Suncor Energy Inc T.SU

The new narrative: Suncor is back

[Obscure1]

The Q3 numbers were impressive.

The company reiterated its commitment to reducing costs, paying down debt, buying back shares, working the ESG angle, and rewarding shareholders by doubling the dividend. 

All good stuff. 

But the real message is that Suncor is BACK.  Back to being a safe place to invest. 

IMO, the key comment was the assurance that the reinstated dividend is sustainable.  

Management of course added a proviso that WTI needs to stay above $55 to protect their keisters but they have to know that they have staked their reputations and thus their careers on the claim.  

Shareholders and the street were unforgiving when SU slashed the dividend in May 2020 as the street has punished the company ever since.  If SU cuts its dividend again in the future,  there is no way that management could survive.

[angelnicky]

Shareholders and the street were unforgiving when SU slashed the dividend in May 2020 , you mean shareholders who were on pension, got to the board on their div

[PabloLafortune]

Not quite. Notwithstanding the very important and consequential day to day operations which I know nothing about and will not comment on, restoring the dividend was only the first step. The next steps are - not necessarily in that order - to materially reduce net debt even if cash, and to invest in conventional natural gas and condensate production. The buyback - esp timing wise - was a mis-step