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).
Oct. 30, 2014, 3:49 PM
- Suncor Energy (SU +0.2%) will look regularly at the economics of shipping western Canadian crude through the country's east coast to markets overseas, CEO Steve Williams said in today's earnings conference call.
- Last month, SU sent its first ever tanker of western Canadian crude from the country's east coast to Europe, and earlier this month it also sent a tanker to the U.S. Gulf coast; price differentials between Western Canadian crude and international benchmark grades have since narrowed, making the economics of the journey less attractive.
- Williams did not say whether more vessels were scheduled to be loaded, but said future shipments would depend on whether the economics were favorable.
- SU reported a fall in Q3 earnings due to lower production and weaker commodity prices, but analysts say SU's performance in its downstream sector was strong and that it had reduced costs in its oil sands business.
Oct. 30, 2014, 9:58 AM
- Suncor Energy (SU +0.4%) reported a 46% Y/Y drop in Q3 earnings but the bottom line still easily beat analyst expectations.
- Q3 total production fell 12.7% Y/Y to 519.3K boe/day due to asset sales, maintenance work at some of its operations and lower production from Libya, reflecting the sale of the conventional natural gas business, planned E&P maintenance, and reduced production in Libya.
- However, oil sands output rose 3.8% to a record 411.7K boe/day, as SU cites the full ramp up of Firebag following the commissioning of hot bitumen infrastructure assets in Q3 a year ago.
- SU says benchmark prices for its oil sands bitumen fell 13% Y/Y to $77/bbl.
- Cash flow from operations fell almost 10% to C$2.28B, or C$1.56/share.
- Maintains FY 2014 capital spending guidance at C$6.8B.
Oct. 29, 2014, 11:47 PM
Oct. 29, 2014, 11:28 AM
- Teck Resources' (TCK +2.4%) Q3 earnings tumbled 69% Y/Y, hurt by weak coal prices and a drop in copper production, but results beat analyst expectations, helped in part by improved results from its zinc operations.
- TCK's realized coal sales price in Q3 was US$110/metric ton vs. US$139 in the year-ago period, but unit cash costs in coal were just US$84, consistent with recent quarters, and says all six of its coal mines had positive cash margins.
- Q3 coal production rose 2% Y/Y; coal sales of 6.7M metric tons were the second highest on record for the period and follow record high sales for H1.
- Says construction of the Fort Hills oil sands project in Alberta, which it owns with Suncor (NYSE:SU) and Total (NYSE:TOT), is progressing according to plan and expects first oil as early as Q4 2017; TCK expects its share of Fort Hills' costs this year to total ~C$800M.
Oct. 1, 2014, 2:39 PM
- Suncor Energy (SU +0.1%) is upgraded to Buy from Neutral at Citi, which sees 7%/year production growth during 2015-20 generating an average free cash flow yield of ~8% vs. a yield forecast of ~5.6% for global oil majors.
- The firm notes that SU has enhanced returns on its existing $25B of capital-in-place oil sands assets over the past 18-24 months, and is streamlining its operations to lower sustaining capital spending and operating expenses while producing more from its existing project.
- SU has cut 2014 capex by ~$1B, but the firm estimates further cuts to annual spending of $500M-$1B through 2020 which should generate another 20%-25% in free cash flow, allowing the company to achieve its return on capital employed goal of 15%.
- Citi now has Buy ratings on all four major integrated oil producers in Canada, which also includes Cenovus Energy (NYSE:CVE), Husky Energy (OTCQB:HUSKF) and Imperial Oil (NYSEMKT:IMO).
Sep. 23, 2014, 6:24 PM
- Fluor (NYSE:FLR) is awarded a $1.3B contract for engineering, procurement, fabrication and construction of the Fort Hills oil sands mining project in northern Canada.
- The project will be developed as an open-pit truck and shovel mine, and is planned to yield 180K bbl/day of bitumen at full production; first oil is expected as early as Q4 2017.
- Fort Hills is owned by a partnership between Suncor Energy (NYSE:SU), Total (NYSE:TOT) and Teck Resources (NYSE:TCK).
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.
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