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Barron’s profiles the oilsands players:
#msg-59578616
#msg-59578649
Oil Prices going straight up. Go SU
http://canadapetro.com
Suncor Energy Inc. (SU)
42.15 ? 0.16 (0.38%)
Volume: 9,717,621 @ 6:32:50 PM ET
Bid Ask Day's Range
42.3 42.58 41.96 - 43.39
SU Detailed Quote
Turnkey, whats your current thought on NTRO compared to this play?
Seems to be a trend lately :(
Seems to be a trend lately :(
A Big Disgrace for Canada & US Oilsands -
Oilsands Quest Announces Executive Appointment and Participation in Saskatchewan Trade Mission to China
Oilsands Quest (AMEX:BQI)
Historical Stock Chart
January 2011
Oilsands Quest Inc. (NYSE Amex: BQI) ("Oilsands Quest" or "the Company") has appointed Simon Raven to the position of Vice President, Exploration and Development.
Simon Raven has served as Chief Geologist at Oilsands Quest Inc. since August 2006 and has been an integral part of the team that delineated the Company's discoveries at Axe Lake, Raven Ridge and Wallace Creek. In his new role, Mr. Raven will be responsible for the exploration and development of the Company's assets.
Mr. Raven started his career at Synenco, where he worked on the Northern Lights oil sands project as a member of the team that drilled over 500 exploration holes and delineated over two billion barrels of bitumen.
Mr. Raven then spent five years with Norwest Corporation working as a project geologist and project manager. During his time with Norwest, he managed coal bed methane and oil sands exploration projects throughout Western Canada and in Western China.
Mr. Raven is a member of the Canadian Society of Petroleum Geologists (CSPG), American Association of Petroleum Geologists (AAPG) and the Canadian Institute of Mining and Metallurgy (CIM), a professional geologist (P.geol) and an active member of the Association of Professional Engineers, Geologist and Geophysicists of Alberta (APEGGA).
Oilsands Quest to Accompany Saskatchewan Energy Minister to China
Oilsands Quest will be part of a trade delegation to China led by Saskatchewan Minister of Energy and Resources, Bill Boyd, from January 17th to 21st, 2011. The Company, together with three representatives of the Minister's office, will meet with Asian companies that have investments in the province to promote Saskatchewan resources, including oilsands, to potential investors.
"We are very pleased to be a part of Minister Boyd's delegation," said Paul Ching, a Director of the Company who will be a member of the delegation. "We are excited to be developing Saskatchewan's first oil sands project, and we look forward to presenting this opportunity to potential investors."
About Oilsands Quest
Oilsands Quest Inc. (www.oilsandsquest.com) is exploring and developing oil sands permits and licences, located in Saskatchewan and Alberta, and developing Saskatchewan's first commercial oil sands discovery. It is leading the establishment of the province of Saskatchewan's emerging oil sands industry.
SOURCE Oilsands Quest Inc.
http://ih.advfn.com/p.php?pid=nmona&article=46062326
China for economic revival -
e.g.,
Suncor News Releases
Petro-Canada News Archive
http://www.suncor.com/en/newsroom/404.aspx
Suncor Energy reports oil sands production numbers for December 2010
CALGARY, ALBERTA--(Marketwire - Jan. 7, 2011) - Suncor Energy Inc. reported today that the company's oil sands production during December averaged approximately 323,000 barrels per day (bpd). The company achieved its oil sands production target for 2010 with annual production averaging approximately 283,000 bpd.
[read release]
Suncor Energy unveils ten-year growth strategy
CALGARY, ALBERTA--(Marketwire - Dec. 17, 2010) - Suncor Energy Inc. announced today its plans to increase production to more than one million barrels of oil equivalent per day by 2020, beginning with the company's 2011 capital spending plans. Over the next ten years, Suncor is targeting oil sands production growth of approximately 10% per year and company-wide production growth of approximately 8% per year.
[read release]
Suncor Energy to release 2011 guidance and strategic growth update
CALGARY, ALBERTA--(Marketwire - Dec. 16, 2010) - Suncor Energy Inc. will release its 2011 guidance and strategic growth update on Friday, December 17, 2010 at 12:30 a.m. MST (2:30 a.m. EST).
[read release]
Suncor Energy reports oil sands production numbers for November 2010
CALGARY, ALBERTA--(Marketwire - Dec. 2, 2010) - Suncor Energy Inc. reported today that the company's oil sands production during November averaged approximately 325,000 barrels per day (bpd). Year-to-date oil sands production at the end of November averaged approximately 279,000 bpd. Suncor is targeting average oil sands production of 280,000 bpd (+/- 5%) in 2010.
[read release]
Janice Odegaard appointed Suncor Energy senior vice president and general counsel
CALGARY, ALBERTA--(Marketwire - Dec. 1, 2010) - Suncor Energy today announced the appointment of Janice Odegaard to the position of senior vice president and general counsel. In this role, Odegaard will be responsible for all legal and regulatory matters across the company and will work closely with Suncor's Board of Directors on matters of corporate governance.
[read release]
Suncor Energy reports oil sands production numbers for December 2010
CALGARY, ALBERTA--(Marketwire - Jan. 7, 2011) - Suncor Energy Inc. reported today that the company's oil sands production during December averaged approximately 323,000 barrels per day (bpd). The company achieved its oil sands production target for 2010 with annual production averaging approximately 283,000 bpd.
Production numbers include upgraded sweet and sour synthetic crude oil and diesel, as well as non-upgraded bitumen sold directly to the market, from all Suncor-operated facilities. Reported volumes do not include Suncor's proportionate production share from the Syncrude joint venture.
These numbers are preliminary and subject to adjustment. Monthly totals may differ from the year-to-date total due to rounding, the impact of sales and changes in inventory. Production volumes will be confirmed when Suncor's fourth quarter results are released
As of January 2011, Suncor will no longer press release monthly production reports from its oil sands operation. These numbers will instead be posted and generally available on the company's website at www.suncor.com/production
This news release contains forward-looking statements, which are based on Suncor's current expectations, estimates, projections and assumptions. Uncertainties in the estimate process and impact of future events may cause actual results to differ, in some cases materially, from our estimates. Readers are cautioned that actual results could differ materially from those expressed or implied by these forward-looking statements as a result of changes to Suncor's plans and the impact of events, risks and uncertainties discussed in Suncor's third quarter earnings release, current annual information form/form 40-F, current annual report to shareholders and other documents filed with Canadian securities commissions at www.sedar.com and the United States Securities and Exchange Commission (SEC) at www.sec.gov. Readers are cautioned not to place undue reliance on such forward-looking statements.
Suncor Energy Inc. is Canada's premier integrated energy company. Suncor's operations include oil sands development and upgrading, conventional and offshore oil and gas production, petroleum refining, and product marketing under the Petro-Canada brand. While working to responsibly develop petroleum resources, Suncor is also developing a growing renewable energy portfolio. Suncor's common shares (symbol: SU) are listed on the Toronto and New York stock exchanges.
-30-
For more information please contact:
Investor inquiries
Helen Kelly
403-296-6557
or
Media inquiries
403-920-8332
www.suncor.com
Suncor Energy Inc. (SU)
37.04 ? -0.26 (-0.70%)
Volume: 4,501,517 @ 5:40:51 PM ET
Bid Ask Day's Range
34.0 37.54 36.54 - 37.33
CALGARY, ALBERTA--(Marketwire - 12/02/10) - Suncor Energy Inc. reported today that the company's oil sands production during November averaged approximately 325,000 barrels per day (bpd). Year-to-date oil sands production at the end of November averaged approximately 279,000 bpd. Suncor is targeting average oil sands production of 280,000 bpd (+/- 5%) in 2010.
