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Suncor Energy Inc. T.SU

Alternate Symbol(s):  SU

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

Comment by Experiencedon Dec 13, 2023 11:06pm
102 Views
Post# 35783658

RE:RE:Short term vs Long term

RE:RE:Short term vs Long termOffgrid - great discussion

As for Costa Rica, I never drive a car there for a number of reasons, many of which you mentioned in your post.  I have been a bit north of where you are near Manuel Antonio National Park.

I guess the trouble I have with what you are saying (and others here) is that EV sales have been showing a steady growth trajectory in terms of sales and also in terms of market share of new vehicle sales.  So while, an EV may not work for you and others here right now based on a number of factors, it must for a lot of other people given the sales growth and the actual volume of sales.  

Every new EV sale takes a sliver out of oil demand that would have existed in the absence of EVs particularly since oil is used very little in the production of electricity.  This is why in the energy area, I am still invested in natural gas but not oil.

I also think that it is important to listen to what the market is telling us.  A poster here a few days ago (my apologies for forgetting who and my laziness to dig and find the name) referenced an analysis which suggested that a fair market price for SU based on its metrics is about 35% higher than the current SP.  So the fact that SU has not been valued for a long time at anywhere close to what one would normally expect given its metrics (eg FCF) is a red flag in my books.

As a pragmatic investor, when I see a red flag and see reasons for it then I look elsewhere to put my money.  I don't keep beating my head against the wall and trying to find reasons why it doesn't make sense.

In terms of Obscure's latest post, I have talked about this before.  Both the major grocery stores near my house - Loblaws and Metro have EV charging stations which can charge an EV from 20-80% in the time it takes to grocery shop(I timed it a few times).  AirBnB already has a filter as part of their search engine to list only places to rent with EV charging stations.  Market forces will make this the norm just as it was with the introduction of the internet and wifi many years ago. This is where the world is going like it or not.  

Invest against it at your peril.
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