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Suncor's (SU) Output Takes a Hit Amid Operational Issues

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One of Canada’s largest integrated oil and gas producers, Suncor Energy SU said that production was lower than anticipated at two of its oil sands sites last month as a consequence of operational mishaps.
The company also confirmed the latest safety lapse at its base plant on Jan 6 where a heavy haul truck hit another one at the mine as a result of which two workers in the lead truck suffered minor injuries and the driver of the other truck died. This is said to be the fourth fatality at a Suncor facility since late 2020.

Coming back to operational outages, malfunctions at Syncrude and Firebag lowered oil production by about 195,000 barrels per day (bpd) in the latter half of December. The total output for 2021 was around 732,000 bpd, down about 1% from the lower end of its Oct 27 guidance range of 740,000 bpd to 780,000 bpd, per the company. Suncor added that the sites have returned to normal output and production estimates for 2022 remain unaffected.

At Syncrude, complications were related to failures in chains that drove crushing equipment as well as the delay in repair due to harsh weather conditions. Meanwhile, at Firebag, 170 wells were shut down and two plants went offline due to frozen parts.

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.

Suncor currently has a Zacks Rank #5 (Strong Sell). Investors interested in the energy sector might look at the following companies that presently carry a better Zacks Rank. Equinor EQNR, Murphy USA MUSA and REX American Resources REX, each sport 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 Equinor’s 2022 earnings is projected at $3.87 per share, up about 17% from the projected year-ago earnings of $3.31.

The Zacks Consensus Estimate for Equinor’s 2022 earnings has been revised upward three times over the past 60 days from $3.46 to $ 3.87 per share. EQNR stock has increased significantly around 46.7% in a year.

Murphy USA is valued at around $5 billion. The Zacks Consensus Estimate for Murphy USA’s 2022 earnings has been revised 17.2% upward over the past 60 days from 9.45 to 11.08.

Murphy USA beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters, the average being 20.9%. MUSA stock has rallied around 52.4% in a year.

REX American’s stock price has increased about 12.9% in the past year. REX American beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 93.9%.

The Zacks Consensus Estimate for REX’s 2022 earnings is fixed at $9.30 per share, with an increase of 12.4% from the projected year-ago earnings of $8.27.


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