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).
Sep. 23, 2014, 5:14 PM
- Suncor Energy (NYSE:SU) says it is shipping its first-ever tanker of western Canadian heavy crude from Canada's east coast to Europe.
- SU confirms Reuters shipping data that shows the aframax tanker Minerva Gloria was set to pick up a cargo of crude oil from the port of Sorel-Tracy on the St. Lawrence River in Quebec, but the company does not say where in Europe the crude cargo is going.
- The shipment shows how Canada's heavy crude could begin to compete with crude from producers such as Russia and Saudi Arabia for customers in Europe; Enbridge (NYSE:ENB) shipped a first cargo of re-exported Canadian crude from the U.S. Gulf coast to Europe earlier this year.
Sep. 18, 2014, 7:54 AM
- Suncor Energy (NYSE:SU) agrees to sell the assets of Pioneer Energy to Parkland Fuel (OTCPK:PKIUF) for C$378M; Suncor, as one of the current joint owners of Pioneer Energy, will receive C$182.5M in cash for its share.
- Pioneer's holdings include a network of 393 gas stations throughout Ontario and Manitoba, and it distributes ~5% of total retail fuel volumes across Canada.
Aug. 15, 2014, 3:38 AM
- Berkshire Hathaway (BRK.B), (BRK.A) disclosed a $366M stake in cable TV operator Charter Communications (NASDAQ:CHTR) in the second quarter, according to a new regulatory filing. Shares of Charter have now rose more +2% in after-hours trading.
- The filing also detailed other new investments including a 1.3% raised stake in Wal-Mart (NYSE:WMT), and other increased holdings including IBM (NYSE:IBM) and Suncor Energy (NYSE:SU).
- However, Berkshire Hathaway reduced its stake in several companies, among them DirecTV (NASDAQ:DTV).
Jul. 31, 2014, 11:21 AM
- Suncor Energy (SU -2.3%) is sharply lower despite reporting Q2 earnings that rose 18% Y/Y but failed to meet analyst expectations.
- SU took a $718M writeoff to account for its share in the Joslyn oil sands project, which was mothballed by partner Total earlier this year, wrote down the value of its Libyan assets by $297M, and booked a $223M charge for oil sands assets that no longer fit into its future plans.
- SU cut its FY 2014 capital spending plan to C$6.8B from a previous target of C$7.8B in a bid to further reduce costs.
- Q2 production totaled 518.4K boe/day, up 3.6% Y/Y; output from Alberta operations rose 37% to 378.8K boe/day due to less maintenance in the quarter and increasing production from its Firebag thermal oil sands operations.
- Cash flow rose to $2.41B ($1.64/share) from $2.25B ($1.49/share).
Jul. 31, 2014, 12:31 AM| 1 Comment
Jul. 31, 2014, 12:21 AM
Jul. 25, 2014, 3:42 PM
- Exxon Mobil (XOM -1.2%) is downgraded to Underweight from Equal Weight at Barclays, primarily due to its relative valuation in the belief that potential upside is limited compared to peers.
- XOM will continue to face relative headwinds concerning the lack of meaningful near-term production growth and the likelihood of a relatively steady high oil price environment, Barclays believes.
- The firm recommends switching out of XOM to ConocoPhillips (COP -0.3%), Imperial Oil (IMO -1.3%) or Suncor (SU -0.3%).
- Barclays also cuts Cenovus Energy (CVE -1.7%) to Equal Weight from Overweight, seeing operating issues at Foster Creek and Pelican Lake remaining a drag on shares over the next several quarters (Briefing.com).
Jul. 23, 2014, 12:47 PM
- TransCanada (TRP +0.4%) says Alberta's energy regulator has approved its application to build and operate the C$800M Northern Courier pipeline project.
- TRP says the 56-mile pipeline will carry bitumen and diluent products between the Fort Hills oil sands mine and Suncor's (NYSE:SU) East Tank Farm north of Fort McMurray, Alberta; it is expected to be in service by 2017.
- TRP says Northern Courier is an important part of its capital growth plan, which includes C$38B of commercially secured projects expected to be completed by the end of the decade.
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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