Production numbers include upgraded sweet and sour synthetic crude oil and diesel, as well as non-upgraded bitumen sold directly to the market, from all Suncor-operated facilities. Reported volumes do not include Suncor's proportionate production share from the Syncrude joint venture.
On a monthly basis, Suncor reports production numbers from its oil sands operation in order to provide stakeholders with a more timely review of operational performance. These numbers are preliminary and subject to adjustment. Monthly totals may differ from the year-to-date total due to rounding, the impact of sales and changes in inventory. Production volumes will be confirmed when Suncor's fourth quarter results are released.
Great news last couple days. Hope some of you guys loaded in the low $30's.
That could very well be, over the next few weeks. I'll be reading up.
Thanks
It moves in concert with NG or so it is supposed to. Could be a good trade if you are tracking NG closely.
Not as of today. But, I have looked at that particular symbol in the past.
Very good points, I agree it could make for a very lucrative next 90 days.
Are you playing any ETF's such as UNG for natural gas?
Well if the winter predictions are 1/2 of what is expected, things are going to get Jiggy. I've been studying forecasts and watching wildlife around my area and it's definitely different than from previous years (I have mountains and crown land for a back yard). All this spells an increase in usage, reduced stock piles and the inevitable price increase follow.
Once that supply tightens it will move the NG up. Should have a nice rally this winter but not likely enough to get excited about.
I see that changing next winter possibly but still waiting to see more data.
Suffice to say almost 9% today alone makes me a very happy camper as we loaded into this one.
Nice little article. Come on winter!
Though supply still exceeded demand during the Thursday-to-Wednesday report week (October 28-Nov 3) as reported by BENTEK, the supply/demand balance continued to tighten as demand rose while supply stayed flat. Total supply rose less than one half of one percent during the report week, as production and liquefied natural gas (LNG) sendout rose slightly. Overall, Canadian pipeline imports fell by an estimated 2 percent, but declines in imports to the West and Midwest were partially offset by a 17-percent increase in imports to the Northeast. Total consumption rose 7 percent, bolstered by a 30-percent increase in residential and commercial consumption, and partially offset by a 9-percent decline in consumption of natural gas for electric power generation. Compared to last year, total consumption is 2 percent higher and total supply is 6 percent higher.
That is funny! I heard a similar saying but that one is better.
I agree with your points regarding Suncor there is upside but limited to NG price drivers. Its hard to see NG prices do much though over the next year there is so much over saturation of it in the market I don't see demand rising less some special circumstances as you pointed out.
For now I believe the smart money and my money (not always so smart) is in private oil production and public companies that are doing the same for the foreseeable future. Commodities are the next big bull market IMHO.
Yup, I keep a good position in this sector. Suncor at this point is a steal and will continue to be a buy right up to about $35.00/sh. I have my doubts it will achieve $40.00 any time soon, unless we get a real cold snap then it could.
Natural gas has a lot more room too move. Natural gas @ $3.25- $4.00 is a break even point for most. Bad weather and high usage to deplete reserves and locked in contract amounts, would see much higher prices. $6.00 -$8.00 would be a gift. The old saying in the Alberta Oil patch was "Please god let there be another boom and I promise not to piss it away again"
I am actively watching oil sands / natural gas plays. Should prove to be undervalued here.
Been a long time on this board with no posts, anyone out there? Edmonton’s refinery back on line as well as the hydrogen upgrade at the plant. The vote last night should spark republican confidence for the tar sands projects over all. I hope as the republicans are somewhat friendlier towards these projects. Not that I think the US has/should have much influence on my side of the boarder but any positive sediment can't hurt, no matter what side of the boarder. There I said it, if that doesn’t spark some posting nothing well.
Cheers!
Suncor Energy Inc. (NYSE:SU)
Last Price (USD) $33.00
Change ? -0.26 (-0.78%)
Bid 32.84
Ask 33.00
Volume 3,619,449
Days Range 32.89 - 33.44
Last Trade 9/14/2010 4:42:12 PM
Click for detailed quote page
Suncor Energy Inc. (NYSE:SU)
Last Price (USD) $32.11
Change ? 0.02 (0.06%)
Bid 32.10
Ask 32.11
Volume 4,234,867
Days Range 31.67 - 32.23
Last Trade 7/23/2010 3:42:20 PM
Suncor Energy Inc. (NYSE:SU)
Last Price (USD) $31.84
Change ? 1.26 (4.12%)
Bid 31.60
Ask 32.38
Volume 12,011,941
Days Range 31.48 - 32.88
Last Trade 5/10/2010 4:42:09 PM
Suncor Energy Inc. (NYSE:SU)
Last Price (USD) $34.03
Change ? -0.281 (-0.82%)
Bid 34.02
Ask 34.03
Volume 11,540,545
Days Range 33.64 - 34.90
Last Trade 5/4/2010 2:30:08 PM
Click for detailed quote page
Suncor Energy Inc. (NYSE:SU)
Last Price (USD) $30.66
Change ? 0.06 (0.20%)
Bid 30.08
Ask 31.24
Volume 7,788,806
Days Range 30.19 - 30.93
Last Trade 3/4/2010 5:26:14 PM
Click for detailed quote page
Suncor Energy Inc. (NYSE:SU)
Last Price (USD)
$ 30.31
Change
? -0.38 (-1.24%)
Bid 30.31
Ask 30.43
Volume 8,803,671
Day's Range 30.19 - 31.18
Last Trade 5:17:31 PM EST
Click for Detailed Quote Page
I used to work in the oil sands. Spend 3 years up in fort mcmurray and worked for about a year at the Suncor site as a contractor.
Take a look at Oilsands Quest. It owns a ton of land and is what Suncor was 20 years ago.
Suncor Energy Inc. (NYSE:SU)
Last Price (USD)
$ 36.69
Change
? 0.20 (0.55%)
Bid 31.19
Ask 40.05
Volume 3,462,540
Day's Range 36.38 - 36.93
Last Trade 5:47:47 PM EST
Click for Detailed Quote Page
I knew it - that beach is yours !!! Enjoy it
goforthebet great, nice to see you here
you are very welcome -
its good to do research and
that's what keeps me here -
to compare and see if its anything better
around etc.
have a nice weekend
I will walk the beach barefoot -
like my bigfoots
to make sure to be down -
down to earth person
God Bless
I am only following some stocks you are in.. no shareholder myself here.. wish you good luck bob, and a great weekend :)
Suncor Energy Inc. (NYSE:SU)
Last Price (USD)
$ 32.9
Change
▼ -0.24 (-0.72%)
Bid 32.89
Ask 32.90
Volume 7,402,567
Day's Range 32.54 - 34.06
Last Trade 1:46:35 PM EST
Click for Detailed Quote Page
goforthebet' welcome on 'Suncor Energy Inc.' -
I have been in a long time -
but its not so much excitments -
as in a smaller venture -
and do like venture players -
BQI who is a much smaller company with
larger crude sand land properties
dd....
http://investorshub.advfn.com/boards/board.aspx?board_id=6668
Suncor Third-Quarter Net Rises Amid Petro-Canada Deal
By Sonja Franklin
Nov. 6 (Bloomberg) -- Suncor Energy Inc., Canada’s largest oil company, said third-quarter profit rose 14 percent, even after crude prices tumbled, reflecting its acquisition of Calgary-based rival Petro-Canada.
