Kazakhstan has delayed the startup of crude oil exports from its giant Tengiz oilfield by way of the Baku-Tbilisi-Ceyhan pipeline, four sources told Reuters on Friday.
Kazakhstan energy company Kazmunaigaz (KMG) has pushed back the restart of crude oil exports from the giant Tengiz oilfield after BP declared force majeure on crude oil loadings from the Ceyhan port.
"Force majeure was declared in Ceyhan, and (Tengiz) crude supplies to BTC were put on hold," a market source told Reuters.
It’s good to hear. I need more shares to round out my position
Yes no kidding. They’re making tons of $$ and buying back their stock. This is a safe investment with quite a bit of upside.
This stock is a no brainer. We'll see $30/s before years end.
I may have the wrong spot to bring out a grievance with this company. I live in a community in Southen Alberta and not far from me there is a beautiful coulee setting where a reservoir was constructed some time ago. The North end of the reservoir has a very industrial look due to the dam that was built. The south end had a very natural look when looking up from the waters edge along its coulee walls last year. Can’t say the same anymore.
Suncor and partners and I don’t understand the actual structure or interest in the groups has decided to build an energy wind farm to the east of the Forty Mile coulee walls. I’m not opposed to industry it’s something we live and see every where we go on the prairies but there are those few sanctuaries tucked down in between coulee walls that takes you away from work and the site of industry being every where you go on the prairies.
If they had made a buffer zone for there wind farm from the edge of the coulee so the industrial wind farm would of been out of site from the waters edge I wouldn’t be writing this. We don’t have many special areas like the Forty Mile reservoir and why would Suncor and there interested groups want to ruin that for so many living along the number three corridor from Medicine Hat too Lethbridge Alberta.
I’m asking the south end of the reservoir to be free of the site of the wind mills from the bottom of the coulee while relaxing on the water. It’s a very special escape for me and close to home. To find another like it I would having to make a two hour drive. I can only speak for my self but what is happening there at the Forty Mile reservoir is in my opinion a real shame.
Maybe the voice of the shareholders could bring notice to what is happening there.
Is possibly (likely ?) just ALL algorithms . . . . taking advantage of.....circumstances.
Artificial Intelligence - knows what to look for - (as well as what to CREATE)....
Of course it's been programmed by "technical analysts" - by humans such as myself.
A Sewer worker / Ironworker / Groundskeeper Analyst
$SU Suncor Energy (NYSE:SU) announces better than expected Q4 earnings and a 12.5% increase in its quarterly dividend to $0.36/share.
SU reports Q4 operating profit of C$0.79/share, ahead of the C$0.72 analyst consensus estimate and above C$0.38 in the same quarter a year ago, and funds from operations hit a quarterly record $3B, well above the $2.4B in Q4 2016.
SU says Q4 production from Alberta’s oil sands rose 3.1% Y/Y to 446.8K bbl/day while operating cash costs fell to C$24.20/bbl vs. C$24.95/bbl in the year-ago period, and the company's share of production at the Syncrude joint venture fell 6.7% to 174.4K bbl/day while operating cash costs edged up to C$32.80/bbl vs. C$32.55/bbl a year ago.
"With Fort Hills and Hebron both successfully commissioned and now producing oil, the safe and steady ramp-up of production is proceeding as planned," CEO Steve Williams says.
Syncrude starts crude shipments from Mildred Lake upgrader
Suncor Energy (SU +0.3%) says the Syncrude Canada oil sands project has resumed shipping crude from its Mildred Lake upgrader after cutting production due to a fire at the plant in March.
SU says shipments are currently at 140K bbl/day and should ramp up to full rates of 350K bbl/day in June, which is in line with its previous forecasts, as maintenance on other units wraps up.
Suncor maintains 2017 production guidance despite Syncrude outage
Suncor Energy (NYSE:SU) says it does not expect a change to overall 2017 production guidance from the current outage at the Syncrude plant in Alberta, as strong production from oil sands and offshore operations should offset the impact.
