Thu, Jan. 22, 11:31 AM
- Suncor (SU -0.3%) CFO Alister Cowan says the company has no plans to delay its biggest long-term projects, convinced that crude oil prices will bounce back to $90-$100/bbl within the next 3-4 years.
- SU is pledging to move ahead with its largest growth projects - the Fort Hills oil sands mine in Alberta and the Hebron oil field offshore Newfoundland - and sees its production rising to as much as 585K boe/day this year from 525K-570K boe/day in 2014.
- Cowan says SU has enough cash on its balance sheet to fund its stakes in both projects through their planned startups in 2017.
- The bullish outlook echoes recent comments by CEO Steve Williams, who also has said oil prices likely will climb back to last summer's levels.
Wed, Jan. 21, 7:11 PM
- Suncor Energy (NYSE:SU) expects Enbridge's (NYSE:ENB) Line 9B crude pipeline to start up towards the end of Q2 2015, according to Suncor CFO Alister Cowan.
- SU is a committed shipper on the pipeline, which will take crude from Sarnia, Ontario, to Montreal, Quebec.
- Line 9B originally was scheduled to start up late last year but ran into delays after Canada's National Energy Board requested data on valve placements on the revamped pipeline.
Thu, Jan. 15, 2:56 PM
- Suncor Energy's (SU -1.6%) decision to cut $1B from its 2015 capital spending program actually came in below what some analysts expected, but continued weak oil prices would force some tough choices - including whether to reduce spending on its Fort Hills and/or Hebron projects, or take on more leverage to keep them moving.
- Desjardins Capital's Justin Bouchard notes that SU’s revised budget is based on oil at $59 but if oil was $50, he estimates SU would generate $4.8B in cash flow, meaning it would be $3.5B short in meeting its $6.5B capex and another $1.6B in dividends.
- But most analysts believe SU's move was prudent, since the company still has room to take on debt to fund existing projects or buy up any cheap assets that pop up given the industry’s weakness.
Tue, Jan. 13, 5:19 PM
- Suncor Energy (NYSE:SU) says it is cutting $1B from its planned 2015 capital budget from earlier projections of $7.2B-$7.8B in capital spending, and make operating expense reductions of $600M-$800M to be phased in over two years, in response to plummeting crude oil prices.
- SU says it will cut 1,000 jobs, primarily through its contract workforce, in addition to reducing employee positions; it also will initiate an overall hiring freeze for roles that are not critical to operations and safety.
- Major projects under construction such as the $13.5B Fort Hills mine in Alberta and the Hebron field offshore Newfoundland will move ahead as planned, but projects that have not yet been given approval, such as the MacKay River 2 oil sands project and the White Rose offshore oil field extension, will be deferred.
- SU says 2015 production guidance for 540K-585K boe/day has not changed.
Tue, Jan. 13, 3:23 PM
- J.P. Morgan's Joseph Allman is “mildly bullish” on oil and gas E&P companies in 2015, as short-term nervousness about the oil market’s oversupply is outweighed by the benefits of low oil prices, declining service costs and a more balanced oil market.
- Allman’s favorite picks among big-cap names are EOG, APC and NBL, among mid-caps are XEC and PXD, plus PDCE in the small-cap space; his least favorite stocks are APA, AREX, GDP and JONE.
- Among majors, JPM analysts Phil Gresh and John Royall initiate SunCor (NYSE:SU) at Overweight, citing "top tier sustainable dividend coverage and leverage, with some underlying growth potential"; the pair also downgrade Cenovus (NYSE:CVE) to Neutral, tags ConocoPhillips with an Underweight rating, and are neutral on Exxon (NYSE:XOM) and Chevron (NYSE:CVX).
- Earlier: Valero Energy upgraded, Marathon Petroleum downgraded at J.P. Morgan
- ETFs: XLE, ERX, VDE, OIH, XOP, ERY, DIG, DUG, IYE, IEO, PXE, FENY, PXJ, RYE, FXN, DDG
Tue, Jan. 13, 12:28 PM
- Canadian Natural Resources' (CNQ +1.1%) pledge to keep spending on expanding output at its biggest oil sands mine regardless of the price of crude shows that Canadian oil sands operators are intent on maintaining their production thanks to huge upfront costs, long-term breakeven points and lengthy production lives, continuing to add to the global oil glut, WSJ reports.
