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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 production; petroleum refining in Canada and the United States; and the Company’s Petro-Canada retail and wholesale distribution networks (including Canada’s Electric Highway, a coast-to-coast network of fast-charging electric vehicle (EV) stations). The Company is developing petroleum resources while advancing the transition to a lower-emissions future through investments in lower-emissions intensity power, renewable feedstock fuels and projects targeting emissions intensity. The Company also conducts energy trading activities focused primarily on the marketing and trading of crude oil, natural gas, byproducts, refined products and power. It also wholly owns the Fort Hills Project, which is located in Alberta's Athabasca region.


TSX:SU - Post by User

Post by Clemxb7on Oct 05, 2022 10:22pm
396 Views
Post# 35008372

Q3 share buy back drought now over

Q3 share buy back drought now overIt is good news they sold the windfarm. I assumed they built this stuff to appease the environmentalists so somehow they would end up giving it away. 

Between this and sale of the Norway asset that adds to about 1 billion CAD to put towards debt. 

Cash flow for Q1 was $3 billion and Q2 $4 billion. Q3 will be in the middle of that so say $3.5 billion.

We now know Suncor spent (only) ~$1 billion on buybacks Q3 and the dividend costs ~$630 million (per quarter) so they likely have been able to steer 3.5 - 1 - .630 = 1.87 billion towards debt Q3. They just offered to buy back 1.75 billion in debt so that jives.

They owed 15.6 billion as of Q2 and want to get that down to $12 billion before they spend 75% of available funds on buybacks (up from the current 50%). 

So Suncor likely now (Oct 1) owes 15.6 - 1.75 - 1 = ~$12.85 billion. 

If cash flow is 3.5 billion for Q4 (same as Q3) then Suncor will spend $2.02 billion on share buybacks Q4. If they have a similar quarter to Q2 then they will spend similar to what they spent on share buybacks in Q2 and look what the share price did that quarter. 

Anyways the share buyback drought of Q3 is now over.

(from @gugo907)

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