Capital expenditures increased to $268 million in the first quarter of 2013 from $141 million in the first quarter of 2012, reflecting spending on the major capital projects at Syncrude. More information on the major capital projects is provided in the "Outlook" section of this MD&A.
The increase in regular maintenance capital expenditures in 2013 reflects increased spending on projects to relocate tailings facilities. The increase in capitalized interest costs reflects higher cumulative capital expenditures on qualifying assets.
Contractual Obligations and Commitments
Canadian Oil Sands' contractual obligations and commitments are summarized in the 2012 annual MD&A and include future cash payments that the Corporation is required to make under existing contractual arrangements entered into directly or as a 36.74 per cent owner in Syncrude. There are no significant new contractual obligations or commitments from the 2012 annual disclosure.
Dividends
On April 30, 2013, the Corporation declared a quarterly dividend of $0.35 per Share for a total dividend of approximately $170 million. The dividend will be paid on May 31, 2013 to shareholders of record on May 24, 2013. During the first quarter of 2013, the Corporation paid dividends to shareholders totalling $170 million, or $0.35 per Share.
Dividend payments are set quarterly by the Board of Directors in the context of current and expected crude oil prices, economic conditions, Syncrude's operating performance, and the Corporation's capacity to finance operating and investing obligations. Dividend levels are established with the intent of absorbing short-term market volatility over several quarters. Dividend levels also recognize our intention to fund the current major projects primarily with cash flow from operations and existing cash balances, while maintaining a strong balance sheet to reduce exposure to potential oil price declines, capital cost increases or major operational upsets.
Liquidity and Capital Resources
March 31 December 31As at ($ millions, except % amounts) 2013 2012----------------------------------------------------------------------------Long-term debt(1,2) $ 1,832 $ 1,794Cash and cash equivalents (1,471) (1,553)----------------------------------------------------------------------------Net debt(1,3) $ 361 $ 241--------------------------------------------------------------------------------------------------------------------------------------------------------Shareholders' equity $ 4,537 $ 4,515--------------------------------------------------------------------------------------------------------------------------------------------------------Total net capitalization(1,4) $ 4,898 $ 4,756--------------------------------------------------------------------------------------------------------------------------------------------------------Total capitalization(1,5) $ 6,369 $ 6,309--------------------------------------------------------------------------------------------------------------------------------------------------------Net debt-to-total net capitalization(1,6)(%) 7 5--------------------------------------------------------------------------------------------------------------------------------------------------------Long-term debt-to-total capitalization(1,7)(%) 29 28--------------------------------------------------------------------------------------------------------------------------------------------------------(1) Additional GAAP financial measure.(2) Includes current and non-current portions of long-term debt.(3) Long-term debt less cash and cash equivalents.(4) Net debt plus Shareholders' equity.(5) Long-term debt plus Shareholders' equity.(6) Net debt divided by total net capitalization.(7) Long-term debt divided by total capitalization.
