RE:RE:RE:RE:RE:You all are missing the point I am doing what works for me. I'm holding SU, not so much because i think management is doing a good job, as because the macros for energy, right now are steadily improving. Basically, a rising tide lifts all boats. Add to that, the fact that SU has been a laggard in the recovery, so I think it presents a good value opportunity.
That being said, I think most investors would have liked more emphasis on buybacks (while the share price is low), rather than deleveraging.
topdown99 wrote: Buried in that report (if you read far enough) says they have received clearance from the TSE to start repurchase of shares commencing Feb 8th 2021 . In a perfect world , nobody gets disappointed but this is far from a perfect world . I put my confidence in management and will be watching with great interest . You do what works for you Chris
Chris007 wrote: In regard to the share buybacks, I think that investors were disappointed by the fact that buybacks were put in the backseat while share price is in the lows 20s and deleveraging was prioritized instead. I think people were hoping that the company would do the opposite (ramp up buybacks), especially with the dividend cut still in place:
Suncor will remain disciplined in its capital allocation and, at current commodity prices, plans to pay down between $1.0 billion and $1.5 billion of debt and repurchase between $500 million and $1.0 billion of the company’s shares in 2021, signifying the company’s ability to generate cash flow and confidence in the underlying value of the company. Subsequent to the end of the quarter, the Toronto Stock Exchange (TSX) accepted a notice to commence a normal course issuer bid (NCIB) for up to 44,000,000 common shares.
https://www.globenewswire.com/news-release/2021/02/03/2169485/0/en/Suncor-Energy-reports-fourth-quarter-2020-results.html
topdown99 wrote: prophet and tommy , you keep harping about "futures" and backwardation like these are guaranteed prices . As with everything , those prices can change over a weekend . Furthermore I wonder if anyone actually read the 2020 year end or you are just quoting news article bullet points .
I did read that report and I see a company that has turned the corner . Syncrude (the jewel in the crown) has amped up production to over 500,000 bbl/d and that is the premium product . Whether you call it SSB (Syncrude synthetic blend) or SCO (synthetic crude oil) its the highest quality and receives a premium price . When I first went to work at Syncrude in the early 1990"s , production was about 200,000 bbl/d . Since then they have nearly tripled production . These guys/gals are experts and any problems will always be worked out and over come .
BUT , the most interesting point in that report was the plan to buy (and retire) 44,000,000 shares . Now last year SU's share buy back was held at around $40/sh , at $22/sh they are a screaming deal . As of Feb 8th (Monday) , they have permission to start buying with a daily limit of 2.1 million shares per day . I would expect some supportive buying to start tomorrow as the company looks to maxamize its buying ability and power while taking advantage of this low share price .