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Suncor Energy’s (SU - Free Report) stock has gone up 5% since its third-quarter earnings announcement on Nov 2. This rise in the stock price could be attributed to the Canadian integrated energy company’s third-quarter earnings and sales outperforming the consensus mark.
Behind the Earnings Headlines
Suncor Energy reported third-quarter 2022 operating earnings of $1.44 per share, beating the Zacks Consensus Estimate of $1.40. SU’s bottom line improved from a profit of 56 cents in the year-ago period. This outperformance could be credited to significantly higher crude oil and refined product realizations, reflecting an improved business environment in the current quarter and higher upstream production.
The quarterly operating revenues of $11.54 billion beat the Zacks Consensus Estimate by 18.5% and increased by approximately 42.3% year over year. Moreover, the company repurchased approximately C$1 billion worth of shares during the reported quarter.
Suncor Energy Inc. Price, Consensus and EPS Surprise
Upstream: Suncor’s total upstream production increased by 3.65% year over year to 724,100 barrels of oil equivalent per day (boe/d). Significantly higher crude price realizations meant that SU’s upstream segment recorded adjusted operating earnings of C$2.565 billion compared with C$1.043 billion in the prior-year quarter.
Bitumen production increased significantly from 199,600 boe/d to 240,900 boe/d, primarily due to increased production from Fort Hills. Meanwhile, oil sands volumes in the reported quarter were 405,100 boe/d compared with 405,500 boe/d in the third quarter of 2021.
During the quarter, the output from Syncrude operations decreased to 147,300 barrels per day (bpd) from 190,200 bpd a year earlier. Moreover, Fort Hills reported average third-quarter volumes of 95,800 bpd, greater than the 50,800 bpd registered in the third quarter of 2021.
Downstream: Adjusted operating earnings from the downstream unit declined to C$753 million from the year-ago figure of C$848 million. Suncor recorded impressive refined product sales in the quarter under consideration, which increased to 577,300 bpd from the prior-year quarter figure of 551,500 bpd.
Crude throughput came in at 466,600 bpd in the third quarter of 2022, up from 460,300 bpd in the year-ago period. Moreover, refinery utilization was 100% compared with 99% a year ago.
Financial Position
Total expenses in the reported quarter climbed to C$15.5 billion from C$8.9 billion in the year-earlier period. This uptick was mainly caused by higher costs related to the purchase of crude oil and products, a rise in operating, selling and general costs, a hike in financial expenses and a small increase in transportation and distribution costs.
Suncor reported third-quarter cash flow from operating activities of C$4.449 billion, down from the prior year’s C$4.718 billion. The company incurred capital expenditure worth C$1.38 billion in the quarter under discussion.
As of Sep 30, 2022, SU had cash and cash equivalents worth C$4.66 billion and total long-term debt of approximately C$13.5 billion. Its total debt to total capital was about 26.1%. In the third quarter, the company distributed C$638 billion in dividends.
Guidance
Suncor maintained its guidance for production for 2022 to the range of 740,000-760,000 boe/d. The higher end of the production range for Oil Sands operations is maintained at 415,000 bpd, for Fort Hills at 90,000 bpd, for Syncrude at 185,000 bpd and for Exploration and Production at 80,000 bpd.
Suncor also maintained its full-year outlook for the capital expenditure guidance of the C$4.9 billion-C$5.2 billion range. Finally, the full-year current income tax expense range was also maintained in the C$4.4 billion-C$4.7 billion range.
Zacks Rank
Suncor currently carries a Zacks Rank #3 (Hold). Investors interested in the energy space might look at some better-ranked stocks — Par Pacific (PARR - Free Report) , Equinor (EQNR - Free Report) and NexTier Oilfield Solutions — each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Par Pacific’s 2022 earnings stands at $5.94 per share, which indicates an increase of about 445.3% from the year-ago loss of $1.72.
The consensus mark for PARR’s 2022 earnings has been revised upward three times over the past 60 days from $4.03 to $5.94 per share.
The Zacks Consensus Estimate for Equinor’s 2022 earnings is pegged at $7.39 per share, up about 139.9% from the year-ago earnings of $3.08.
EQNR beat estimates for earnings in all the trailing four quarters, the average being around 10.2%.
The Zacks Consensus Estimate for NexTier’s 2022 earnings stands at $1.41 per share, indicating an increase of about 427.9% from the year-ago loss of 43 cents.
NEX beat estimates for earnings in all the trailing four quarters, the average being around 271%.