Net income increased to C$929 million ($873 million) from C$815 million a year earlier, the Calgary-based company said today in a Market Wire statement. Operating earnings fell 64 percent to C$288 million while cash flow from operations dropped 50 percent to C$574 million.
Suncor in August completed its C$19.2 billion purchase of Petro-Canada, the biggest Canadian energy takeover ever. The transaction is expected to save more than C$1 billion in capital costs and C$300 million in operational expenditures a year, Suncor said.
“This was a milestone quarter in Suncor’s history and a very productive one,” Chief Executive Officer Rick George said in the statement. “The integration work we’ve completed in just a little over three months is already yielding some significant efficiencies.”
George plans to sell some natural-gas assets by the end of next year to focus on crude projects including Alberta’s oil sands. Planned disposals are scheduled for Western Canada, the U.S. Rockies, Trinidad and Tobago and the North Sea.
In today’s results, the first quarterly earnings that include Petro-Canada, Suncor’s profit climbed even after New York oil prices averaged 42 percent lower in the quarter and gas slipped 62 percent.
Stock Gain
The company said the decline in operating earnings and cash flow from operations reflected lower price realizations and higher oil-sands operating expenses. These were partially offset by increased upstream production following the Petro-Canada deal, and improved operational performance of oil-sands assets.
The statement was issued before the opening of regular trading on North American markets. Suncor rose 0.7 percent to C$35.37 yesterday on the Toronto Stock Exchange.
The stock has jumped 49 percent this year. That’s more than the 29 percent gain in the 51-member S&P/TSX Energy Index, though less than the 80 percent increase in New York oil prices since the start of the year.
About 42 percent of Suncor’s output comes from the oil sands, the world’s biggest crude reserves after Saudi Arabia’s. The tar-like sands are located about 750 kilometers (466 miles) north of Calgary. Output from the oil sands may almost double to 2.2 million barrels a day by 2015, the Canadian Association of Petroleum Producers estimates.
Environmental Protests
Oil-sands producers have been facing increased protests from environmental activists over concerns of greenhouse-gas emissions. Greenpeace International activists in September entered Suncor’s main tar-sands mine to disrupt production of what they call “dirty” crude. Two weeks earlier, Greenpeace protesters temporarily blocked a similar site run by Royal Dutch Shell Plc.
Greenpeace alleges greenhouse-gas emissions from the oil sands may reach 140 million tons a year by 2020, exceeding the current levels of countries such as Ireland and Portugal. Shell says the oil sands produce just 5 percent to 15 percent more carbon dioxide than conventional wells.
To contact the reporter on this story: Sonja Franklin in Calgary at sfranklin6@bloomberg.net
Last Updated: November 6, 2009 05:15 EST
Suncor Energy Inc. (NYSE:SU)
Last Price (USD)
$ 37.9
Change
▼ -0.05 (-0.13%)
Bid 37.60
Ask 38.89
Volume 7,242,181
Day's Range 37.36 - 38.915
Last Trade 6:32:32 PM EDT
Click for Detailed Quote Page
Suncor Energy (NYSE:SU)
Last Price (USD)
$ 31.47
Change
▼ -0.21 (-0.66%)
Bid 31.40
Ask 31.83
Volume 4,537,626
Day's Range 31.35 - 32.35
Last Trade 4:14:44 PM EDT
Click for Detailed Quote Page
Solid Operations and Strong Liquidity Position Petro-Canada Well for Merger with Suncor
CALGARY, ALBERTA -- (Marketwire) -- 07/30/09 -- Highlights
- Production in line with guidance due to reliable upstream operations
- Maintained strong liquidity through a difficult business environment
- Obtained shareholder, court and Competition Bureau approval for merger with Suncor Energy Inc. (Suncor) to create Canada's premier energy company, effective August 1, 2009
Petro-Canada announced today second quarter operating earnings of $99 million ($0.20/share), down 91% from $1,151 million ($2.38/share) in the second quarter of 2008. Second quarter 2009 cash flow from operating activities before changes in non-cash working capital was $634 million ($1.31/share), down 68% from $1,979 million ($4.09/share) in the same quarter of last year.
Net earnings were $77 million ($0.16/share) in the second quarter of 2009, compared with $1,498 million ($3.10/share) in the same quarter of 2008.
"We continued to manage our business in a prudent manner during the second quarter, as the downturn persisted," said Ron Brenneman, president and chief executive officer. "Staying the course we charted for ourselves at the beginning of this year has us in a strong position heading into our merger with Suncor."
As a result of the merger between Petro-Canada and Suncor, Petro-Canada will not be declaring further dividends. Dividends will now be granted and paid by the new amalgamated Company, subject to the approval of its new Board of Directors.
Second Quarter Results ---------------------------------------------------------------------------- Three months ended Six months ended (millions of Canadian dollars, June 30, June 30, except per share and share amounts) 2009 2008 2009 2008 ---------------------------------------------------------------------------- Consolidated Results Operating earnings(1) $ 99 $ 1,151 $ 210 $ 2,097 - $/share 0.20 2.38 0.43 4.33 Net earnings 77 1,498 30 2,574 - $/share 0.16 3.10 0.06 5.32 Cash flow from operating activities before changes in non-cash working capital(2) 634 1,979 1,336 3,831 - $/share 1.31 4.09 2.76 7.92 Dividends - $/share 0.20 0.13 0.40 0.26 Capital expenditures $ 683 $ 2,141 $ 1,364 $ 3,157 Weighted-average common shares outstanding (millions of shares) 485.0 483.8 484.9 483.8 Total production net before royalties (thousands of barrels of oil equivalent/day - Mboe/d)(3) 374 414 392 421 Operating return on capital employed (%)(4) Upstream 18.3 35.1 Downstream 3.2 3.3 Total Company 11.3 20.6 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- (1) Operating earnings (which represent net earnings, excluding gains or losses on foreign currency translation of long-term debt and on sale of assets, including the Downstream estimated current cost of supply adjustment and excluding mark-to-market valuation of stock-based compensation, the Libya Exploration and Production Sharing Agreements (EPSAs) ratification adjustment, income tax adjustments, asset impairment charges, insurance proceeds and premium surcharges, and charges due to the deferral of the Fort Hills project - see page 2 NON-GAAP MEASURES) are used by the Company to evaluate operating performance.
(2) From operating activities before changes in non-cash working capital (see page 2 NON-GAAP MEASURES).
(3) Total production includes natural gas converted at six thousand cubic feet (Mcf) of natural gas for one barrel (bbl) of oil.
(4) Returns calculated on a 12-month rolling basis.