SU says the damage at Syncrude largely was isolated to a piperack adjacent to the hydrotreater, and it has developed an accelerated repair schedule to achieve restart of pipeline shipments at ~50% capacity in early May and full production rates by the end of June.
Syncrude has the capacity to produce 350K bbl/day, but production in April was cut to zero and brought forward planned maintenance after a fire that damaged the facility.
Suncor Energy added to Conviction Buy List at Goldman
Suncor Energy (SU +1.7%) is higher after Goldman Sachs adds the stock to its Conviction Buy List and assigns a $38 price target, forecasting that revenue from its new Hebron field and Fort Hills projects will mean more production and cash flow.
Goldman believes SU has the ability to not just break even, but generate "strong" free cash flow, perhaps even at lower oil prices following the company's strides in lowering its cost of production in recent years; the firm thinks SU would apply the cash to stock buybacks and dividend hikes.
Even with the cost advantage, Goldman believes investors are undervaluing SU shares, and that the stock trades at an attractive discount to peers.
Other Goldman favorites among oil and gas producers and refiners are Marathon Petroleum, Valero Energy, Husky Energy and Chevron.
Syncrude cuts April production to zero, opens door for Mexico
Canadian crude shipments to the U.S. are poised to shrink after the Syncrude oil sands project tells customers they will not receive any supply during April from its 350K bbl/day upgrader, Bloomberg reports.
Syncrude has cut its production to zero for all of April following a fire last month, according to the report, yesterday sending Western Canadian Select crude to its highest level since June 2015, when wildfires in Alberta disrupted production.
The loss of the Canadian shipments comes as U.S. refiners are returning from seasonal maintenance and shipments from the Middle East are declining; analysts say Mexico stands to benefit from the disruption, as the higher heavy Canadian crude prices make Mexico's similar Maya grade more attractive to U.S. Gulf Coast refiners.
Syncrude is majority owned by Suncor Energy (SU +0.4%), with other partners including Imperial Oil (IMO +1.2%), Canadian Oil Sands (OTCQX:COSWF), Murphy Oil (MUR +1.4%), Sinopec (SNP +0.8%) and Cnooc's (CEO +0.8%) Nexen.
meanwhile---back at the ranch-----
SMOKEY THE BEAR , is putting up thousands of no smoking signs
that says 'DON'T GIVE FIRE A PLACE TO START'
Consolidation here is critical to emerge a leader in next upcycle.
Agreed looks like Suncor is trying to get as much of the market share as possible while oil is down. Should pay off big when prices come back up.
Very positive step in my opinion.
Sounds like they shook hands on that deal today.
Suncor Energy (NYSE:SU) says it has offered to acquire all outstanding shares of Canadian Oil Sands (OTCQX:COSWF) for ~C$4.3B ($3.3B), a 43% premium over Friday's closing price.
Including the company’s estimated outstanding net debt of C$2.3B as of June 30, the total transaction value would be ~C$6.6B.
The offer for CPSWF, which owns 37% of the Syncrude oil sands consortium, comes as the company struggles with a slumping stock price due partly to low crude prices.
For SU, the deal would give it a growing presence in the Canadian oil sands after recently boosting its stake in the Fort Hills oil sands project in Alberta to just over 50% by buying a 10% stake from project partner Total.
A coalition of Canadian First Nations, environmentalists and companies including Suncor Energy (NYSE:SU) calls for industry and government to seek aboriginal consent when working with indigenous groups.
The report from the Boreal Leadership Council says Canada's principle of free, prior and informed consent - the right of native people to offer or withhold consent to development that might impact their territories - is crucial to ensuring the country's vast natural resources can be extracted.
Disputes with First Nations groups have contributed to delays on some major energy infrastructure projects, such as Enbridge's (NYSE:ENB) Northern Gateway pipeline to Canada's Pacific coast.
Suncor Energy (SU -0.5%) says it expects greenhouse gas emissions from its operations to rise 28% to 26.2M metric tons in 2019, from 20.5M last year, according to the company's latest annual sustainability report.
