Suncor (SU) to Put Emphasis on Hydrogen and Renewable Fuels
The Calgary-based Canadian integrated energy company, Suncor Energy SU, announced that it would reinforce its focus on hydrogen and renewable fuels to fast-track advancement toward its goal to be a net-zero organization by 2050 and increase shareholder returns via its core business.
As a consequence, Suncor will be divesting its wind and solar assets to optimize its portfolio, drive shareholder returns and continue to reduce emissions.
The decision to divest its renewable energy assets remarks the end of SU’s two-decade foray into wind and solar power. The company collaborated with Enbridge Inc. ENB in 2002 to build one of the first renewable energy projects in Canada. Subsequently, Suncor built eight wind power projects across the Canadian states of Saskatchewan, Alberta and Ontario.
Suncor’s president and chief executive officer, Mark Little, stated that though his company is in a good situation of being long on prospects, Suncor is still altering its portfolio for fit and focus. By adjusting the portfolio, the company uses its force, competitive advantages and assets to augment shareholder value over the long term and meet its emissions reduction objectives, he said.
In line with its portfolio optimization strategy, Suncor recently declared its intent to divest its exploration and production assets in Norway along with the premeditated sell-down of its Rosebank stake in the U.K. North Sea. The disposition process is underway, with an anticipated close later this year.
Founded in 1917, 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. It 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.
Headquartered in Calgary, Alberta, Enbridge Inc. is a leading energy infrastructure company. One of its businesses is the transportation of energy through the most extensive and advanced crude and liquids pipeline system, which spreads across 17,809 miles globally. Through the Mainline and Express pipelines, the company transports 3 million barrels of crude oil every day, which accounts for almost 63% of the Canadian crude oil production that is transported to the United States.
Suncor currently carries a Zacks Rank #2 (Buy). Some other top-ranked stocks from the energy sector that warrant a look include Cenovus Energy CVE and TotalEnergies TTE, 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 Cenovus’ 2022 earnings is pegged at $2.08 per share, up 156.8% from the projected year-ago earnings of 81 cents.
Cenovus Energy’s stock has rallied 117.1% in a year. The Zacks Consensus Estimate for CVE’s 2022 earnings has been revised 29.2% upward over the past 60 days.
The Zacks Consensus Estimate for TotalEnergies’ 2022 earnings is pegged at $9 per share, which is about 34.7% higher than the year-ago estimate of $6.68.
TotalEnergies beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters, the average being about 18.9%. TotalEnergies is valued at around $129 billion.
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