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Activist Investor Pursues Alterations at Suncor Energy (SU)
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Elliott Investment Management LP, considered to be North America’s most aggressive activist investor, is pushing the Canadian integrated energy company Suncor Energy (SU - Free Report) to revamp its board and management team by adding new directors and initiating a strategic review.
Elliott, which owns a 3.4% interest in Suncor, argued that the company’s shares have underperformed even though crude prices have risen to multi-year highs. The activist investor called Suncor a leader in the Canadian energy industry and mentioned that it faces operational challenges and safety concerns. Since 2014, 12 employees and contractors have died in fatal accidents.
The investment firm wants SU to add five new directors to the company’s 11-member board, with the knowledge of the Canadian energy industry, and boost capital returns. It also wants Suncor to look for opportunities beyond its core oilsands business along with the possible sale of the company’s Petro-Canada 1,800-location retail network.
Elliott’s partner John Pike and portfolio manager Mike Tomkins stated in their letter to Suncor’s board that the status quo at the company is not working. "Our goal is to restore Suncor to what it once was: the leader of the Canadian energy industry," they said. However, the company mentioned that it would examine Elliott's recommendations and looks forward to engaging with the firm but added that it is "confident" about its approach and "will continue to execute" it.
Founded in 1917, Alberta-based Suncor Energy, Inc. 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. SU is one of the largest owners of oil sands worldwide. The company gained new oil sands properties to supplement its existing operations in northern Alberta, making it the dominant producer in the region where reserves are second only to Saudi Arabia.
The Zacks Consensus Estimate for Cenovus Energy’s 2022 earnings is pegged at $2.62 per share, up 223.5% from the projected year-ago earnings of 81 cents.
Cenovus Energy’s stock has rallied 130.3% in a year. The Zacks Consensus Estimate for CVE’s 2022 earnings has been revised 48% upward over the past 60 days.
The Zacks Consensus Estimate for Imperial Oil’s 2022 earnings is projected at $6.69 per share, up about 140.7% from the projected year-ago earnings of $2.78.
Imperial Oil’s stock has gone up 67.6% in a year. The Zacks Consensus Estimate for IMO’s 2022 earnings has been revised about 38% upward over the past 60 days from $4.85 per share to $6.69.
The Zacks Consensus Estimate for Canadian Natural’s 2022 earnings has been revised upward by about 47.2% over the past 60 days from $5.84 to $8.6 per share. Canadian Natural’s stock has increased 103.5% in a year.
The Zacks Consensus Estimate for CNQ’s 2022 earnings is projected at $8.60 per share, up about 72.3% from the projected year-ago earnings of $4.99.
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Activist Investor Pursues Alterations at Suncor Energy (SU)
Elliott Investment Management LP, considered to be North America’s most aggressive activist investor, is pushing the Canadian integrated energy company Suncor Energy (SU - Free Report) to revamp its board and management team by adding new directors and initiating a strategic review.
Elliott, which owns a 3.4% interest in Suncor, argued that the company’s shares have underperformed even though crude prices have risen to multi-year highs. The activist investor called Suncor a leader in the Canadian energy industry and mentioned that it faces operational challenges and safety concerns. Since 2014, 12 employees and contractors have died in fatal accidents.
The investment firm wants SU to add five new directors to the company’s 11-member board, with the knowledge of the Canadian energy industry, and boost capital returns. It also wants Suncor to look for opportunities beyond its core oilsands business along with the possible sale of the company’s Petro-Canada 1,800-location retail network.
Elliott’s partner John Pike and portfolio manager Mike Tomkins stated in their letter to Suncor’s board that the status quo at the company is not working. "Our goal is to restore Suncor to what it once was: the leader of the Canadian energy industry," they said. However, the company mentioned that it would examine Elliott's recommendations and looks forward to engaging with the firm but added that it is "confident" about its approach and "will continue to execute" it.
Founded in 1917, Alberta-based Suncor Energy, Inc. 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. SU is one of the largest owners of oil sands worldwide. The company gained new oil sands properties to supplement its existing operations in northern Alberta, making it the dominant producer in the region where reserves are second only to Saudi Arabia.
Suncor currently sports a Zacks Rank #1 (Strong Buy). Investors interested in the energy space might also look at the following companies — Cenovus Energy (CVE - Free Report) , Imperial Oil (IMO - Free Report) and Canadian Natural (CNQ - Free Report) — each sporting a similar Zacks Rank. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Cenovus Energy’s 2022 earnings is pegged at $2.62 per share, up 223.5% from the projected year-ago earnings of 81 cents.
Cenovus Energy’s stock has rallied 130.3% in a year. The Zacks Consensus Estimate for CVE’s 2022 earnings has been revised 48% upward over the past 60 days.
The Zacks Consensus Estimate for Imperial Oil’s 2022 earnings is projected at $6.69 per share, up about 140.7% from the projected year-ago earnings of $2.78.
Imperial Oil’s stock has gone up 67.6% in a year. The Zacks Consensus Estimate for IMO’s 2022 earnings has been revised about 38% upward over the past 60 days from $4.85 per share to $6.69.
The Zacks Consensus Estimate for Canadian Natural’s 2022 earnings has been revised upward by about 47.2% over the past 60 days from $5.84 to $8.6 per share. Canadian Natural’s stock has increased 103.5% in a year.
The Zacks Consensus Estimate for CNQ’s 2022 earnings is projected at $8.60 per share, up about 72.3% from the projected year-ago earnings of $4.99.