Topic: How To Invest

The Successful Investor Hotline – Friday, January 8, 2021

Article Excerpt

SUNCOR ENERGY INC., $23.49, Toronto symbol SU, remains a buy for long-term gains. The company is Canada’s largest integrated oil firm, with major projects in the Alberta oil sands. Investors also gain exposure to its four refineries (three in Canada and one in Colorado), along with 1,500 Petro-Canada gas stations. In addition, Suncor owns 27.5% of the White Rose offshore drilling project near Newfoundland and 26.0% of the West White Rose project; it’s scheduled to begin operating in 2022. Recently, CENOVUS ENERGY INC., $8.35, Toronto symbol CVE, acquired control of the White Rose projects through its acquisition of rival oil producer Husky Energy Inc. (Toronto symbol HSE) for $3.8 billion in stock. Husky suspended work on West White Rose in April 2020 due to the COVID-19 pandemic and the sharp drop in crude oil prices. However, it’s possible that Cenovus will abandon the project altogether. As a result, Suncor is writing down its investment in both White Rose projects by a total of $425 million…

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