RE:RE:RE:Chevron buys HessSU would go for alot more than $53B US if a prospective buyer was serious enough to take a run at it at present time..
SU current market cap is $60B CDN, so you would need to add quite the premium on top of that to engage with management.
As for SU "will not be growing", thats just not accurate.
The recent acquisution add 61,000 bbl/day + 741,900 bbl/day reported in Q2 puts it now over 800,000 bbl/day.
Q2 2022 was 720,000 bbl/day and year before that was under 700,000 bbl/day, so they certainly are growing production.
Regardless, focus is on more profitable barrels and returning more cash to shareholders.
Experienced wrote: esifor....there are number of reasons...
1......The SP of a company will relate to the PV of its future income. As I have ementioned before in many posts, on the oil production side, SU will not be growing and at best will simply keep its current production levels constant over time. There is a lot of scope for the acquistion of Hess to increase oil production over time and hence the PV of its future earning will be higher than that of SU.
2...Point 1 is is supported by the fact that SU will not be adding new refineries to its stable of assets and this is further compounded by the potential for EVs to reduce the sales of PC stations over time as there are more EVs on the road.
3...The current Government in Canada is not supportive of the oil industry whereas Guyana is a poor country and its Government is/will be doing whatever it can to create a favourable climate for investment in activities which will raise the standard of living.