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Re: NYBob post# 102

Monday, 04/11/2011 12:18:56 PM

Monday, April 11, 2011 12:18:56 PM

Post# of 196
SU w/ limited risk. Sounds good to me!



Lots of Leverage, Little Risk

Suncor Energy Inc. was founded in 1953 and is headquartered in Calgary, Canada. The company has a market cap of $70 billion, with an enterprise value of $82.75 billion once net debt and cash are accounted for. Suncor has refineries, wholly owned pipelines and specialty lubricant products. It sells gasoline in retail locations in Canada under the Petro-Canada brand and in the United States under the Phillips 66 and Shell brands.

But most importantly, it boasts strong and reliable crude oil production from its oil sands operations. So already we're talking about a company that is vertically integrated (with its wide array of refineries, pipelines, and gas stations) and horizontally integrated (with its U.S. and Canadian retail outlets). This is Suncor's greatest strength: Diverse and reliable production and revenue.

That's particularly important in light of the civil uprisings in Egypt, Libya and Yemen. If you're anything like me, you're following the revolution in the Middle East with one eye while the other watches the price of gasoline regularly increase. And if you're looking for stable energy companies capable of leveraging higher oil prices, but not susceptible to the violence in the Middle East, you might consider this Canada-based company.


This is not an offer to buy or sell securities or any kind of investment advice. Oil investment carries very high risks so consult a licensed professional making any decisions. My resume is real time on Twitter @TurnKeyOil.

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