- CNQ said yesterday that it still expects overall output to grow beyond 2014 levels, and that it will continue expanding production because it expects higher volume will cut operating expenses at its Horizon mine - currently C$37.13/bbl - by at least another C$10/bbl.
- Existing oil sands surface mines can make money at ~$30/bbl, and the most efficient underground oil sands projects run by Cenovus Energy (CVE -1%) can stay profitable at $35/bbl, according to the report.
- Suncor (SU +1.9%) CEO Steve Williams said in November that his company’s strong balance sheet would allow it to ride out the turbulence and stick with a bullish growth strategy.
Wed, Jan. 7, 5:35 PM
Mon, Jan. 5, 12:18 PM
- Energy stocks severely underperform the broader market, with the sector -4.2% vs. the S&P 500's -1.4%, as U.S. oil prices briefly slip below $50/bbl for the first time since April 2009; Nymex crude recently was -4.4% at $50.37, while Brent crude -5.9% at $53.08.
- Among the day's biggest losers: DNR -9%, RIG -7.6%, NBR -4.8%, CHK -5.9%, SDRL -9.1%, SD -12.3%, NOV -5.9%, PSX -6.2%, APA -5.9%, DVN -4.4%, EOG -6%, SU -5.2%, OXY -4.2%, APC -8.7%, PWE -9%, ECA -5.5%, MRO -5.3%.
- Global oil majors, which have been seen as less vulnerable to falling oil prices, are posting big losses: XOM -2.7%, COP -4.5%, CVX -3.8%, BP -5.8%, RDS.A -4.6%, TOT -6.5%.
- ETFs: USO, XLE, OIL, UCO, ERX, VDE, OIH, SCO, XOP, ERY, FCG, DIG, PBW, BNO, GASL, DTO, DBO, DUG, IYE, XES, IEO, QCLN, IEZ, UWTI, PXE, USL, PXI, FENY, DWTI, PXJ, DNO, PSCE, RYE, SZO, PUW, FXN, OLO, DDG, HECO, TWTI, OLEM
Fri, Jan. 2, 2:30 PM
- As many as 16 oil sands’ projects worth nearly $60B that have not yet received corporate sanctioning may be deferred if current oil prices persist, according to upstream research analysts at Wood Mackenzie.
- Key projects the firm expects to come on line by 2017 include the 165K bbl/day Fort Hill venture owned by Suncor (NYSE:SU), Total (NYSE:TOT) and Teck Resources (NYSE:TCK); Canadian Oil Sands' (OTCQX:COSWF) 100K bbl/day Mildred Lake replacement project; Imperial Oil’s (NYSEMKT:IMO) 110K bbl/day Kearl Phase 2; ConocoPhillips' (NYSE:COP) 109K bbl/day Surmont Phase 2; and Shell’s (RDS.A, RDS.B) 100K bbl/day Jackpine expansion.
- Projects expected to face delays include Cenovus Energy’s (NYSE:CVE) Christina Lake Phase H and its Narrows Lake Phase A; expansion work at Husky Energy's (OTCQB:HUSKF) Sunrise SAGD plant; and PetroChina’s (NYSE:PTR) MacKay River project.
- Most analysts expect a 10%-15% drop in capex for Canadian energy producers in 2015, with bigger cuts perhaps coming as the year unfolds to rival 2009's 20% capex decline.
Dec. 16, 2014, 11:44 AM
- Exxon Mobil (XOM +2.1%), Suncor Energy (SU +6.9%) and ConocoPhillips (COP +4.8%) combine to offer $559M for exploration rights in the deepwater Flemish Pass, the largest-ever bid for a license in Canada’s Newfoundland and Labrador province.
- The region is where Statoil last year announced the huge Bay du Nord find, which is estimated to contain up to 600M barrels of light, sweet crude.
Dec. 9, 2014, 5:25 PM
- Canada will not impose new carbon emission rules on its oil and gas sector in a time of falling oil prices, Prime Minister Harper tells the House of Commons as international talks begin in Peru to reach a new global agreement on curbing greenhouse gas emissions.
