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Fort Hills

Fort Hills

The Fort Hills oil sands mining and processing operation is a long-life, high-quality asset located in the Athabasca region of Alberta.

About Fort Hills

The Fort Hills oil sands mine is located in northern Alberta. We hold a 21.3% interest in the Fort Hills Energy Limited Partnership (Fort Hills Partnership), which owns the Fort Hills oil sands mine, with Total E&P Canada Ltd. (Total) and Suncor Energy Inc. (Suncor) holding the remaining interest. An affiliate of Suncor is the operator of the project.
Our gross profit was $10 million in 2019, compared with a loss of $165 million in 2018, with the improved results primarily due to higher realized prices and sales volumes, and a full year of production following the start-up of operations in 2018. Our gross profit before depreciation and amortization from Fort Hills was $144 million in 2019, compared with a loss of $106 million in 2018.

Our 21.3% share of bitumen production from Fort Hills was 22,875 barrels per day in 2020. This compares to 33,593 barrels per day produced in 2019.

 


Fort Hills Operating Results

Fort Hills (1)

($ in millions)

2020

2019

2018(2)

Blended bitumen price realized (US$/bbl)(3)(4)


$27.99

$45.20

$35.12

Bitumen price realized (CAD$/bbl)(3)(4)

$25.27

$52.21

$32.81

Operating netback (CAD$/bbl)(3)(4)

$(19.03)

$11.85

$(10.95)

Production (million bitumen barrels) 

8.4

12.3

6.8

Production (average barrels per day) 

22,875

33,593

31,955

Sales (million blended bitumen barrels)

11.6

16.0

8.8

Gross profit (loss) before depreciation and amortization(3)(4)

$(223)

$144

$(106)

Gross profit (loss)

$(326)

$10

$(165)

(1) Fort Hills figures presented at our ownership interest of 21.3%.
(2) Fort Hills financial results included from June 1, 2018. 
(3) Non-GAAP Financial Measure. See “Use of Non-GAAP Financial Measures” section for further information.
(4) See “Use of Non-GAAP Financial Measures” section for reconciliation.
Teck

Teck is a diversified resource company committed to responsible mining and mineral development with major business units focused on copper, steelmaking coal and zinc, as well as investments in energy assets.