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Suncor Energy (SU) Provides 2017 Capex, Production Outlook

Zacks

Canada’s largest energy firm, Suncor Energy Inc. SU recently provided the production outlook and capital expenditure guidance for 2017. The company expects capital spending between C$4.8 billion and C$5.2 billion and average production in the range of 680,000–720,000 barrels of oil equivalent per day (boed). This means that the company expects production to rise by more than 13% next year and spending to fall by more than C$1 billion.

Capital Expenditure

Suncor Energy expects 2017 capital spending between C$4.8 billion and C$5.2 billion. Of this, the company will use C$4.1–C$4.5 billion for the upstream segment, C$625–C$675 million for the downstream segment and the remaining for corporate purposes.

About 40% of next year’s capital spending has been allocated for growth projects, mostly in the upstream segment. The remaining 60% will be used toward capital investments for safe and reliable operations as well as improving efficiency.

Production Outlook

The company anticipates average per day production of 680,000–720,000 barrels of oil equivalent.

Of this, 420–450 thousand barrels per day (bbl/d) are expected to be contributed by the Oil Sands segment. About 150–165 thousand bbl/d will likely be derived from the Syncrude segment, while the remaining will come from the company’s exploration and production activities.


SUNCOR ENERGY Price

Refinery throughput is expected between 425,000–445,000 bbl/d, while utilization is anticipated to range between 92% and 96%.

Sales Guidance

Total Oil Sands sales are expected in the range of 415–455 thousand bbl/d. Refined Product sales are expected to be 515–545 thousand bbl/d.

Zacks Rank and Other Stocks

Currently, Suncor Energy sports a Zacks Rank #1 (Strong Buy).

Other well-ranked players from the broader energy sector include Braskem S.A. BAK, Ultra Petroleum Corp. UPLMQ and McDermott International Inc. MDR. All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

In the last four quarters, Braskem posted an average positive earnings surprise of 105.5%.

Ultra Petroleum, on the other hand, posted an average positive earnings surprise of 65.91% in the last four quarters.

In the last four quarters, McDermott posted an average positive earnings surprise of 250.00%.

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