Suncor (SU +5.7%) CEO Steve Williams says prices for oil and gas asset have fallen enough to make acquisitions more attractive, but that his company is not actively pursuing any specific targets.
Is Suncor Energy Inc. Really a Good Investment? (3/06/15)
Suncor Energy Inc. (TSX:SU)(NYSE:SU) is one of the most popular stocks in Canada, and investors could be forgiven for thinking the company is the holy grail of stock picks in the energy patch.
After all, Warren Buffett just added to his sizeable Suncor position, and you would be hard pressed to find anyone saying the stock should be avoided.
Let’s take a look at Suncor to see what all the excitement is about.
Shareholders get returns through stock price appreciation and dividend payments.
Investors who bought Suncor’s stock 20 years ago have enjoyed a 1,500% increase in the share price. On the dividend side, the company has increased the quarterly payout by more than 800% in the last 10 years, from three cents to 28 cents per share.
Not too shabby.
Repurchasing shares is also an effective way a company can reward investors because every share that is purchased and cancelled gives the remaining shareholders a bigger slice of the pie.
Back in September 2011, there were 1.574 billion Suncor shares outstanding. At the end of 2014, that number was 1.444 billion. That means the company bought back and cancelled 130 million shares, or more than 8% of the outstanding stock in just three years.
Share buybacks also suggest the company’s leaders are making disciplined capital-allocation choices. Choosing to return cash to stockholders instead of investing it means the company is sticking to its return on capital objectives.
Note: Suncor’s buyback program is currently on hold, and its 2015 capital program has been reduced by $1 billion to accommodate weakness in the oil market.
Suncor’s shares are actually trading higher than they were 12 months ago, but oil prices are still 50% below their levels at this time last year. This is a bit concerning. A weak Canadian dollar offsets the drop a bit, but the stock was either undervalued then, or is fully valued now.
Another issue to consider is the global movement to divest holdings in fossil fuel stocks. Last September, the Rockefeller Brothers Fund joined a group of 800 governments, institutions, and private investors who have said they will exit fossil fuel investments in the next five years. At this point, I think the threat to Suncor is minimal. More than 60% of Suncor is owned by institutional investors, but they are unlikely to divest as long as Suncor remains a profitable holding.
The threat of new climate change regulations is also coming onto the radar. In order to keep global warming below the critical two-degrees point, energy companies could be forced to permanently abandon reserves. For political and economic reasons, that’s unlikely to happen anytime soon.
So, should you buy Suncor?
The company’s integrated business model offers investors a hedge against falling oil prices. Suncor has four world-class refineries and a great retail network of service stations. These bring in reliable revenues that help offset lower income from the upstream operations. Oil prices could take another run at $40 or even go lower, but analysts tend to believe prices will eventually move back to $70 or $80 per barrel.
Suncor is a solid long-term holding. Given the current volatility in the oil market, the stock is probably a hold right now. New investors might get a shot at a better entry point in the next few months.
Alberta likely to face recession because of low oil prices (1/13/15)
TORONTO — Alberta’s oil-heavy economy will likely dip into recession as oil prices plunge, according to a report by a Canadian economic think-tank.
In another sign of trouble, Canada’s largest oil sands company, Suncor Energy Inc, announced massive layoffs Tuesday.
The Conference Board of Canada said the western Canadian province’s latest employment and new housing start numbers are holding steady, but that Alberta will slip into recession if oil prices stay low. Alberta has the world’s third-largest oil reserves after Venezuela and Saudi Arabia, and Canadian oil is the single largest source of U.S. oil imports.
“It’s going to be very hard for Alberta to avoid a recession this year,” said Glen Hodgson, the think tank’s chef economist.
The price of a barrel of oil has plummeted from $105 as recently as June to $45.89 on Tuesday — its lowest price in six years.
“Going forward, the province is certain to suffer, especially on the employment front, from the drop in oil prices — and it is likely to slip into recession,” Daniel Fields, an economist at the not-for-profit research organization, said in the report released late Monday.
