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.

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Suncor Energy Inc. > Perspective

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Comment by Bigbear7405on Jul 29, 2021 2:21am

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Post# 33619616

RE:RE:Perspective

I bought at 16$ and low 20s. I am happy with their approach.

Experienced wrote:
Obscure1 wrote: Retail shareholders will hate the Q2 report.

Institutions will love the Q2 report.

The good news in Q2 won't stop the distribution of shares at SU as many of the fund managers are handcuffed by the current environmental movement. However, the strong results may slow down the velocity of their exit.

By now, the disappointment of the 2020 dividend cut will be in the rear view mirror for fund managers. With higher oil prices, and management finally showing signs of having a clear strategic plan, fund managers will be less anxious to hit the sidelines unless they have mandated exit dates.

While the press would have us believe that the energy transition is going to happen overnight, it ain't so.

The fact that SU is taking a leadership role in the green transition will allow a segment of fund managers to buy and another segment to delay or postpone plans to sell.

It wouldn't surprise me at all if Berkshire or any number of other cash flow aggregators begin to compete with SU on the buy side. I hope that SU becomes more aggressive with their NCIB program because their opportunity to purchase undervalued shares won't last forever.

Some here are moaning and dripping about the lack of a dividend increase.The fact of the matter is that company strategy has been laid out in the report.

A big part of the strategy is to buy back more shares. So why on earth would they increase the dividend which mostly would increase the SP and then pay more for the buy back of shares? Clearly mgt has no plans to increase the dividend until they have completed the buyback plan which means that there will not be a dividend increase until next year or possibly even later if they do another NCIB starting in February of next year.

My other overall impression is that the corporate strategy as laid out in the Q2 report is very clear and compared to most companies is among clearest I have seen in years.

For those long suffering shareholders who have a high ACB you have a decision to make as to whether to hold your shares or move on since the SP is unlikely to move up significantly for at least another six months. For recent buyers such as myself, the answer is hold.