tag:blogger.com,1999:blog-1527840491496268397.post2099377907641896696..comments2024-03-08T11:20:30.095-07:00Comments on Credit Bubble Stocks: Suncor Energy Reports Second Quarter 2022 Results ($SU)Unknownnoreply@blogger.comBlogger4125tag:blogger.com,1999:blog-1527840491496268397.post-19936058365419882052022-10-27T15:43:32.728-07:002022-10-27T15:43:32.728-07:00"Selling boondoggles, acquiring barrels"...<b>"Selling boondoggles, acquiring barrels"</b><br /><br /><i>Suncor Energy (TSX: SU) (NYSE: SU) today announced that it has agreed to purchase an additional 21.3% working interest in the Fort Hills Project and associated sales and logistics agreements from Teck Resources Limited, for consideration of $1 billion. Upon closing, Suncor's aggregate share in the project will increase to 75.4%. The acquisition will be funded by cash from asset sale processes currently underway and the company remains on track with its previously articulated capital allocation framework.</i><br />https://finance.yahoo.com/news/suncor-energy-acquire-additional-working-002000500.html<br />CPhttps://www.blogger.com/profile/12701174164478027499noreply@blogger.comtag:blogger.com,1999:blog-1527840491496268397.post-23870113913701054082022-08-06T16:08:37.550-07:002022-08-06T16:08:37.550-07:00For the year-to-date 2022, EBITDA of $9.1 billion ...For the year-to-date 2022, EBITDA of $9.1 billion less capex of $1.8 billion gives free cash flow of $7.3 billion, for an annualized FCF/EV yield of 27.5%.CPhttps://www.blogger.com/profile/12701174164478027499noreply@blogger.comtag:blogger.com,1999:blog-1527840491496268397.post-4242531768932918902022-08-06T16:05:13.528-07:002022-08-06T16:05:13.528-07:00The majority of Suncor’s revenues from the sale of...<i>The majority of Suncor’s revenues from the sale of oil and natural gas commodities are based on prices that are determined by or referenced to U.S. dollar benchmark prices, while the majority of Suncor’s expenditures are realized in Canadian dollars. In the second quarter of 2022, the Canadian dollar weakened in relation to the U.S. dollar as the average exchange rate decreased to US$0.78 per one Canadian dollar from US$0.81 per one Canadian dollar in the prior year quarter. This rate decrease had a positive impact on price realizations for the company during the second quarter of 2022 when compared to the prior year quarter.<br /><br />Suncor also has assets and liabilities, including approximately 60% of the company’s debt, that are denominated in U.S. dollars and translated to Suncor’s reporting currency (Canadian dollars) at each balance sheet date. A decrease in the value of the Canadian dollar, relative to the U.S. dollar, from the previous balance sheet date increases the amount of Canadian dollars required to settle U.S. dollar denominated obligations, while an increase in the value of the Canadian dollar, relative to the U.S. dollar, decreases the amount of Canadian dollars required to settle U.S. dollar denominated obligations.</i><br /><br />Ibid.CPhttps://www.blogger.com/profile/12701174164478027499noreply@blogger.comtag:blogger.com,1999:blog-1527840491496268397.post-53346806961540050042022-08-06T16:04:57.505-07:002022-08-06T16:04:57.505-07:00Suncor’s refining and marketing gross margins are ...<i>Suncor’s refining and marketing gross margins are primarily influenced by 2-1-1 benchmark crack spreads, which are industry indicators approximating the gross margin on a barrel of crude oil that is refined to produce gasoline and distillates. Market crack spreads are based on quoted near-month contracts for WTI and spot prices for gasoline and diesel and do not necessarily reflect the margins at a specific refinery. Suncor’s realized refining and marketing gross margins are influenced by actual crude oil feedstock costs, refinery configuration, product mix and realized market prices unique to Suncor’s refining and marketing business. In addition, the U.S. regulatory renewable blending obligations influence the benchmark cracks, which may increase their volatility, while the cost of regulatory compliance is not deducted in calculating the benchmark cracks.<br /><br />Suncor has developed an indicative 5-2-2-1 index based on publicly available pricing data to more accurately reflect Suncor’s realized refining and marketing gross margin. This internal index is a single value calculated based on a notional five barrels of crude oil of varying grades refined to produce two barrels each of gasoline and distillate and one barrel of secondary product to approximate Suncor’s unique set of refinery configurations; overall crude slate and product mix; and the benefit of its location, quality and grade differentials, and marketing margins. The internal index is calculated by taking the product value of refined products less the crude value of refinery feedstock excluding the impact of FIFO inventory accounting methodology. The product value incorporates the New York Harbor 2-1-1 crack, Chicago 2-1-1 crack, WTI benchmarks and seasonal factors. The seasonal factor applies an incremental US$6.50/bbl in the first and fourth quarters and US$5.00/bbl in the second and third quarters and reflects the location, quality and grade differentials for refined products sold in the company’s core markets during the winter and summer months, respectively. The crude value incorporates the SYN, WCS and WTI benchmarks.</i><br /><br />https://www.sec.gov/Archives/edgar/data/0000311337/000110465922086319/tm2218186d1_ex99-1.htmCPhttps://www.blogger.com/profile/12701174164478027499noreply@blogger.com