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Suncor Energy (SU) Provides Outlook for Operations in 2015

Zacks Equity Research

Canada’s largest energy firm, Suncor Energy Inc. (SU) has provided its production outlook and capital expenditure guidance for 2015.

Additionally, the company has reconfirmed that its 2014 production is likely to be in the lower end of the 525,000–570,000 barrels of oil equivalent per day guidance. Also, the company expects the Oil Sands production to be below the lower end of its 400,000–430,000 barrels per day guidance.  

2015 Capital Expenditure

Suncor Energy expects capital spending in the range of C$7.2 billion to C$7.8 billion.

A major portion of this amount (55% or about C$4.3 billion) is directed toward growth projects, which includes more than C$2 billion allocated for Oil Sands Projects. The remaining 45% or about C$3.5 billion will be utilized for achieving safe and reliable operations and improving efficiency.

2015 Production Outlook

The company anticipates average per day production of 540,000 to 585,000 barrels of oil equivalent.

Of this, 410–440 thousand barrels per day (bbl/d) are expected to be contributed by the Oil Sands Segment. Meanwhile, about 32–36 thousand bbl/d will likely be derived from the Syncrude segment while the remaining will come from the company’s exploration and production activities.

Refinery throughput from Eastern North America is likely to be in the 190–210 thousand bbl/d range, with utilization between 86%–95%. Refinery throughput from Western North America will expectedly be in the 220–240 thousand bbl/d range, with utilization between 92%–100%.

2015 Sales Guidance

Total Oil Sands Sales is expected in the range of 405–455 thousand bbl/d. Refined Product Sales is expected to be 500–550 thousand bbl/d.

Zacks Rank

Suncor Energy currently carries a Zacks Rank #4 (Sell).

Other Stock Picks

One could consider better-ranked players from the same sector like Atlas Pipeline Partners, L.P. (APL), Cheniere Energy Partners LP. (CQP) and Murphy USA Inc. (MUSA). All these stocks sport a Zacks Rank #1 (Strong Buy).

Read the Full Research Report on SU
Read the Full Research Report on APL
Read the Full Research Report on MUSA
Read the Full Research Report on CQP


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