| Suncor Poised to Grow on its Abundant Oil Sands Resources - Analyst Blog | |
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We issued an updated research report on Suncor Energy Inc. SU − Canada’s largest energy firm − on Apr 15, 2015. Suncor is one of the best positioned companies in the energy space given its access to abundant resources, its rich operating experience and technical know-how.
This is reflected in the company’s current Zacks Rank #2 (Buy), implying that the stock will outperform the broader U.S. equity market over the next one to three months.
Suncor has significant oil sands and conventional production platform, huge long-lived oil-sands reserves and an impressive downstream portfolio. The company’s asset base includes substantial conventional reserves and production offshore Eastern Canada and in the North Sea. These generate strong margins and should provide free cash flow to fund future oil sands expansion.
Investors should note that the Golden Eagle development in the U.K. North Sea, one of the growth projects of Suncor, produced its first oil in early 2015. Moreover, the Hebron development on the East Coast of Canada is expected to start operation by 2017. With the contribution from these developments, Suncor’s total output is anticipated to increase significantly and is reflected in higher shareholders’ cash flows.
Moreover, management has not been shy of divesting assets, particularly those that do not fit into the company’s long-term growth plan. This frees up capital that can be spent on Suncor's longer-term high-grade prospects.
Suncor plans to release its first-quarter 2015 results on Apr 29. The Zacks Consensus Estimate for the company’s first quarter now stands at a loss of 2 cents per share.
Other Stocks to Consider
Other players worth considering in the energy sector include Marathon Petroleum Corporation MPC, Western Gas Equity Partners LP WGP and Valero Energy Partners LP VLP. All these stocks sport a Zacks Rank #1 (Strong Buy). Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SUNCOR ENERGY (SU): Free Stock Analysis Report WESTERN GAS EP (WGP): Free Stock Analysis Report MARATHON PETROL (MPC): Free Stock Analysis Report VALERO EGY PTNR (VLP): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
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Suncor Energy est une société de production minière et de pétrole basée au Canada. Suncor Energy détient divers projets d'exploration au Canada. Son principal projet en exploration est SUNCOR OPERATIONS & BASE MINE au Canada. |