NON-GAAP MEASURES
Cash flow and cash flow from operating activities before changes in non-cash working capital are commonly used in the oil and gas industry and by Petro-Canada to assist management and investors in analyzing operating performance, leverage and liquidity. In addition, the Company's capital budget was prepared using anticipated cash flow from operating activities before changes in non-cash working capital, as the timing of collecting receivables or making payments is not considered relevant for capital budgeting purposes. Operating earnings represent net earnings, excluding gains or losses on foreign currency translation of long-term debt and on sale of assets, including the Downstream estimated current cost of supply adjustment and excluding mark-to-market valuation of stock-based compensation, the Libya EPSA ratification adjustment, income tax adjustments, asset impairment charges, insurance proceeds and premium surcharges, and charges due to the deferral of the Fort Hills project. Operating earnings are used by the Company to evaluate operating performance. Cash flow, cash flow from operating activities before changes in non-cash working capital and operating earnings do not have standardized meanings prescribed by Canadian generally accepted accounting principles (GAAP) and, therefore, may not be comparable with the calculations of similar measures for other companies. For a reconciliation of cash flow and cash flow from operating activities before changes in non-cash working capital to the associated GAAP measures, refer to the table on page 4. For a reconciliation of operating earnings to the associated GAAP measures, refer to the table below.
---------------------------------------------------------------------------- Three months ended June 30, (millions of Canadian dollars, except per share amounts) 2009 ($/share) 2008 ($/share) ---------------------------------------------------------------------------- Net earnings $ 77 $ 0.16 $ 1,498 $ 3.10 ---------------------------------------------------------------------------- Foreign currency translation gain (loss) on long-term debt(1) 273 (13) Loss on sale of assets(2) (5) (99) Downstream estimated current cost of supply adjustment 137 299 Mark-to-market valuation of stock-based compensation (87) (117) Libya EPSA ratification adjustment(3) - 47 Income tax adjustments(4) 2 230 Asset impairment charge(5) (158) - Insurance proceeds and premium surcharges 1 - Charges due to the deferral of the Fort Hills project(6) (185) - ---------------------------------------------------------------------------- Operating earnings $ 99 $ 0.20 $ 1,151 $ 2.38 ---------------------------------------------------------------------------- ----------------------------------------------------------------------------
---------------------------------------------------------------------------- Six months ended June 30, (millions of Canadian dollars, except per share amounts) 2009 ($/share) 2008 ($/share) ---------------------------------------------------------------------------- Net earnings $ 30 $ 0.06 $ 2,574 $ 5.32 ---------------------------------------------------------------------------- Foreign currency translation gain (loss) on long-term debt(1) 174 (61) Loss on sale of assets(2) (3) (96) Downstream estimated current cost of supply adjustment 152 422 Mark-to-market valuation of stock-based compensation (112) (49) Libya EPSA ratification adjustment(3) - - Income tax adjustments(4) 7 256 Asset impairment charge(5) (158) (24) Insurance proceeds and premium surcharges 1 29 Charges due to the deferral of the Fort Hills project(6) (241) - ---------------------------------------------------------------------------- Operating earnings $ 210 $ 0.43 $ 2,097 $ 4.33 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- (1) Foreign currency translation reflected gains or losses on United States (U.S.) dollar-denominated long-term debt not associated with the self- sustaining International business unit and the U.S. Rockies operations included in the North American Natural Gas business unit.
(2) In the second quarter of 2008, the North American Natural Gas business unit completed the sale of its Minehead assets in Western Canada, resulting in a loss on sale of $153 million before-tax ($112 million after-tax).
(3) In the second quarter of 2008, the Company signed six new EPSAs with the Libya National Oil Corporation (NOC) to replace existing concession agreements and one EPSA. The new EPSAs were ratified as of the signing, with an effective date of January 1, 2008. Net earnings for the three months ended June 30, 2008 included a $47 million after-tax adjustment to recognize incremental earnings on the new EPSAs relating to the period from January 1 to March 31, 2008, which could not be recognized until ratification on June 19, 2008.
(4) In the second quarter of 2008, the International business segment recorded a $230 million future income tax recovery due to the ratification of the Libya EPSAs.
(5) In the second quarter of 2009, the North American Natural Gas business unit recorded a charge of $244 million before-tax ($158 million after-tax) for impairments primarily related to the coal bed methane (CBM) assets in the U.S. Rockies due to production performance combined with lower prices. In the first quarter of 2008, the North American Natural Gas business unit recorded a depreciation, depletion and amortization (DD&A) charge of $35 million before-tax ($24 million after-tax) for accumulated project development costs relating to the proposed liquefied natural gas (LNG) re-gasification facility at Gros- Cacouna, Quebec, which has been postponed due to global LNG business conditions.
(6) In the second quarter of 2009, the Oil Sands business unit recorded expenses of $252 million before-tax ($185 million after-tax) primarily related to writedowns of property, plant and equipment due to the indefinite deferral of the upgrading portion of the Fort Hills project.
In the first quarter of 2009, the Oil Sands business unit recorded expenses of $80 million before-tax ($56 million after-tax) to reflect costs incurred terminating certain goods and services agreements and writedowns of certain property, plant and equipment due to the deferral of the Fort Hills final investment decision (FID).
Earnings Variances
Q2/09 VERSUS Q2/08 FACTOR ANALYSIS
Operating Earnings
(millions of Canadian dollars, after-tax)
To view a graph for the Operating Earnings please visit the following link: http://media3.marketwire.com/docs/730pcae1.jpg.
Operating earnings decreased 91% to $99 million ($0.20/share) in the second quarter of 2009, compared with $1,151 million ($2.38/share) in the second quarter of 2008. The decrease in second quarter operating earnings reflected lower realized upstream prices ($(768) million), decreased upstream volumes(1) ($(184) million), decreased Downstream margin and volumes(2) ($(10) million), and higher DD&A and exploration ($(47) million), operating, general and administrative (G&A) ($(28) million) and other(3) ($(15) million) expenses.
(1) Upstream volumes included the portion of DD&A expense associated with changes in upstream production levels.
(2) Downstream margin included the estimated current cost of supply adjustment.
(3) Other mainly included changes in the elimination of profits in the upstream business units for crude oil sales to Downstream, where the crude oil still resides in Downstream's inventories ($(56) million), decreased sulphur sales ($(28) million), foreign exchange ($(14) million) and upstream inventory movements ($77 million).
Operating Earnings by Segment
(millions of Canadian dollars, after-tax)
To view a graph for the Operating Earnings by Segment please visit the following link: http://media3.marketwire.com/docs/730pcae2.jpg.
The decrease in second quarter operating earnings on a segmented basis reflected lower operating earnings in East Coast Canada ($(248) million) and International ($(241) million), a decrease from operating earnings to an operating loss in North American Natural Gas ($(287) million, Oil Sands ($(181) million) and Downstream ($(18) million), and higher Shared Services and Eliminations costs ($(77) million).
Net earnings in the second quarter of 2009 were $77 million ($0.16/share), compared with $1,498 million ($3.10/share) during the same period in 2008. Net earnings in the second quarter of 2009 were lower than in the second quarter of 2008 due to significantly lower operating earnings, expenses from the deferral of the Fort Hills project, impairment charges in North American Natural Gas and a smaller current cost of supply adjustment in the Downstream. Net earnings for the second quarter of 2008 included a $230 million future income tax recovery on the ratification of the Libya EPSAs. These factors were partially offset by lower expenses from the mark-to-market valuation of stock-based compensation, smaller losses on the sale of assets and foreign currency translation gains on long-term debt during the second quarter of 2009, versus foreign currency translation losses in the same period of the prior year.
