Suncor Energy (NYSE: SU) reviewed 10-22-2020
Market Cap: $18.12 Billion (USD) Share Price: $11.88 (USD)
Shares outstanding: 1,525,151,000
Cash & cash equivalents: $1.846 Billion (USD) at 30 Jun 2020
Credit facility: $6.8 Billion
Debt: $21.88 Billion (USD) at 30 Jun 2020
Insiders: Low Institutional: 876 hold approx. 72% of the float
Website: suncor.com
CEO: Mark Little HQs: Calgary, Alberta, Canada
Suncor Energy extracts synthetic crude oil from bitumen thru a process of in situ bitumen recovery and surface mining & processing. Suncor also operates four oil refineries
The company reported a loss of $614 Million (USD) or ($0.40) cents per share in Q2 2020. Earnings for the prior quarter in 2019 were $2.92 Billion (USD) or $1.92 per share
Cash from operations came in at $488 Million (USD), compared to $3.0 Billion in Q2 of 2019
The company’s net debt position increased by $2.634 Billion in Q2 2020, via the issuance of 3-, 5-, and 10-year unsecured notes
Suncor’s management has responded to the difficult operating environment for energy by decreasing capital spending by 33%, or $1.9 Billion, reducing operating costs by 10%, or $1.0 Billion, and by cutting the dividend by 55%
The CEO announced a layoff of 10-15% of their employees on Oct. 7, 2020
Suncor currently pays a $0.63 cent dividend with a yield of approximately 5%
The company’s revised guidance is towards total 2020 production of 680,000-710,000 barrels oil equivalent per day
Bottom Line:
- Bloomberg reported that the company may sell their North Sea Oil & Gas fields
- Suncor is an outstanding company but I hold no stock position. However, the current share price represents good value to long-term oriented investors and in the next three months I am contemplating a position for the Natural Resources portfolio
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