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Suncor's Alberta Firebag Oil Sands Site Breaks Crude Output Record

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Suncor Energy Inc. (SU - Free Report) recorded the highest crude output in October from its wells in Alberta on gains at the Firebag oil sands site. Owing to the record high production, the site has also been termed as “Rock Star” by the chief executive of the company.

SU Hits Production Milestone

With data available from 2018, SU’s wells in the area recorded the highest output of 284,000 barrels per day in October. The number also indicates a 14% rise in output compared with September levels. The record growth in production can be attributed to the steam-assisted gravity drainage oil sands well site, called Firebag, where the total output rose to an all-time high of 251,000 barrels per day, showcasing a 2% hike in production.

Firebag’s Importance for SU’s Growth

Firebag can be seen as a key asset for the company which can offset the decline in output from other mature assets. This site has the capability to replace the loss of 30% of its production when the company’s Base Plant oil sands mine’s life is anticipated to run out in about next 10 years and an approval to extend the mine’s life was not granted by the federal government. With the Firebag oil sands site, the company has been able to achieve five record months of output this year.

Although SU’s base plant output will be replaced with the increased production capacity of both Fort Hills mine and Firebag, but it has placed more confidence in the latter due to the site’s overwhelming results.

SU’s Zacks Rank

Alberta-based Suncor Energy 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. Currently, SU has a Zacks Rank #3 (Hold).

Key Picks

Investors interested in the energy sector might look at some better-ranked stocks like Mach Natural Resources LP (MNR - Free Report) , TechnipFMC plc (FTI - Free Report) and Targa Resources Corp. (TRGP - Free Report) .While Mach currently sports a Zacks Rank #1 (Strong Buy), TechnipFMC and Targa Resources each carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Mach Natural Resources is an independent upstream oil and gas company that focuses on the acquisition, development and production of oil, natural gas and natural gas liquids reserves. The Zacks Consensus Estimate for MNR’s 2024 earnings indicates 200% year-over-year growth.

London-based TechnipFMC is a leading manufacturer and supplier of products, services and fully integrated technology solutions for the energy industry. The Zacks Consensus Estimate for FTI’s 2024 earnings indicates 251.11% year-over-year growth.

Houston, TX-based Targa Resources  is a premier energy infrastructure company and a leading provider of integrated midstream services in North America. The Zacks Consensus Estimate for TRGP’s 2024 earnings indicates 71.58% year-over-year growth.


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