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Suncor (SU) Shares Rise 5% Since Q3 Earnings & Sales Beat
Suncor Energy’s (SU - Free Report) stock has gone up 5% since its third-quarter earnings announcement on Nov 2. This rise in the stock price could be attributed to the Canadian integrated energy company’s third-quarter earnings and sales outperforming the consensus mark.
Behind the Earnings Headlines
Suncor Energy reported third-quarter 2022 operating earnings of $1.44 per share, beating the Zacks Consensus Estimate of $1.40. SU’s bottom line improved from a profit of 56 cents in the year-ago period. This outperformance could be credited to significantly higher crude oil and refined product realizations, reflecting an improved business environment in the current quarter and higher upstream production.
The quarterly operating revenues of $11.54 billion beat the Zacks Consensus Estimate by 18.5% and increased by approximately 42.3% year over year. Moreover, the company repurchased approximately C$1 billion worth of shares during the reported quarter.
Suncor Energy Inc. Price, Consensus and EPS Surprise
Suncor Energy Inc. price-consensus-eps-surprise-chart | Suncor Energy Inc. Quote
Segmental Performance
Upstream: Suncor’s total upstream production increased by 3.65% year over year to 724,100 barrels of oil equivalent per day (boe/d). Significantly higher crude price realizations meant that SU’s upstream segment recorded adjusted operating earnings of C$2.565 billion compared with C$1.043 billion in the prior-year quarter.
Bitumen production increased significantly from 199,600 boe/d to 240,900 boe/d, primarily due to increased production from Fort Hills. Meanwhile, oil sands volumes in the reported quarter were 405,100 boe/d compared with 405,500 boe/d in the third quarter of 2021.
During the quarter, the output from Syncrude operations decreased to 147,300 barrels per day (bpd) from 190,200 bpd a year earlier. Moreover, Fort Hills reported average third-quarter volumes of 95,800 bpd, greater than the 50,800 bpd registered in the third quarter of 2021.
Downstream: Adjusted operating earnings from the downstream unit declined to C$753 million from the year-ago figure of C$848 million. Suncor recorded impressive refined product sales in the quarter under consideration, which increased to 577,300 bpd from the prior-year quarter figure of 551,500 bpd.
Crude throughput came in at 466,600 bpd in the third quarter of 2022, up from 460,300 bpd in the year-ago period. Moreover, refinery utilization was 100% compared with 99% a year ago.
Financial Position
Total expenses in the reported quarter climbed to C$15.5 billion from C$8.9 billion in the year-earlier period. This uptick was mainly caused by higher costs related to the purchase of crude oil and products, a rise in operating, selling and general costs, a hike in financial expenses and a small increase in transportation and distribution costs.
Suncor reported third-quarter cash flow from operating activities of C$4.449 billion, down from the prior year’s C$4.718 billion. The company incurred capital expenditure worth C$1.38 billion in the quarter under discussion.
As of Sep 30, 2022, SU had cash and cash equivalents worth C$4.66 billion and total long-term debt of approximately C$13.5 billion. Its total debt to total capital was about 26.1%. In the third quarter, the company distributed C$638 billion in dividends.
Guidance
Suncor maintained its guidance for production for 2022 to the range of 740,000-760,000 boe/d. The higher end of the production range for Oil Sands operations is maintained at 415,000 bpd, for Fort Hills at 90,000 bpd, for Syncrude at 185,000 bpd and for Exploration and Production at 80,000 bpd.
Suncor also maintained its full-year outlook for the capital expenditure guidance of the C$4.9 billion-C$5.2 billion range. Finally, the full-year current income tax expense range was also maintained in the C$4.4 billion-C$4.7 billion range.
Zacks Rank
Suncor currently carries a Zacks Rank #3 (Hold). Investors interested in the energy space might look at some better-ranked stocks — Par Pacific (PARR - Free Report) , Equinor (EQNR - Free Report) and NexTier Oilfield Solutions — each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Par Pacific’s 2022 earnings stands at $5.94 per share, which indicates an increase of about 445.3% from the year-ago loss of $1.72.
The consensus mark for PARR’s 2022 earnings has been revised upward three times over the past 60 days from $4.03 to $5.94 per share.
The Zacks Consensus Estimate for Equinor’s 2022 earnings is pegged at $7.39 per share, up about 139.9% from the year-ago earnings of $3.08.
EQNR beat estimates for earnings in all the trailing four quarters, the average being around 10.2%.
The Zacks Consensus Estimate for NexTier’s 2022 earnings stands at $1.41 per share, indicating an increase of about 427.9% from the year-ago loss of 43 cents.
NEX beat estimates for earnings in all the trailing four quarters, the average being around 271%.