Suncor Energy Inc T.SU

Compare CNQ to SU

[astockhmm123456]

How can WTI be at  $109.66  and  $ 101.31 and SU shares at only at $40.75!  while CNQ at $76.51 ! CNQ and SU have traded close to parity for decades! Obviously, the purchase of PONY by CNQ at  the very best possible time and conditions was a big time profitable (ie billions taken at
the expense of PONY shareholders) move for CNQ but both dsalute that fact, should be trading at a similar price price per share! At some point SU should catch up at least $35.50 per share! The real question is why it hasn't already moved at that fair price! It makes no sense !

[Experienced]

Actually it makes a lot of sense. There are a lot of reasons that I have documented in past posts but the main one in the current environment is that half of SU's cashflow comes from PetroCanada and this cashflow contribution doesn't change much with higher oil prices whereas all of CNQ's cashflow comes from energy production and so every dollar more in oil prices contributes fully to

[Obscure1]

SU:  750,000 bpd CNQ: 1,300,000 bpd There are other factors of course, but it really is that simple.

[delissio]

Agreed, the production is the main driver. I am also wondering how do they compare in their reserves and is it currently considered in the stock price? Thank you.