---------------------------------------------------------------------------- Three months ended Six months ended June 30, June 30, (millions of Canadian dollars) 2009 2008 2009 2008 ---------------------------------------------------------------------------- Cash flow from operating activities $ 465 $ 2,479 $ 937 $ 3,914 Increase (decrease) in non-cash working capital related to operating activities 169 (500) 399 (83) ---------------------------------------------------------------------------- Cash flow from operating activities before changes in non-cash working capital $ 634 $ 1,979 $ 1,336 $ 3,831 ---------------------------------------------------------------------------- ----------------------------------------------------------------------------
During the second quarter of 2009, cash flow from operating activities before changes in non-cash working capital was $634 million ($1.31/share), down significantly from $1,979 million ($4.09/share) in the same quarter of 2008. The decrease in cash flow from operating activities before changes in non-cash working capital reflected significantly lower net earnings.
2009 Consolidated Net Production and Capital Expenditure Outlooks
The Company updates its annual production and capital and exploration expenditure outlooks at mid-year. Full-year upstream production is expected to be in the 355,000 barrels of oil equivalent/day (boe/d) to 375,000 boe/d range in 2009, in line with the 345,000 boe/d to 385,000 boe/d production outlook previously provided. The 2009 capital and exploration expenditure program is expected to be $3.2 billion, down $200 million from the prior guidance of $3.4 billion announced on April 28, 2009.
Operating Highlights
Second quarter production in 2009 averaged 374,000 boe/d net to Petro-Canada, down from 414,000 boe/d net in the same quarter of 2008. Volumes reflected decreased North American Natural Gas, East Coast Canada and International production while Oil Sands production was relatively unchanged.
In the Downstream, earnings were negatively impacted by a weaker business environment in the second quarter of 2009.
---------------------------------------------------------------------------- Three months ended Six months ended June 30, June 30, 2009 2008 2009 2008 ---------------------------------------------------------------------------- Upstream - Consolidated Production before royalties Crude oil and natural gas liquids (NGL) production net (thousands of barrels/day - Mb/d) 267 296 281 303 Natural gas production net, excluding injectants (millions of cubic feet/day - MMcf/d) 645 705 670 709 Total production net (Mboe/d)(1) 374 414 392 421 Average realized prices Crude oil and NGL ($/barrel - $/bbl) 65.37 117.22 58.38 104.67 Natural gas ($/thousand cubic feet - $/Mcf) 3.44 9.55 4.56 8.56 ---------------------------------------------------------------------------- Downstream Petroleum product sales (thousands of cubic metres/day - m3/d) 50.0 51.8 50.5 52.0 Average refinery utilization (%) 85 96 87 99 Downstream operating earnings (loss) after-tax (cents/litre) (0.4) - 0.5 0.6 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- (1) Total production included natural gas converted at six Mcf of natural gas for one bbl of oil.
BUSINESS STRATEGY
Petro-Canada's strategy is to create shareholder value by delivering long-term, profitable growth and improving the profitability of the base business. On March 23, 2009, the Company announced plans to merge with Suncor to create the premier Canadian energy company.
The Company continues to advance the three major growth projects previously sanctioned by the Company: the extension of the White Rose field off the East Coast of Canada; the Syria Ebla gas project; and the developments associated with the new Libya EPSAs. The other three major growth projects, MacKay River expansion, Fort Hills mining project and the Montreal coker, are not sanctioned by the Company and are on hold until the merger with Suncor is completed. After the close of the merger all capital projects for the merged company will be reviewed in the context of capital investment being directed toward projects with the strongest near-term cash flow potential, highest anticipated return on capital and lowest risk.
Petro-Canada continually works to strengthen its base business by improving the safety, reliability and efficiency of its operations and is focused on delivering upstream production in line with guidance.
Outlook
Operational Updates
- Terra Nova successfully completed a nine-day turnaround in the second quarter of 2009 and is planning a 21-day turnaround in the third quarter of 2009 to complete planned regulatory and maintenance scope.
- White Rose is planning a 28-day regulatory and maintenance turnaround in the third quarter of 2009, followed by a further period of reduced production, lasting approximately 40 days, to do subsea work associated with the tie-in of the North Amethyst project.
- Buzzard is planning a 28-day turnaround in the third quarter of 2009 to do regulatory work and to complete tie-ins for the enhancement project. Production will be reduced for a further 14 days during the third quarter due to maintenance work on the Forties pipeline system.
- Syncrude is planning a 15-day turnaround in the third quarter of 2009 that will be significantly smaller in scope than the spring turnaround.
- MacKay River is planning a 14-day slowdown in the third quarter of 2009 for planned maintenance of the third-party co-generation unit.
Major Project Update
- Development drilling has commenced and installation of subsea infrastructure is underway for the North Amethyst portion of the White Rose Extensions, with the project on schedule to deliver first oil in early 2010. The West White Rose development will be divided into two stages. Stage 1 was approved in the second quarter of 2009 and development drilling and subsea installation of this stage will take place in 2010, with first oil expected in late 2010 or early 2011. Results of Stage 1, combined with ongoing evaluation, will help define the scope of Stage 2.
- In the second quarter of 2009, co-venturers in the ExxonMobil Canada Properties (ExxonMobil) operated Hibernia South project signed a non-binding Memorandum of Understanding (MOU) with the Government of Newfoundland and Labrador establishing the key fiscal, equity and operational principles for the development of the Hibernia Southern Extension satellite (Petro-Canada's working interest is 20%), with anticipated production starting in late 2009 or early 2010.
- The Syria Ebla gas project is on plan and was 70% complete at the end of the second quarter of 2009. Three wells have been drilled and handed over to the engineering, procurement and construction contractor for tie-in. The 910 km2 Ash Shaer 3D seismic shoot was completed in the second quarter of 2009 and the seismic crew moved on to Petro-Canada Cherrife acreage. First gas is expected in mid-2010.
- Following the signing of the new Libya EPSAs, work has commenced with a focus on preparing the Amal field development program and initiating the new exploration program. Seismic operations continued in the second quarter of 2009, with approximately 55% of the program completed at the end of the second quarter.
BUSINESS UNIT RESULTS
UPSTREAM
North American Natural Gas
---------------------------------------------------------------------------- Three months ended Six months ended June 30, June 30, (millions of Canadian dollars) 2009 2008 2009 2008 ---------------------------------------------------------------------------- Net earnings (loss) $ (239) $ 100 $ (241) $ 174 ---------------------------------------------------------------------------- Loss on sale of assets (1) - (106) - (104) Income tax adjustments - - 1 - Asset impairment charge (2) (158) - (158) (24) ---------------------------------------------------------------------------- Operating earnings (loss) $ (81) $ 206 $ (84) $ 302 ---------------------------------------------------------------------------- Cash flow from operating activities before changes in non-cash working capital $ 42 $ 404 $ 160 $ 668 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- (1) In the second quarter of 2008, the North American Natural Gas business unit completed the sale of its Minehead assets in Western Canada, resulting in a loss on sale of $153 million before-tax ($112 million after-tax).
(2) In the second quarter of 2009, the North American Natural Gas business unit recorded a charge of $244 million before-tax ($158 million after- tax) for impairments primarily related to the CBM assets in the U.S.
Rockies due to production performance combined with lower prices. In the first quarter of 2008, the North American Natural Gas business unit recorded a DD&A charge of $35 million before-tax ($24 million after-tax) for accumulated project development costs relating to the proposed LNG re-gasification facility at Gros-Cacouna, Quebec, which has been postponed due to global LNG business conditions.
In the second quarter of 2009, North American Natural Gas recorded an operating loss of $81 million, compared with operating earnings of $206 million in the second quarter of 2008. Results reflected lower realized prices, volumes and sulphur sales, combined with higher exploration and DD&A expenses.
