Suncor Energy Inc T.SU

Debt level

[egee]

It has been noted that SU wants to get to a debt of 9 billion ( as a floor).
other than that debt is locked at a lower rate than today, what could/are the other reasons.  Covenants/ or ratios.   The pundits had talked about the industry deleveraging not sure how to interpret

[Clemxb7]

In general it is better to owe less money than more. Suncor took on some extra debt just to get by in 2020 which is why the stock price tanked although now that and more have already been paid back. I think 9 billion is the floor because it a very manageable number vs cash flow. Also I believe there is no advantage to paying of these bonds early and there could even be a penalty amount due if

[PabloLafortune]

That's basically where they're at now ($3B or so is a current liability, ratio of current assets to C/L is actually ~$1B more favourable at 12/31/2022 than a year prior). Last year they spent $5B on buybacks, reduced debt by $4B and paid $2B something in dividends. Q1 wasn't very good for oil prices, Q2 will be much better it seems, back to normal? Almost. They're also selling

[meritmat]

I would think this year they will max out there buy backs since the tax comes in next year 

[Experienced]

Good summary