Suncor Energy Inc (SU.TO)

Moved into this out of Petro Canada. New CEO has had a bigger focus on returning cash to shareholders. It can’t return to previous multiples. Integrated producer so they can refine what they produce. He worries about lower oil prices across the board.

(Market Call Minute) It is undervalued and has huge cash flow that will allow repurchase of shares and an increase in dividend.

Just put themselves in a position here they have very good cash flow. Only Canadian one that will spin off cash while increasing production and while oil is falling. Valuation is compelling.

Had problems in refining and marketing in the quarter like everyone else but the oil sands side did $950 million in net earnings versus $537 million. Production volumes have gone up. BV is around $27.55. He feels a low $30 downside potentially if there is a drop in oil prices.

There are decent gains from here but has had a really good performance over the last 12 months. Very well run. Showing a lot of capital discipline. Great long-term growth prospects. Just sanctioned the Fort Hills project. This won’t be coming until late 2017 but there is lots of growth ahead of it and still reasonably priced. His target is $42 in the next 12 months.

Has restructured because of their Petro Canada deal going through. Put the company together well. Management is really thinking about Return on Invested Capital and sold off assets that they don’t need. Also, have refining, which really helps them in this part of the cycle.

Has owned this for the 1^st time in 2013 since 2008 when he got stopped out. This had needed an external jolt which came from Warren Buffett in the summer. Pretty fairly valued and there are cheaper names out there. 2.2% dividend.

(Market Call Minute.) He is supportive of the oil sands industry and this company in particular.

Was too cheap for quite a while and then had the move up. It depends on the oil price. It is fully price at $90 and cheap at $100. The headwinds out of the oil commodity for next winter are not good.

Don’t read anything into Warren Buffet investing in it. It has been going up because the company has been doing better operationally. Good cash flow and dividend increases expected. Thinks the breakout is the real deal.

2.2% dividend. $64.76, 75% upside. From a value perspective you can’t beat it.

This one is the flavour of the day. Great balance sheet. If and when the Americans come back to play in the Canadian energy patch, this will be one of the big “go to” names.

Spreads in oil prices are pretty close to the widest we have seen. This stock has a Warren Buffet premium in it. Thinks it will correct and you should trim your position and then buy back 10-15% lower next year.

(A Top Pick Nov 22/12. Up 12.16%.) Top quality company. A “go to” name if you want energy and oil sands exposure.

Trading at a very cheap multiple of about 5.4X enterprise Value. Integrated model so it is relatively safe. Trading cheaper than NAV.