North American Natural Gas production averaged 608 million cubic feet of gas equivalent/day (MMcfe/d) in the second quarter of 2009, down 8% from 660 MMcfe/d in the same quarter of 2008. Decreased production reflected reduced capital spending and natural declines.
Oil Sands
---------------------------------------------------------------------------- Three months ended Six months ended June 30, June 30, (millions of Canadian dollars) 2009 2008 2009 2008 ---------------------------------------------------------------------------- Net earnings (loss) $ (188) $ 177 $ (256) $ 289 ---------------------------------------------------------------------------- Income tax adjustments 1 - 2 2 Charges due to the deferral of the Fort Hills project (1) (185) - (241) - ---------------------------------------------------------------------------- Operating earnings (loss) $ (4) $ 177 $ (17) $ 287 ---------------------------------------------------------------------------- Cash flow from (used in) operating activities before changes in non-cash working capital $ (12) $ 231 $ (50) $ 399 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- (1) In the second quarter of 2009, the Oil Sands business unit recorded expenses of $252 million before-tax ($185 million after-tax) primarily related to writedowns of property, plant and equipment due to the indefinite deferral of the upgrading portion of the Fort Hills project.
In the first quarter of 2009, the Oil Sands business unit recorded expenses of $80 million before-tax ($56 million after-tax) to reflect costs incurred terminating certain goods and services agreements and writedowns on certain property, plant and equipment due to the deferral of the Fort Hills FID.
Oil Sands had an operating loss of $4 million in the second quarter of 2009, compared with operating earnings of $177 million in the second quarter of 2008. Results reflected lower realized prices, lower production from Syncrude and higher operating expense, partially offset by increased production from MacKay River.
Oil Sands production averaged 53,000 barrels/day (b/d) in the second quarter of 2009, relatively unchanged from 53,900 b/d in the second quarter of 2008. Increased production at MacKay River reflected strong reliability and increased capability as well as planned maintenance in the second quarter of 2008. Decreased Syncrude production reflected operational upsets and the longer than planned completion of the turnaround of Coker 8-3 in the current quarter.
International & Offshore
East Coast Canada
---------------------------------------------------------------------------- Three months ended Six months ended June 30, June 30, (millions of Canadian dollars) 2009 2008 2009 2008 ---------------------------------------------------------------------------- Net earnings (1) $ 137 $ 385 $ 241 $ 760 ---------------------------------------------------------------------------- Terra Nova insurance proceeds - - - 29 Income tax adjustments - - 1 2 ---------------------------------------------------------------------------- Operating earnings $ 137 $ 385 $ 240 $ 729 ---------------------------------------------------------------------------- Cash flow from operating activities before changes in non-cash working capital $ 221 $ 464 $ 418 $ 930 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- (1) East Coast Canada crude oil inventory movements increased (decreased) net earnings by $35 million before-tax ($24 million after-tax) and $(4) million before-tax ($(3) million after-tax) for the three and six months ended June 30, 2009, respectively. The same factor decreased net earnings by $57 million before-tax ($39 million after-tax) and $63 million before-tax ($43 million after-tax) for the three and six months ended June 30, 2008, respectively.
In the second quarter of 2009, East Coast Canada contributed $137 million of operating earnings, down from $385 million in the second quarter of 2008. Results reflected lower realized prices and production.
East Coast Canada production averaged 69,200 b/d in the second quarter of 2009, down 23% from 90,400 b/d in the same period in 2008. Hibernia production was lower due to the completion of a 25-day turnaround and natural declines, which were partially offset by strong reservoir performance and reliability. Terra Nova production was lower due to natural declines and the completion of a nine-day maintenance turnaround, while White Rose production was lower due to natural declines.
International
---------------------------------------------------------------------------- Three months ended Six months ended June 30, June 30, (millions of Canadian dollars) 2009 2008 2009 2008 ---------------------------------------------------------------------------- Net earnings (1) $ 143 $ 672 $ 184 $ 1,008 ---------------------------------------------------------------------------- Gain (loss) on sale of assets (5) 6 (5) 6 Libya EPSA ratification adjustment (2) - 47 - - Income tax adjustment (3) - 230 - 230 ---------------------------------------------------------------------------- Operating earnings $ 148 $ 389 $ 189 $ 772 ---------------------------------------------------------------------------- Cash flow from operating activities before changes in non-cash working capital $ 304 $ 635 $ 558 $ 1,191 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- (1) International crude oil inventory movements decreased net earnings by $5 million before-tax ($1 million after-tax) and $3 million before-tax ($nil after-tax) for the three and six months ended June 30, 2009, respectively. The same factor increased (decreased) net earnings by $42 million before-tax ($(14) million after-tax) and $76 million before-tax ($11 million after-tax) for the three and six months ended June 30, 2008, respectively.
(2) In the second quarter of 2008, the Company signed six new EPSAs with the Libya NOC to replace existing concession agreements and one EPSA. The new EPSAs were ratified as of the signing, with an effective date of January 1, 2008. Net earnings for the three months ended June 30, 2008 included a $47 million after-tax adjustment to recognize incremental earnings on the new EPSAs relating to the period from January 1 to March 31, 2008, which could not be recognized until ratification on June 19, 2008.
(3) In the second quarter of 2008, the International business unit recorded a $230 million future income tax recovery due to the ratification of the Libya EPSAs.
International contributed $148 million of operating earnings in the second quarter of 2009, down from $389 million in the second quarter of 2008. Lower realized crude oil prices, decreased production volumes, and higher operating and DD&A expenses were partially offset by lower exploration expense and foreign exchange gains.
International production averaged 150,600 boe/d in the second quarter of 2009, down 6% from 159,500 boe/d in the second quarter of 2008. Decreased production primarily reflected Organization of the Petroleum Exporting Countries (OPEC) quota restraints imposed in Libya and natural declines in some North Sea assets.
Exploration Update
During the first half of 2009, Petro-Canada and its partners finished operations on six wells. One well was completed as a gas discovery (L6-7 in the Netherlands sector of the North Sea). This well was started in 2008 but was completed in the first quarter of 2009. In the United Kingdom (U.K.) sector of the North Sea, one well was completed as an oil discovery (Hobby), and one well was plugged and abandoned (appraisal well for the Pink discovery). The three wells drilled in Alaska (Chandler 1, Wolf Creek 4 and Gubik 4) all encountered natural gas. Drilling operations were completed for the Wolf Creek and Gubik wells, so they were plugged and abandoned. The Chandler well was suspended for possible future testing. These wells are part of a multi-season program, and the results are being evaluated for incorporation into an overall plan to determine the commerciality of natural gas development in the region.
DOWNSTREAM
---------------------------------------------------------------------------- Three months ended Six months ended June 30, June 30, (millions of Canadian dollars) 2009 2008 2009 2008 ---------------------------------------------------------------------------- Net earnings $ 121 $ 300 $ 203 $ 484 ---------------------------------------------------------------------------- Gain on sale of assets - 1 2 2 Downstream estimated current cost of supply adjustment 137 299 152 422 Insurance premium surcharges 1 - 1 - Income tax adjustments 1 - 3 2 ---------------------------------------------------------------------------- Operating earnings (loss) $ (18) $ - $ 45 $ 58 ---------------------------------------------------------------------------- Cash flow from operating activities before changes in non-cash working capital $ 286 $ 433 $ 565 $ 741 ---------------------------------------------------------------------------- ----------------------------------------------------------------------------
In the second quarter of 2009, the Downstream business recorded an operating loss of $18 million, compared with operating earnings of $nil in the same quarter of 2008.
