Suncor Energy Inc. T.SU

No Divy increase meanwhile Management issued themselves 15m

[Clemxb7]

Now that I have had time to think about it I am quite pissed they ignored long suffering shareholders though took care of themselves.  

Did they buy back shares so that it doesn’t look as bad if they issue new ones?
 
The thing is SU did execute. Costs were way down across the board. Production was up. Profits had a huge bounce back.

I just don’t get the buying back shares thing. I get it - it lessens the float so that the numbers are better over the long term. Thing is SU has been buying back shares for years and all we got was a trip to $14 and now nowhere near back to the $30’s and $40 where so many loyal shareholders are stuck. Share buybacks might pay off over a long term. Dividends fuel stock appreciation because it puts money right in the shareholders pocket right now. Meanwhile people have to fund their retirement. Not everyone can wait ten years for the buybacks to be material. A lot of people have been waiting a long time already.

With the yield at 3% already I’m not sure I see a lot of upside for the share price over the next while. If oil hits $85 it should be good for SU’s bottom line though we now know all that money will go to share buybacks.
 
On the other hand I can’t see much downside either. SU is really solid right now. Not much reason for it to go down except pissed stockholders.

[Chris007]

Well, buybacks max out for the year at 44,000,000 shares. They thus far, they bought back around 12 million in Q1. Fact of the matter is, even if they buy back the whole 44 million shares they are permitted to buy back, theres is still a hell of alot of shares outstanding (share count stood at 1,506,484,194 common shares on April 29, 2021, as per the MD&A)

[Clemxb7]

So they bought back 12 million and issued 15 million stock options. That’s great for management. Actually they have done a good job. Costs are down yada yada. What bugs me is they obviously feel they should be rewarded - after all it was very painful to take that trip to $14. However they weren’t the only ones along for the ride.  I remember the day last year they cut the dividend. The

[thegreattimario]

Yup as far as I'm concerned not raising the divy was a big fu to all investors who have been with them for years.

[Bigbear7405]

Still the right thing to do while the stock price is down. Paying of debt in any aspect makes the company stronger.

[firstworld]

Buybacks while on industrial welfare is a joke while killing people with covid outbreaks is criminal they would all be arrested and detained pending trian in a firstworld country. A total back water operation on par with dredges of Nigerian Delta only the execs of SU live like peasants in comparison....state sponsored environmental destructionist comical. I love O & G and drive a twin turbo

[liljohnnyjoke]

It tells investors that they now have time to invest elsewhere and come back here in about 3 months if they raise the divy in Q2 and get in at right about the same share price as today, maybe even lower $20s if oil pulls back. If you think oil continues to rise then probably better chances of double digit gains with CVE or Meg or CPG etc.

[Chad123]

Maybe, but you don't get the dividend. I own all of them but for different reasons. The one thing in common is higher oil prices will benifit all, some more than others. Meg is probably the best going forward as they are less hedged than most and will benefit greatly from higher oil prices. As for SU paying down debt.....this should be paramount for all companies. They didn't cut the

[liljohnnyjoke]

The management team at IMO was able to both raise the dividend and increase the share buyback program based on better Q1 results. Assume they were able to reward themselves as well so that everyone wins, not just management

[firstworld]

propped up on $100s MNs in welfare divs and options are ajoke say good bye to line 5!