Suncor announced after markets closed Tuesday that it is reducing its workforce by 1,000 and cutting $1 billion from its capital budget in response to plummeting crude oil prices.
The Calgary-based oil sands giant said the job cuts will mainly affect contractors, but include some employee positions as well.
In November, Suncor predicted capital spending for 2015 would range between $7.2 billion and $7.8 billion.
Projects that haven’t yet been given a final go-ahead by Suncor’s board are being deferred, such as expansions to the MacKay River project in northeastern Alberta and the White Rose development off the east coast.
But major projects under construction such as the $13.5-billion Fort Hills mine north of Fort McMurray, Alberta are moving ahead as planned.
However, Alberta’s premier disputed the Conference Board’s predictions that his province could slip into recession.
“I didn’t find their analysis to be particularly cogent to be frank, and the opinion that they put forward is an outlier among all of the other opinions that have been put forward by every one of Canada’s chartered banks,” Jim Prentice said during a press conference Tuesday. “And by other respected forecasters.”
Prentice, however, warned Albertans they face several difficult years in response to low oil prices. He said it’s a very different situation than the 2008 global financial crisis, when Canada avoided the worst effects because of a strong financial system.
The deputy head of Canada’s central bank, Timothy Lane, said if crude prices persist, they will significantly discourage investment in the oil sector, which he said accounts for about 3 percent of Canada’s gross domestic product. The central bank said that low oil and commodity prices are putting the Canadian economy’s post-recession recovery at risk.
His remarks follow Bank of Canada governor Stephen Poloz’s statement last month that low oil prices could knock 0.3 percentage points off the pace of economic growth.
Last year, Alberta’s economy grew by 3.9 percent, according the province’s website. Alberta has led all of Canada’s provinces in GDP growth over the past two decades, due in large part to its oil industry revenues.
But Hodgson said that could easily change. Even if oil prices rebound to $65 per barrel, he forecasts that investment, profits and consumer spending will be down.
Already, Calgary-based Canadian Natural Resources Limited, an oil and gas exploration, development and production company, announced this week that it will spend $2.4 billion less than expected this year. Other Canadian energy companies such as Cenovus and Husky Energy have also recently announced reduced capital budgets.
Canadian oil firm to cut 1,000 jobs, curb spending (1/13/15)
HOUSTON – Canadian oil sands firm Suncor Energy said Tuesday it plans to cut 1,000 jobs, primarily contract positions, as it trims $1 billion out of its investment plans this year.
It’s also gutting its operational expenses by $600 million to $800 million over the next two years. Suncor is the latest to burn off budget fat as petroleum prices crash, joining peers like Canadian Natural Resources, which said this week it anticipates a $2 billion spending cut of its own.
“Cost management has been an ongoing focus, with successful efforts to reduce both capital and operating costs well underway before the decline in oil prices,” Suncor CEO Steve Williams said in a written statement. “However, in today’s low crude price environment, it’s essential we accelerate this work.”
That involves deferring some oil projects and implementing a hiring freeze for non-critical jobs. The Calgary-based firm said it expects to produce from its oil sands operations 540,000 to 585,000 barrels of oil a day this year. Despite the budget cut, Suncor’s projections for its oil production remains unchanged from prior estimates, it said.
Andrew the price of oil will eventually come back (it always does) and Suncor along with the other energy stocks will rise again. Put your shares on a shelf and forget about them for the time being. I originally bought in to SU back when it was $27.70 CDN and I still have those shares, if this dips down to near those levels again I will double down.
Look back at my posts... I have been working for Suncor Energy off and on for the past 5 years on various contract roles, this Wednesday I will be leaving Suncor and moving over to help Husky startup their Sunrise SAGD project.
The small players are shelving expansion plans in the Athabasca Oilsands region right now, but the big boys are forging on with current plans.
Suncor Fort Hills $14.7 billion project is still a go and construction is moving ahead as planned.