- Canada’s critical energy sector has been slammed by the recent collapse of world oil prices, and a number of Canadian producers recently have announced plans to cut spending and dividends.
- Harper’s government, which counts the resource-rich western provinces as its core political base, had said it was prepared to work with the U.S. on environmental rules covering the continental oil and gas sector.
- Among Canada's top energy firms: SU, ENB, EEP, EEQ, TRP, IMO, CNQ, TCK, CVE, BTE, OTCQX:COSWF, OTCQB:HUSKF
Dec. 3, 2014, 11:32 AM
- The energy sector (XLE +1.5%) continues its momentum from yesterday, leading the way again as the best performing sector in early trading with crude oil rising 1.2% so far today and reports that U.S. well permits fell 40% last month.
- Top performers include Clayton Williams (CWEI +7.7%), Transocean Partners (RIGP +10.6%), Gaslog (GLOG +13.8%) and Energy XXI (EXXI +15.7%).
- Other leading energy names are showing stronger recoveries as they clear last Friday's bearish gap zone: XOM +0.2%, CVX +0.4%, COP +2.5%, OXY +2.5%, DVN +2.9%, EOG +2.5%, HES +2.2%, MUR +1.5%, NBL +2.3%, PXD +4.2%, SU +3%, CNQ +1.9%.
- Some analysts warn that the worst may not be over, however, as much of the advance is being driven by investors repurchasing ETFs they used to make short bets; investors also could opt to sell oil shares at a loss in coming weeks to reduce tax burdens.
Nov. 19, 2014, 7:49 AM
- Suncor Energy (NYSE:SU) says it plans to boost capital spending next year above 2014 levels, and produce as much as 585K boe despite the recent slide in global crude oil prices.
- SU expects to spend C$7.2B-C$7.8B next year; the higher figure would be unchanged from its initial forecast for 2014 and above the C$6.8B it currently plans to spend this year.
- SU expects to produce 540K-585K boe/day, above the 525K-570K boe/day it estimated for the current year in October, but 25K below the maximum guidance in its initial forecast for 2014.
- Says 2014 production will be at the low end of its latest guidance, with oil sands "slightly below the lower end of the guidance range.”
Nov. 18, 2014, 12:01 AM
Nov. 14, 2014, 1:11 PM
- The Republican-led House passes the Keystone pipeline bill (TRP +0.2%), as expected, with a Tuesday vote upcoming in the Senate, which is still controlled by Democrats until January; if approved there, the bill would go to Pres. Obama, who says more time is needed to study the project.
- A Bloomberg report says the long delays to the pipeline are providing little obstacle to western Canadian oil producers - such as Suncor Energy (NYSE:SU), Imperial Oil (NYSEMKT:IMO) and Canadian Natural Resources (NYSE:CNQ) - in getting their crude to the U.S. Gulf coast, with shipments set to more than double next year.
- “Keystone is kind of old news,” says the director of energy analytics at RBN Energy. “Producers have moved on and are looking for new capacity from other pipelines.”
Oct. 31, 2014, 8:39 AM
- Canadian Oil Sands (OTCQX:COSWF) reports Q3 net profit fell 65% Y/Y to C$0.18/share, citing lower revenue and foreign exchange-related losses.
- Q3 sales volume rose to 87,787 bbl/day, up4% Y/Y, but average crude prices fell to C$102.58/bbl from C$112.55 a year earlier, and operating expenses rose to to C$47.73/bbl, up from $46.15.
- Cuts its annual maximum output target to 100M barrels of oil, down from a previous 104M barrels and an initial forecast of up to 110M barrels.
- Canadian Oil Sands owns a 37% stake in its main operating asset, Syncrude, with six other companies owning the remainder, including lead operator Exxon Mobil (NYSE:XOM) unit Imperial Oil (NYSEMKT:IMO) and Suncor Energy (NYSE:SU).
SU vs. ETF Alternatives
Suncor Energy Inc is an integrated energy company. Its operations include developing petroleum resource basin, Canada's Athabasca oil sands. It explores for, acquires, develops, produces & markets crude oil & natural gas in Canada and internationally.
Other News & PR