Refining and Supply recorded a second quarter 2009 operating loss of $60 million, down compared with a loss of $16 million in the same quarter of 2008. The increased operating loss reflected lower distillate cracking margins, unfavourable crude price differentials and higher DD&A. These factors were partially offset by an increase in realized refining margins for asphalt and coke, lubricants, heavy fuel oil and light oil products and higher gasoline cracking margins.
Marketing contributed second quarter 2009 operating earnings of $42 million, up compared with $16 million in the same quarter of 2008. Marketing results reflected higher margins and lower expenses, partially offset by lower overall volume demand.
CORPORATE
---------------------------------------------------------------------------- Three months ended Six months ended Shared Services and Eliminations June 30, June 30, (millions of Canadian dollars) 2009 2008 2009 2008 ---------------------------------------------------------------------------- Net earnings (loss) $ 103 $ (136) $ (101) $ (141) ---------------------------------------------------------------------------- Foreign currency translation gain (loss) on long-term debt 273 (13) 174 (61) Stock-based compensation expense (1) (87) (117) (112) (49) Income tax adjustments - - - 20 ---------------------------------------------------------------------------- Operating loss $ (83) $ (6) $ (163) $ (51) ---------------------------------------------------------------------------- Cash flow used in operating activities before changes in non-cash working capital $ (207) $ (188) $ (315) $ (98) ---------------------------------------------------------------------------- ----------------------------------------------------------------------------
(1) Reflected the change in the mark-to-market valuation of stock-based compensation.
Shared Services and Eliminations recorded an operating loss of $83 million in the second quarter of 2009, compared with a loss of $6 million for the same period in 2008. The increase in operating loss was due to foreign currency translation losses on cash and cash equivalents, versus a gain in the same period last year, and the elimination of profits in the upstream business units for crude oil sales to Downstream, where the crude oil still resides in Downstream's inventories, versus a recovery of profits on these sales in the same period last year.
The Company's financial capacity and flexibility remain strong. This is due to Petro-Canada being able to generate cash flow, having access to existing cash balances and significant credit facility capacity, and requiring no near-term refinancing.
Petro-Canada is one of Canada's largest oil and gas companies, operating in both the upstream and downstream sectors of the industry in Canada and internationally. The Company creates value by responsibly developing energy resources and providing world class petroleum products and services. Petro-Canada is proud to be a National Partner to the Vancouver 2010 Olympic and Paralympic Winter Games. Petro-Canada's common shares trade on the Toronto Stock Exchange (TSX) under the symbol PCA and on the New York Stock Exchange (NYSE) under the symbol PCZ.
The full text of Petro-Canada's second quarter release, including Management's Discussion and Analysis (MD&A), can be accessed on Petro-Canada's website at http://www.petro-canada.ca/en/investors/845.aspx and will be available through SEDAR at http://www.sedar.com/.
Petro-Canada will hold a conference call to discuss these results with investors on Thursday, July 30, 2009 at 9:00 a.m. eastern daylight time (EDT). To participate, please call 1-800-7... (toll-free in North America), 00-800-4222-8835 (toll-free internationally), or 416-69... at 8:55 a.m. EDT. Media are invited to listen to the call by dialing 1-800-9... (toll-free in North America) or 416-69.... Media are invited to ask questions at the end of the call. A live audio broadcast of the conference call will be available on Petro-Canada's website at http://www.petro-canada.ca/en/investors/845.aspx on July 30, 2009 at 9:00 a.m. EDT. Those who are unable to listen to the call live may listen to a recording of the call approximately one hour after its completion by dialing 1-800-4... (toll-free in North America) or 416-695-5800 (pass code number 6821571#). Approximately one hour after the call, a recording will be available on Petro-Canada's website.
LEGAL NOTICE - FORWARD-LOOKING INFORMATION
This news release contains forward-looking information. You can usually identify this information by such words as "plan," "anticipate," "forecast," "believe," "target," "intend," "expect," "estimate," "budget" or other terms that suggest future outcomes or references to outlooks. Listed below are examples of references to forward-looking information:
- business strategies and goals
- future investment decisions
- outlook (including operational updates and strategic milestones)
- future capital, exploration and other expenditures
- future cash flows
- future resource purchases and sales
- anticipated construction and repair activities
- anticipated turnarounds at refineries and other facilities
- anticipated refining margins
- future oil and natural gas production levels and the sources of their growth
- project development, and expansion schedules and results
- future exploration activities and results, and dates by which certain areas may be developed or come on-stream
- anticipated retail throughputs
- anticipated pre-production and operating costs
- reserves and resources estimates
- future royalties and taxes payable
- production life-of-field estimates
- natural gas export capacity
- future financing and capital activities
- contingent liabilities (including potential exposure to losses related to retail licensee agreements)
- the impact and cost of compliance with existing and potential environmental regulations
- future regulatory approvals
- expected rates of return
Such forward-looking information is based on a number of assumptions and analysis made by the Company. These assumptions and analysis are described in greater detail throughout this news release and include, without limitation, assumptions with respect to future commodity prices, the state of the economy, required capital expenditures, levels of cash flow, regulatory requirements, industry capacity, the results of exploration and development drilling, and the ability of suppliers to meet commitments.
Undue reliance should not be placed on forward-looking information. Such forward-looking information is subject to known and unknown risks and uncertainties, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such information. Such risks and uncertainties include, but are not limited to:
- the possibility of corporate amalgamations and reorganizations
- changes in industry capacity
- imprecise reserves estimates of recoverable quantities of oil, natural gas and liquids from resource plays, and other sources not currently classified as reserves
- the effects of weather and climate conditions
- the results of exploration and development drilling, and related activities
- the ability of suppliers to meet commitments
- decisions or approvals from administrative tribunals
- risks associated with domestic and international oil and natural gas operations
- changes in general economic, market and business conditions
- competitive action by other companies
- fluctuations in oil and natural gas prices
- changes in refining and marketing margins
- the ability to produce and transport crude oil and natural gas to markets
- fluctuations in interest rates and foreign currency exchange rates
- actions by governmental authorities (including changes in taxes, royalty rates and resource-use strategies)
- changes in environmental and other regulations
- international political events
- nature and scope of actions by stakeholders and/or the general public
Many of these and other similar factors are beyond the control of Petro-Canada. Petro-Canada discusses these factors in greater detail in filings with the Canadian provincial securities commissions and the United States (U.S.) Securities and Exchange Commission (SEC).
Readers are cautioned that this list of important factors affecting forward-looking information is not exhaustive. Furthermore, the forward-looking information in this news release is made as of July 30, 2009 and, except as required by applicable law, will not be publicly updated or revised. This cautionary statement expressly qualifies the forward-looking information in this news release.
Petro-Canada disclosure of reserves
Petro-Canada's qualified reserves evaluators prepare the reserves estimates the Company uses. The Canadian provincial securities commissions do not consider Petro-Canada's reserves staff and management as independent of the Company. Petro-Canada has obtained an exemption from certain Canadian reserves disclosure requirements that allows Petro-Canada to make disclosure in accordance with SEC standards where noted in this news release. This exemption allows comparisons with U.S. and other international issuers.
