RE:Share Repurchases for SuncorHere my point so you don't have to read my whole message. When oil is at $100/barrel Suncor could buy 10,000,000 shares @40/sh (which is .7% of shares out per month), and still have enough free cash after tax, after current dividend, after paying off debt at a rate of $4,000,000,000 per year, and still afford to double the dividend.
I'll state the obvious and say SU definitely has more cash to play with and this information proves it.
Here some food for thought. If Oil stays around $100 a barrel these numbers are good guess-ti-mate
https://stockhouse.com/companies/bullboard?symbol=t.su&postid=34601729
Free cash flow after tax and dividend for the year (2022) could be ~ $11,441,000,000 Or ~$953,416,666 per month. To purchase 10.5 million shares would have cost around $40/sh or $420,000,000.
That leaves $533,416,666 FREE cash left per month, after tax, after dividend and after buying a record amount of shares back. SU liked paying off $ 4,000,000,000 in debt 2021 which is $333,333,333 per month.
Here the point: SU has ~$200,000,000 free cash left over per month with oil at $100 after tax, after, dividend, after, buying back a record amount of shares and paying off debt at a rate of $4,000,000,000 a year. That’s $600,000,000 per quarter extra money. The dividend as it is cost just about $600,000,000 per quarter.
All this from a major hydrocarbon producer situated smack dab in the middle of North America. This company is a major value play. If oil stays at $100 per Suncor is printing money.