Suncor Energy Inc T.SU

Irving Oil…

[newtonboy]

Lots of possibilities here no doubt. The big fish always eat the smaller ones. Wondering if Mr Kruger has renewed his Fishing Licence...


https://www.cbc.ca/amp/1.7125834

[Experienced]

Yes newtonboy....There is a lot of speculation about Irving Oil. IMO there is little doubt that the Irvings want to sell their oil business for a number of reasons. Essentially they have two oil related businesses, the refinery at St John and one small refinery in Ireland, and oil distribution which includes about 900 gas stations and storage terminals.  It would seem to me that SU would be

[Obscure1]

Experienced: Good information and analysis Your point about how the refineries have dropped in value by 50% in the last 5 years was the key point imo.  I disagree with the 50% valuation.  Last fall, Enbridge announced a deal to buy 3 natgas distribution companies in the States from Dominion for US$14 billion.  Included in the deal was 78,000 miles of gas pipelines.  The

[Experienced]

In terms of valuation of the refineries, I was quoting Mikinsey. Your numbers may be accurate. But either way, the point is that the market is valuing refineries at a fraction of what they were even a few short years ago. Conversely, if the Oil Bulls on this Board are correct then a purchase of the Irving refineries would be somewhere between a steal and highway robbery!! That said, I do stand

[lifeisgood1010]

Great find newtonboy, i had forgotten about the Irving strategic review. If the price is right, it would be a good fit for any buyer. Like i wrote previously, we have been in a very high refining profitability margins for the past 3 years. Again this am., cracks spreads are up 36 cents from last night close. Assets value are always corrolated to the future earning outlook not past one. In the