Back to top

Analyst Blog

Canada’s largest energy firm, Suncor Energy Inc. (SU - Analyst Report) has presented its total oil equivalent production and capital spending projections for 2014.

Suncor expects total output of 565,000–610,000 barrels of oil equivalent per day (boe/d) in 2014 reflecting year-over-year growth of roughly 10%. Moreover, Suncor, one of the largest owners of oil sands in the world, anticipates oil sands production to grow more than 14% to 400,000–430,000 barrels per day (bpd).

Suncor is expecting no primary turnarounds to hamper oil sand operations in 2014. Additionally, the company intends to improve its operational efficiency and implement cost saving initiatives by reducing expenses related to oil sand operation below $35 per barrel in 2014.

Moreover, Suncor is planning to invest roughly C$7.8 billion in 2014. In addition, C$4.2 billion of capital spending will be allocated for growth projects. Out of C$4.2 billion, roughly C$1.9 billion will be utilized for enhancing oil sand developments like the Fort Hills joint venture and MacKayRiver 2 debottlenecking projects. Part of the allocated capital will also be used for exploration and production. The company has also kept aside C$220 million of growth capital for refining and marketing operations and it will primarily be utilized for supplying inland crude to its refinery in Montreal.

Calgary, Alberta-based Suncor is Canada’s premier integrated energy company. The company’s operations include oil sands development and upgrading, conventional and offshore crude oil and gas production, petroleum refining, and product marketing under the Petro-Canada brand.

Suncor currently holds a Zacks Rank #3 (Hold), implying that it is expected to perform in line with the broader U.S. equity market over the next one to three months.

Meanwhile, one can look at better-ranked energy firms like Harvest Natural Resources Inc. (HNR - Snapshot Report), VOC Energy Trust (VOC - Snapshot Report) and SM Energy Company (SM - Analyst Report) that offer value. All the stocks sport a Zacks Rank #1 (Strong Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
QIHOO 360 T… QIHU 94.90 +4.79%
PILGRIM'S P… PPC 31.47 +3.55%
CLAYTON WIL… CWEI 138.80 +3.43%
ACTELION LT… ALIOF 124.80 +2.97%
CALLON PETE… CPE 11.45 +2.69%