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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 May 09, 2023 9:23am
204 Views
Post# 35438204

Better to buy distressed CND O&G assets than share buybacks

Better to buy distressed CND O&G assets than share buybacksFort Hills nameplate is 195 k and cost $18 billion to build so Suncor got both these projects for pennies on the dollar.

Suncor has increased production by around 15% (113k / 750k) with good prospects to signifigantly increase Fort Hills to maneplate like previous to 2020. Suncor will grow revenues by minimum ~10%.

At the average cost of shares in April (~$42.5) that is also $5.5 billion to buyback 10% of shares.

This deal bought decades of resources where buying back shares gives nothing like that. 

The tax pools are worth at least $2 billion though likely more so the purchase cost of Surmont and Fort Hills is more like $2.5 to $3.5 billion.

This deal was actually very good for the future prospects of Su and grew the company by 10%.

Really intersted to see what they say about the deal today.
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