5 Best Energy Stocks For 2015: S&P 500/Barra Value(SU)
Suncor Energy Inc., together with its subsidiaries, operates as an integrated energy company. The company involves in the development of petroleum resource basins in Canada's Athabasca oil sands; acquisition, exploration, development, production, and marketing of crude oil and natural gas in Canada and internationally; transportation and refining of crude oil; and marketing of petroleum and petrochemical products primarily in Canada. Its Oil Sands segment produces bitumen recovered from oil sands through mining and in-situ technology, and upgrades it into refinery feedstock, diesel fuel, and by-products. This segment?s products include gasoline and distillates. The company?s Natural Gas segment acquires, explores, develops, and produces natural gas, natural gas liquids, oil, and by-products from reserves located primarily in western Canada, the Northwest Territories, Alaska, and the Arctic Islands. Its International and Offshore segment engages in the exploration and pro d uction of oil and gas in offshore Newfoundland and Labrador, in the North Sea, and in Libya and Syria. The company?s Refining and Marketing segment refines crude oil at Suncor's refineries in Edmonton, Alberta; Montreal, Quebec; and Sarnia, Ontario in Canada, as well as in Commerce City, Colorado into a range of petroleum and petrochemical products for sale to retail, commercial, and industrial customers. It also transports crude oil through pipelines in eastern and western Canada, as well as through wholly-owned pipelines in Wyoming and Colorado; and produces specialty lubricants and waxes. In addition, this segment operates retail sites in Canada under the Petro-Canada brand; and in Colorado under Phillips 66 and Shell brands. Suncor Energy Inc. also engages in third-party energy trading activities. The company was formerly known as Suncor Inc. and changed its name to Suncor Energy Inc. in April 1997. Suncor Energy Inc. was founded in 1953 and is headquartered in! Calgary , Canada.
Advisors' Opinion:- [By Arjun Sreekumar]
Suncor Energy's (NYSE: SU ) experience is instructive. The company is the biggest Canadian oil sands producer by output, yet it too hasn't been immune to the severe margin pressures that have eaten into oil sands producers' profits.
- [By Kenny Yang]
It's hard to have the best of both worlds, but Suncor Energy (SU) offers an attractive 2.1% dividend and a 7% production growth for its investors. The stock is trading at 11.4X 2014 earnings and 4.9X EV/EBTIDA, which is low compared to other large oil and gas producers. The author sees a 13.5% upside for the stock in the next 12 month.
- [By Arjun Sreekumar]
Total will sell its 49% stake in Voyageur to its joint venture partner, Suncor Energy (NYSE: SU ) , one of the biggest players in Alberta's oil sands, for $500 million. The company defended the move by saying that the project was "no longer justified from a strategic and economic" standpoint. By scrapping Voyageur, Total will save roughly $5 billion over the next five years.
- [By Achilles Research]
Marathon Oil has been doing well for shareholders with the second best performance in the peer group. Anadarko Petroleum (APC), which I have rated as a Sell recently because the share price has run away from its fundamentals, has returned 186% over five years. Marathon Oil achieved 124%, Occidental Petroleum (OXY) 105%, Suncor Energy (SU) 63%, Apache Corp. (APA) 20% and Devon Energy (DVN) 14%. As a value investor with a contrarian tilt I naturally look at underperformers because they often offer the best risk/reward ratio and asymmetric pay-off profiles. I also just recently added to my positions in Devon Energy and Apache Corp. as they are just too cheap to ignore (thesis here and here). Apache was extraordinarily hit on overblown fears of potential oil production interruptions in Egypt and corresponding asset sales.
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