RE:Easiest trade everObscure1 wrote: One of the contributors to this excellent board indicated that SU has bought back 8% of its shares in the past few years. The implication is that less shares will deliver higher earnings.
Experienced has noted in the past that the market views share buybacks as an indicator that a company doesn't have any plans so it simply buys back shares rather than doing nothing.
Here is what ENB has planned:
Enbridge projects The projects listed by ENB include bringing about $6 billion of projects online in 2024 (ie, delivering additional cash flow) and another $17 billion in 2025. Those numbers don't include the additional $19 billion of CAPEX that ENB expects to close in 2024 via its acquisition of 3 gas distribution companies from Dominion.
ENB has demonstrated an outstanding ability to bring projects online and on time and on budget and to then improve the returns on the projects over time.
ENB has been and continues to diversify away from oil and Canada.
ENB yields 7.7% while SU yields 4.5%. I play ENB via ENS with its 13.3% yield which pays monthly. ENS carries more risk as it is a leveraged Split, but ENS never missed a divi during Covid and the leverage will increase the returns with lower interest rates going forward
SU is currently trading at a higher price than ENB for the first time in 5 years. You can check out the comparison of ENB to SU over the last 5 years here:
Share price comparison of ENB and SU
you have to appreciate that most energy investors these days just want oil/gas companies to strenghten their balance sheet via paying down debt, buy back shares and/or increase dividend. Buying production and reserves are low in priority
Example sentiment from CVE shareholder
They better not do any acquisitions - just stick to the plan and give us all the FCF! Until we have a change of current gov't, canada ain't building any infrastructure due to massive red tapes, over regulation, and long drag out environmental review for everything. Just look at our housing crises, we can't build houses. People outside of canada are puzzled why a country with vast resources and open land have housing shortage.
Buying production is pretty expensive now with 85 brent. No point of SU buying new reserves that have shorter than SU's reserve life.and/or having no synergy. Outlook is clearer when liberal is out. SU can wait it out because of its 20+ years reserve life.