Suncor Energy Inc. T.SU

Alternate Symbol(s): SU

Energy Oil & Gas Integrated

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

Suncor Energy Inc. > A lot of positives for SU this past quarter

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Post by Clemxb7on Apr 28, 2021 5:04pm

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Post# 33087204

A lot of positives for SU this past quarter

Crack Spreads were up by almost 3x Q1/Q4.
WTI averaged $58/barrel Q1 (same as 2019) (WTI averaged just under $40 Q4)
WCS was also up roughly the same in % terms over q4 2020.
WTI is currently $63.63 (Q2) 10% higher than Q1
Improving exchange rates on US debt
no long term outages

I certainly can understand SU's focus on buying back shares sub $25 (CAD) it's quite a bit of bang for your buck. However when guidance said they would favour buybacks and debt retirement over dividend increases I doubt management foresaw such huge increases in revenues in just 1 quarter.

The thing that will really improve the stock price IMO is a divy increase. I do believe management will throw investors a bone here because frankly they can do all 3: buyback shares, retire debt and increase the dividend.

All three are positives for investors though most investors focus in on yield and management knows that. There are a lot of loyal pension funds etc. who need some positive news regarding their faith in SU. I think management will oblige and we will see a higher than current yield .Also the overall macro picture for the future is much improved (Vaccines) over the last few months which should give management some confidence they didn’t have a few months ago

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