Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Suncor's Ahead of the Curve

Just months after my full-year review, oil sands sultan Suncor (NYSE: SU  ) received board approval for a huge $20.6 billion expansion project. Sounds scary, but this isn't the first time the company has embarked on a capital program in the vicinity of half the company's market cap. This company just continues to stay ahead of the curve, in more ways than one.

First, Suncor was early to recognize the economic potential of Canada's oil sands. I personally recall viewing this company as something of a pipe dream not so many years ago. That was back when Canadian Natural Resources' (NYSE: CNQ  ) Horizon project was still far off, and BP (NYSE: BP  ) wasn't yet party to a poetic partnership of its own.

As a result of this prescience, Suncor's financial results are simply smashing. This quarter, oil sands-based operating cash flow flew over 50%, and net income lifted 23%, despite several billion dollars of expenditures on the new expansion. As a past expansion phase comes to a conclusion, the company is targeting oil sands production of around 280,000 barrels per day.

Another way in which Suncor is ahead of the curve has to do with the company's approach to sustainability. This company has had a climate change plan for more than 10 years -- way before Al Gore was winning Nobel prizes. Greenhouse gas emissions are half their 1990 levels, while water use has dried up 40% in the past five years. These are the sort of forward-looking actions that will give Suncor the social license to keep pumping out profits "not just for the next five years, or even 50 years, but for a century and beyond." Take note, Huaneng Power (NYSE: HNP  ) -- that's real social responsibility.

Read/Post Comments (0) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 630666, ~/Articles/ArticleHandler.aspx, 10/25/2016 8:34:20 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 11 hours ago Sponsored by:
DOW 18,223.03 77.32 0.43%
S&P 500 2,151.33 10.17 0.47%
NASD 5,309.83 52.43 1.00%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/24/2016 4:03 PM
SU $29.40 Down -0.02 -0.07%
Suncor Energy CAPS Rating: ***
BP $35.87 Down -0.38 -1.05%
BP CAPS Rating: ****
CNQ $33.07 Down -0.07 -0.21%
Canadian Natural R… CAPS Rating: ***
HNP $24.58 Down -0.20 -0.81%
Huaneng Power CAPS Rating: **