Post by
lifeisgood1010 on Jul 05, 2024 8:00am
Serious money spent on NCIB in June 2024,crack spread...
Good morning Z,
Indeed, SU as increase the pace on the NCIB in June.
In the first 2 months of Q2, they bought 9,761,650 shares(average of 4,880,825 / month)
But in June, they ramped it to 5,799,010 shares.
If they were to keep the pace of Q2, they would buy back 4.83% of the shares
If they were to keep the pace of June, they would buy back 5.4% of the shares.
Suncor is doing exactly what they said they would do.
That is : Use the free cash flow to
1-Increase the dividend by 3 to 5% a year
2- Buy back shares
3- Reduce LT debt
4- Invest in capital program to reduce their cost by $10 / barrel
Contrary to many other high paying dividend company, Suncor is earning the dividend they are paying us.
About 1/3 of it is going to NCIB, 1/3 to dividend and the balance to debt repayment and capital
projets to reduce cost.
The wildfire is unfortunate but it is out of Suncor's control.
The fire will eventually get extinguish.This is short term noise.
Looking at the crack spreads, they have been steady in the $30 to $35 CDN range.
This is half the record high but still double the historical norm.
Market index are being pulled by just a bunch of very high multiples stocks.
Suncor and most energy stocks are a safe place to be invested if we were to get a major correction.
In the event of a major correction, Suncor would / could go down but i think they would
perform much better than the majority.
Again,staying long for longer.
Nice weekend to all.