RE:RE:RE:Fort Hills cost 2018 $17 billion SU bought 21.3% $1 billionYour right in saying the impairment charge could be seen as a negative by the market and that the right trading move is out though one might also say this deal in whole is a positive for the company
The impairment will affect earnings though it would only improve returns to investors.
Suncor is going "all in" on Canadian oil and that is something that warms my heart as an investor. That is definitely the right move. Oil permeates our society and creates our wealthy western lifestyles. I wish we could do something about our hydro carbon use though I doubt the world will do much except around the margins. You just get so much bang for your buck with oil and it’s literally in everything.
These environmentalists hate oil though still want their Mexican vacations, fresh produce in January, a reliable car and warm house. That is the paradox. Burning hydrocarbon puts a lot of food on a lot of tables.
Energy is power. You know why Russia has Germany bent over a table? It’s because Germany doesn’t have a Suncor.
Now we have to think in terms of free cash flow per share because the impairment will trash earnings per share. It just shows why earnings per share is an inadequate way to value a company.