Suncor Energy Inc. T.SU

5 to 10 % drop tomorrow on revised production target

[angelnicky]

company's total production range has been revised from 750,000 bbls/d - 790,000 bbls/d to 740,000 bbls/d - 760,000 bbls/d to reflect year to date performance and expected performance for the remainder of the year. 

[bossu]

If so , I add to my position. A 0,47 quartely dividend or $ 1,88 per year is 4,7 % yield ! Better than a CPG and the strategy would be to add on weakness !

[Thor16]

Although they did beat expectations, these are incredibly poor earnings considering.  Even worse is their actual debt levels considering early redemptions.  Someone needs to explain how debt increased quarter over quater (15.2-15.7) net.  LTD lowers 1.1B and debt levels rise.  Will have to figure out why at a later point however first glance earnings quality is poor. 

[Bigbear7405]

Foreign exchange loss. Their debt is in American so as the US dollar goes up so does their debt.

[Thor16]

As does the price of oil.  Someone would have to find or do the exact math but obviously unfavorable trade.

[w8asec]

I think you are correct in that it';s better than CPG... however, I think selling this pig and buying CNQ, CJ, or GXE will be wayyyyyyyyyy better.... they should have given us a special divy.

[Thor16]

From where would they pay that special dividend?  Guidance lowered, costs increasing, debt rising and you want a special dividend paid from......?

[w8asec]

Yes the special divy is for us bag holders of this Q2 (historica)l... not the future quarters... if the future quarters prove special Divy worthy then have at it.

[PabloLafortune]

Had they not bought back any shares at all, the debt target would be reached already and the quarterly dividend would be way higher, perhaps $1.88 per quarter not per year. Of course stock would not be $40 either. The poster who wrote dumb and dumber? Was that a Freudian slip?

[w8asec]

angelnicky, I would liked to have seen unchanged guidance as well... however with that said, you really are a glass 90% empty type aren't you? How can the stock drop 5-10% - It's insignificant at a 3.5% production drop, and not of any real material change... WTI fluctuated more than that today alone. Stop worrying... you'll run out of underwear.

[angelnicky]

marfket doesnt like any downward changes su will pay tomorrow' it is a significant change of cash flow for remaining year with 10 to 30 k barrels less per day, reduction of FCF 90 million to 250 million at 80 dollar oil