SCO PricingReally Suncor has a big advantage with its own refineries and retail network. COS says their barrel it worth a premium to WTI lets just say a 5% premium right now for argurement sake. People should be clamoring to purchase it at WTI prices, instead it trades at a 6 dollars 85 cent discount, what gives. 6.85/82.15= 7.6 percent discount. So SCO is now trading at a 12.6 percent discount to what the product is really worth on a realtive basis to WTI, boast the refiners margin. They are leaving a lot of money on the table, does a no hedging policy also include selling your product at a discount. Management needs to be focused on making the dividend as large as possible and as reliable as possible. Quite focusing on their own benifits, eliminate the high cost managment structure, and creating uncertainity for the shareholders.
Management already has made a Billion dollar blunder with it hedging policy, and now how are they going to address the issue of why their product is selling at a discount to its value. They need to get a premium price for sco and they need it on a reliable basis. Maybe because of their low production history no refiner want to gear up for sco because the delivery has been unreliable.