy's applications' status is now 'Under Assessment'.

The Company understands that the next step in the application process is for the Joint Authority to make its decision on Asset Energy's applications.

While the applications for the variation and suspension of work program conditions and related extension of PEP-11 are being considered by NOPTA, Asset is investigating the availability of a mobile offshore drilling unit to drill the proposed Seablue-1 well on the Baleen prospect which would take approximately thirty-five days to complete. Asset is in communication with drilling contractors and other operators who have recently contracted rigs for work in the Australian offshore.

The Joint Authority decision is a routine administrative decision. Any future authorisation related to drilling will require environmental approvals. Any issues around community or environmental impacts should be transparently managed by the designated independent expert regulator.

Asset have engaged Klarite Pty Ltd (Klarite) to initiate environmental management of the Seablue1 exploration well, due to be drilled in PEP 11, pending the current application for licence variation, suspension and extension (Application), regulatory approvals and rig availability. Klarite are a Perth based turnkey environmental consultancy specialising in offshore development in Australia, who recently prepared a detailed Environmental Approvals Strategy for the Seablue-1 exploration drilling activity for Asset. Due to the critical need for new domestic supplies of gas as stated in the Federal Government's Future Gas Strategy (see below), Asset have decided to commence work necessary for environmental approvals in advance of the PEP 11 licence Application approval, in order to be prepared to drill the Seablue-1 well as soon as possible thereafter. Klarite will develop an Environmental Management process which will define Asset's consultation and negotiation basis with relevant persons and assess environmental impacts.

The Federal Government Future Gas Strategy (FGS) and supporting documents were released by Minister for Resources Madeleine King on 9 May 2024. The FGS confirms that that gas will have a role to play in the transition to net zero by 2050 and beyond. The FGS states that exploration and development should focus on optimising discoveries and infrastructure in producing basins where gas will be proximal to where it is needed and will be lower cost than relying on LNG imports.

Offshore gas exploration in Australia has been undertaken safely and environmentally responsibly for more than 50 years.

The fact remains that NSW and Australia more broadly face a gas supply shortfall within the next three years, and gas will play a vital role in the clean energy transition.

PEP-11 continues in force and the Joint Venture is in compliance with the contractual terms of PEP11 with respect to such matters as reporting, payment of rents and the various provisions of the Offshore Petroleum and Greenhouse Gas Storage Act 2006 (Cth).

RL1 (Norther Territory)

On 3 May 2024 the Company announced that Advent has been offered a renewal of Retention Licence 1 (RL1) by the Northern Territory Government for a five-year term which it has accepted.

Advent, through its wholly owned subsidiary Onshore Energy Pty Ltd, holds a 100 % interest in RL1 and is operator of the Retention Licence in the onshore Bonaparte Basin in northern Australia. The Bonaparte Basin is a highly prospective, petroliferous basin, with significant prospective potential for reserves of oil and gas. Most of the basin is located offshore, covering 250,000 square kilometres, compared to just over 20,000 square kilometres onshore and is recognized as one of Australia's most prolific offshore hydrocarbon producing basin (after the Northern Carnarvon and Gippsland basins). Retention Licence RL1 in the Northern Territory is 166 square kilometres in area and covers the Weaber Gas Field, originally discovered in 1985.

Cortical Dynamics Limited ("Cortical") (BPH 16.4% direct interest)

Investee Cortical Dynamics Limited is an Australian based medical device neurotechnology company that is developing BARM(TM), an industry leading EEG (electrical activity) brain function monitor. BARM(TM) is being developed to better detect the effect of anaesthetic agents on brain activity under a general operation, aiding anaesthetists in keeping patients optimally anaesthetised, and complemented by CORDYAN(TM) (Cortical Dynamics Analytics), a proprietary deep learning system/App focusing on anaesthesiology.

The Australian manufactured and designed, electroencephalographically based (EEG-based), BARM(TM) system is configured to efficiently image and display complex information related to the clinically relevant state of the brain. When commercialized the BARM(TM) system will be offered on a stand-alone basis or integrated into leading brand operating room monitors as "plug and play" option.

There were no significant activities in Cortical to report during the Quarter.

Item 1 and 2 details of payments to / receipts from related parties (Appendix 4C)

Line 6.1 outflow of $59,000: $29,470 paid to directors as remuneration and net $29,958 fees paid to Grandbridge Limited.

Line 6.2 outflow of $801,000: Loans to the following companies:
Advent Energy Limited $405,000 paid
Cortical Dynamics Limited: $400,000 paid
Grandbridge Limited: $4,000 received

*To view the full Quarterly Report, please visit:
https://abnnewswire.net/lnk/KQ75D046

About BPH Energy Limited:

BPH Energy Limited (ASX:BPH) is an Australian Securities Exchange listed company developing biomedical research and technologies within Australian Universities and Hospital Institutes.

The company provides early stage funding, project management and commercialisation strategies for a direct collaboration, a spin out company or to secure a license.

BPH provides funding for commercial strategies for proof of concept, research and product development, whilst the institutional partner provides infrastructure and the core scientific expertise.

BPH currently partners with several academic institutions including The Harry Perkins Institute for Medical Research and Swinburne University of Technology (SUT).

Source:
BPH Energy Limited

News Provided by ABN Newswire via QuoteMedia

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Elliott Investment Management Sends Letter to the Board of Suncor Energy Inc.

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