Suncor Energy Inc (SU.TO)

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.

Has this as an “outperform” with a $43 target on it. Probably a good entry point at this time. 1.8% dividend yield.

He sold it when they acquired Petro Canada. They sold off an asset just recently and people knocked the stock down because of that. He thinks, though, that they are doing a good job of capital discipline. They have probably rationalized a lot of the Petro Can assets. At these levels it is worth buying here.

This needs the energy sector to come back in favour a bit. The catalyst for this could be the resolution of some of their transportation difficulties. Has good growth prospects, zeroing in on profitable growth as opposed to production growth. If you can be patient, you can make a lot of money if you hold it over the next 3 years.

Spread differential has narrowed from $25 down to $12-$13. Unfortunately, at the same time, WTI has gone down. The lower Cdn$ has also helped. He is more positive on the Alberta oil situation than he was a few months ago. He has virtually eliminated all of his integrateds.