As a result, Petro-Canada formally discloses its proved reserves data using U.S. requirements and practices, and these may differ from Canadian domestic standards and practices. The use of the terms such as "probable," "possible," "resources" and "life-of-field production" in this news release does not meet the SEC guidelines for SEC filings. To disclose reserves in SEC filings, oil and gas companies must prove they are economically and legally producible under existing economic and operating conditions. Note that when the term barrels of oil equivalent (boe) is used in this news release, it may be misleading, particularly if used in isolation. A boe conversion ratio of six Mcf to one bbl is based on an energy equivalency conversion method. This method primarily applies at the burner tip and does not represent a value equivalency at the wellhead. The table below describes the industry definitions that Petro-Canada currently uses:
Definitions Petro-Canada uses Reference ---------------------------------------------------------------------------- Proved oil and natural gas reserves SEC reserves definition (Accounting (includes both proved developed Rules Regulation S-X 210.4-10, and proved undeveloped) U.S. Financial Accounting Standards Board Statement No. 69) SEC Guide 7 for Oil Sands Mining
Unproved reserves, probable and Canadian Securities Administrators: possible reserves Canadian Oil and Gas Evaluation Handbook (COGEH), Vol. 1 Section 5 prepared by the Society of Petroleum Evaluation Engineers (SPEE) and the Canadian Institute of Mining Metallurgy and Petroleum (CIM)
Contingent and Prospective Resources Petroleum Resources Management System: Society of Petroleum Engineers, SPEE, World Petroleum Congress and American Association of Petroleum Geologist definitions (approved March 2007)
Canadian Securities Administrators: COGEH Vol. 1 Section 5
Although the Society of Petroleum Engineers resource classification has categories of 1C, 2C and 3C for Contingent Resources, and low, best and high estimates for Prospective Resources, Petro-Canada will only refer to the unrisked 2C for Contingent Resources and the partially risked best estimate for Prospective Resources when referencing resources in this news release. Estimates of resources in this news release include Contingent Resources that have not been adjusted for risk based on the chance of development and partially risked Prospective Resources that have been risked for chance of discovery, but have not been risked for chance of development. Such estimates are not estimates of volumes that may be recovered and actual recovery is likely to be less and may be substantially less or zero. If a discovery is made, there is no certainty that it will be developed or, if it is developed, there is no certainty as to the timing of such development.
Canadian Oil Sands represents approximately 68% of Petro-Canada's total for Contingent and Prospective Resources. The balance of Petro-Canada's resources is spread out across the business, most notably in the North American frontier and International areas. Also, when Petro-Canada references resources for the Company, unrisked Contingent Resources are approximately 70% of the Company's total resources and partially risked Prospective Resources are approximately 30% of the Company's total resources.
Cautionary statement: In the case of discovered resources or a subcategory of discovered resources other than reserves, there is no certainty that it will be commercially viable to produce any portion of the resources. In the case of undiscovered resources or a subcategory of undiscovered resources, there is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources.
For movement of resources to reserves categories, all projects must have an economic depletion plan and may require:
- additional delineation drilling and/or new technology for unrisked Contingent Resources
- exploration success with respect to partially risked Prospective Resources
- project sanction and regulatory approvals
Reserves and resources information contained in this news release is as at December 31, 2008.
Contacts:
Investor and analyst inquiries:
Ken Hall, Investor Relations
Petro-Canada (Calgary)
(403) 296-7859
Email: investor@petro-canada.ca
Lisa McMahon, Investor Relations
Petro-Canada (Calgary)
(403) 296-3764
Email: investor@petro-canada.ca
Media and general inquiries:
Andrea Ranson, Corporate Communications
Petro-Canada (Calgary)
(403) 296-4610
Email: corpcomm@petro-canada.ca
Website: www.petro-canada.ca
Excellent and that is why price went up today and price of OIL went down (I believe)
Decmember was a brutally cold month and they did very very well.
http://www.suncor.com/default.aspx?cid=922
Dec Numbers 235,000 BOD
Suncor Energy reports oil sands production numbers for December 2008Calgary, Alberta (January 8, 2009) – Suncor Energy Inc. reported today that production at its oil sands facility during December averaged approximately 235,000 barrels per day (bpd). With the completion on schedule of unplanned maintenance activities following a fire in late November, the company achieved its revised production target for the month despite inclement weather conditions. Annual oil sands production during 2008 averaged approximately 228,000 bpd.
On a monthly basis, Suncor reports production numbers from its oil sands operation in order to provide stakeholders with a more timely review of operational performance. These numbers are preliminary and subject to adjustment. Monthly totals may differ from year-to-date total due to rounding, the impact of sales and changes in inventory. Fourth quarter and full-year 2008 production volumes will be confirmed when Suncor’s fourth quarter results are released on January 20, 2009.
This news release contains forward-looking statements identified by the word "target" and similar expressions that address expectations or projections about the future. Forward-looking statements are based on Suncor's current goals, expectations, estimates, projections and assumptions made in light of its experiences and the risks, uncertainties and other factors related to its business. Assumptions used to develop our outlook are based on year-to-date performance and management's best estimates for the remainder of the year. Readers are cautioned that actual results could differ materially from those expressed or implied as a result of changes to Suncor's plans and the impact of events, risks and uncertainties discussed in Suncor's current annual information form/form 40-F, annual and quarterly reports to shareholders and other documents filed with Canadian securities commissions at www.sedar.com and the United States Securities and Exchange Commission (SEC) at www.sec.gov.
Suncor Energy Inc. is an integrated energy company headquartered in Calgary, Alberta. Suncor’s oil sands business, located near Fort McMurray, Alberta, extracts and upgrades oil sands and markets refinery feedstock and diesel fuel, while operations throughout Western Canada produce natural gas. Suncor operates a refining and marketing business in Ontario with retail distribution under the Sunoco brand. U.S.A. downstream assets include refining operations in Colorado and retail sales in the Denver area under the Phillips 66® brand. Suncor’s common shares (symbol: SU) are listed on the Toronto and New York stock exchanges.
Sunoco in Canada is separate and unrelated to Sunoco in the United States, which is owned by Sunoco Inc. of Philadelphia. Suncor Energy (U.S.A.) Inc. is an authorized licensee of the Phillips 66® brand and marks in the state of Colorado.
- 30 -
For further information, contact:
Shawn Davis
(403) 920-8379
At 21.00 your in the money. Good Company and will get back into the 30s easily
Picked it up @19.70 and feelin' good about it.
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SUNCOR WEBSITE ~~~~~~~~~~~~~~~~~~~~ http://www.suncor.com/default.aspx
SUNCOR NEWS ~~~~~~~~~~~~~~~http://www.suncor.com/en/newsroom/404.aspx
Suncor Mining Truck
About SUNCOR
In 1967, we pioneered commercial development of the oil sands. Since then, Suncor has grown to become a major North American energy producer and marketer with a team of close to 6,500 employees.
While we work to responsibly develop hydrocarbon resources, Suncor is also investing in clean, renewable energy sources.
DISCLAIMER
Nothing in the contents transmitted on this board should be construed as an investment advisory, nor should it be used to make investment decisions. There is no express or implied solicitation to buy or sell securities. The author(s) may have positions in the stocks discussed and may trade in the stocks mentioned. Readers are advised to conduct their own due diligence prior to considering buying or selling any stock. All information should be considered for information purposes only. No stock exchange has approved or disapproved of the informationVolume | |
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