Buffett's Suncor stake may be "turning point" for oil sands stocks

|About: Suncor Energy Inc. (SU)|By:, SA News Editor

Warren Buffett’s new 17.7M-share stake in Suncor (SU +1.7%) could spark investor interest in the battered stocks of Canadian oil sands companies, analysts say.

Canadian Natural Resources (CNQ), Cenovus Energy (CVE) and Imperial Oil (IMO) - with "scale and access to market and cost discipline" - may get a second look from investors as Wall Street reviews oil and gas plays beyond prolific shale plays in their own backyard.

SU produced a record 390K bbl/day in July, and its "new normal" would see output shoot up to 420K, First Energy Capital says.

SU is trading at some of the lowest cash flow multiples and, at 80 years, has one of the longest reserve lives in its peer group.