While WTI is languishing, we are seeing better spreads for the refiners.
That is one of the reason Suncor is hitting new 12 months high.
Good spreads coupled with good production....
We are in the sweet spot.Not to high to get the politicals excited and at good levels
for the refiners to make good $$$.
Our US neighbors are enjoying low gasoline prices while refiners are making
good spreads
Over the past 17 years(my data collection), spread have been in the mid teens.
This morning,3-2-1 is at $27.03 CDN while 2-1-1 is at $29.21
The beauty about Suncor since R.Kruger took over is their ability to increase
throughput at record levels while bringing down costs and doing that accident free.
Like R. Krugers says "this is the new Suncor".And they are producing free barrels of oil.
It is starting to sink in with money managers.
Another beauty about Suncor is the chasm in term of multiple it trades versus
it's USA peers and against CNQ.
CNQ deserves to trade at a higher multiple we all know that and why.
Suncor may never trade at the same multiple as CNQ, but the difference should/will
shrink with time.
In 14 days, Suncor goes x-div.and i get another 57 cents.
And lastly,Suncor is rewarding investors with decent dividend that are paid out of profits
and huge free cash flow while reducing the debt and buying back shares.
I have been long Suncor for the past few years and the way i see things, i will be long for many more.
The SP will not go up every days/weeks/ months.But it will trend higher based on the
strong fondamentals and the way it is now managed.Suncor is creating value for shareholders
not destroying it.
Thank you M.Kruger.
