
TSE:SU
This summary was created by AI, based on 16 opinions in the last 12 months.
Suncor Energy Inc. (SU) is widely regarded as a strong player in the Canadian energy sector, particularly in oil sands. Many experts praise its impressive turnaround under new management, which has resulted in significant earnings growth and an efficient operational structure. Despite recent challenges due to fluctuating oil prices and broader geopolitical issues, Suncor is said to maintain a robust outlook with long-term potential for free cash flow generation, especially as investments in infrastructure continue. The company is viewed favorably for its ability to return capital to shareholders through dividends and buybacks, as well as its long reserve life that offers stability in the energy market. A few experts express caution regarding current valuation levels and suggest watching market dynamics before making significant moves, yet the overall sentiment leans towards optimism with potential upside depending on future oil price movements.
Suncor vs. Pembina Investor sentiment for oil is very weak, but Suncor is among the better performers in the last decade because their Oil Sands assets have such a long life that they don't have to keep investing money each year to maintain that production. Ultimately, Canada needs to see takeaway capacity to improve. He owns Pembina which is not as directly effected by the oil price. Suncor is an oil play; Pembina is an income play. Either one is fine.
Issue for the oil industry is that they have to continue to explore, pay their large dividends, and decarbonize themselves. Great company. Bigger issue is how they become less carbon intensive. If they don't, they'll be starved for capital. Suncor's making an effort in these areas. You can hold it for the dividend. He owns CNQ instead.
oil Oil is tricky. It's a broken market that may or may not be coming back. Some have returned to gold too early. Over the decades, oil has risen and fallen largely due to spin (i.e. Peak Oil). He picks up a little oil when the stocks get cheap. Oil is a messy space. Of the juniors, WCP is his favourite. SU-T is the senior one he likes. But he really likes Advantage (but they deal in natural gas, not oil).
He owns CNQ that and SU are the top two large energy companies. SU continues to buyback shares and raise their dividend. They've made astute acquisitions. SU is also increasing cash flow. But they're under pressure from climate change. SU will continue to cut costs, increase cash flow and raise their dividend. A great company and well-run.
Suncor will be a survivor of this energy down turn, but only wants to own one oil sands producer. He prefers CNQ. Suncor has benefited from their refinery assets, but that value uplift is pretty much played out.