QuestionsI hope the answers to these questions are within the grasp of the talented group we have here on the SU board.
1) Does SU have any ability to increase production without getting new permits by adding more shifts/equipment/labour. It seems like the company is basically running at full throttle, but could they tap into the pits and/or In Situ to produce more bitumen.
With the WTI/WCS spread growing, I would think that SU would be able to sell all the bitumen they could produce if they had the capacity and could move it to the US
2) SU has a max production rate of about 790,000 bpd and they can refine 440,000 bpd, which leaves the potential to sell about 350,000 bdp of dilbit/SCO to others:
a) is there a market for their product if they could increase production?
b) can SU hedge their production?
i) if so, how far out can they sell
ii) if so, what does the curve look like now
With SU running at full throttle, it is easy to see why the company just wants to keep its head down and produce.
I thought SU should have been buying additional production when the industry was decimated beginning the moment mgmt realized that the momentum was turning and they would be ok.
Now that oil prices are sky high, are there any value plays that SU should be looking at? Surely SU could put their enormous FCF to better use than paying down debt at this point.