Topic: How To Invest

The Successful Investor Hotline – Friday, November 27, 2020

Article Excerpt

SUNCOR ENERGY INC., $22.41, Toronto symbol SU, is still 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 58.74% of the Syncrude project near Fort MacMurray, Alberta. That facility takes bitumen from oil sands properties and partially upgrades it to synthetic crude. Under a new deal with Syncrude’s other partners—Imperial Oil (25.0%), Sinopec Oil Sands Partnership (9.03%) and CNOOC Oil Sands Canada (7.23%)—Suncor will replace Imperial Oil as the project’s operator in late 2021. Right now, Suncor and Syncrude compete for labour and materials, so this move should let Suncor cut $300 million from its annual expenses. To put that target in context, Sucncor lost $302 million, or $0.20 a share, in the third quarter of 2020. The company also aims to improve Syncrude’s average utilization rates to…

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