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Suncor Energy Inc. T.SU

Alternate Symbol(s):  SU

Suncor Energy Inc. is a Canada-based integrated energy company. The Company's segments include Oil Sands, Exploration and Production (E&P), and Refining and Marketing. Its operations include oil sands development, production and upgrading, offshore oil and gas production, petroleum refining in Canada and the United States and its Petro-Canada retail and wholesale distribution networks, including Canada’s Electric Highway, a coast-to-coast network of fast-charging electric vehicles (EV) stations. Petro-Canada has a network of over 1,800 retail and wholesale locations across Canada, providing customers with a wide variety of fuel and service offerings including low-carbon fuel options. It is developing petroleum resources while advancing the transition to a low-emissions future through investment in power and renewable fuels. It also wholly owns the Fort Hills Project, which is located in Alberta's Athabasca region, approximately 90 kilometers north of Fort McMurray.


TSX:SU - Post by User

Comment by PabloLafortuneon Apr 08, 2021 2:38pm
204 Views
Post# 32957983

RE:RE:RE:Oil anywhere near $55.00 is a dream

RE:RE:RE:Oil anywhere near $55.00 is a dreamSuncor's investor base is/was dividend investors. If they don't restore the dividend to what it was pre-pandemic now that WTI is 50%? higher than the level at which Suncor can afford it, then they're literally be biting the hand that feeds them.

The CFO said the priority is 2/3 reduce debt and 1/3 buyback shares.  IMO the priorities - assuming $60 WTI in 2021 and $35 break-even for sustaining capex and current dividend - should be a) first $10 above $35 WTI - reduce debt ($2.5B) b) next $5 above $45 WTI - restore the dividend ($1.2B) and c) next $10+ above $50 WTI invest - either diversify into ...natural gas and/or buy low on buying out oil sands partners ($2.5B).  While I personally prefer buybacks over dividends (not tax efficient), its the wrong play for SU at this time (Shell already made that mistake, not sure why they wouldn't learn from this).
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