Suncor Energy Inc (SU.TO)

Very cheaply valued at only about 5X cash flow. This is an integrated player. There are a lot of things they are doing that could improve their costs as well as wrapping up production. Yield of 2.61%.

To get US investors to come back to the stock en masse, the Keystone project is very important, despite the positive impact that rail has had. As a company that is devoting more capital to more projects, he feels investors are really leery of this. They prefer to look at it is a free cash flow machine.

He is watching it closely. A lot of the oil sands stocks are showing signs of bottoming and this is one of them. It is finally forming a nice little base. Strength is July to Oct. We are getting close to this time. Oil stocks have not responded to the breakout in oil price today. He is looking for $112/barrel for West Texas oil by end of September.

(Market Call Minute.) May be a buy when the US guys get more interested.

Excellent quality. Integrated including gas stations. Margins have improved. Had sold his holdings but is now looking at this again. This is a good, long-term hold. Not a big yield.

A great proxy on the unfolding Canadian oil/gas situation, where prices are going to be robust. Probably a pretty good bet.

(A Top Pick May 17/12. Up 19.07%.) Prospects continue to be excellent. Produce 550,000 barrels per day. Integrated so they capture the best pricing for their oil. Generating free cash flow. Increased their dividend 50% to of about a 2.5% yield.

Tremendously long lifed. Going out 3 years you could own this stock if you don’t worry month to month. Returns a lot of cash to shareholders. Ultimately he thinks Keystone will get approved but it will take longer than people think. 2.4% yield. Should increase dividend every year and maybe throw in a big buyback. If oil goes up you get good leverage to that.

Depends on the price of oil, and the differential between what they are producing in the oil sands and what West Texas Intermediary does. Likes Suncor thinks it's very cheap here.

Has been a big disappointment in terms of it's production growth. A recently cancelled voyager upgrade project wasn't really a surprise. Not the company it was 3 or 4 years ago.

Valuation is attractive, which is why they continue to hold it. New CEO is expected to increase the dividend. Recently positive on Suncor.

It is just not that cheap (on operating costs). He owns CVE-T.

Integrateds are moving to a model that looks more like an income trust. They are going to focus on returning cash to shareholders. He thinks this is a good thing.

They just raised the dividend recently. Horizontal drilling technology is as important to energy as the micro chip was to electronics. SU will be in a trading range for some time. With a 4% yield you can sit and wait.

Had a joint venture with Total (TOT-N) and both companies decided that the new upgrader was not going to go ahead and it looks like that was the right decision. Recently restated good oil sands production growth of over 4%. Also, just announced an increase in their quarterly dividend. Yield of 2.58%. Sees it at over $40 in 12 months.

Great reserve life. Huge oil sands assets. If you are a long-term investor, this is certainly one of the highest quality franchises to play the Canadian energy patch with. They had an asset sale recently which created some chatter that could result in a dividend increase.