The Successful Investor Hotline – Friday, November 1, 2013

Article Excerpt

SUNCOR ENERGY INC., $36.80, Toronto symbol SU, announced this week that it will develop its Fort Hill oil sands property north of Fort McMurray, Alberta. Suncor owns 40.8% of Fort Hills, and will operate the project. Total S.A. of France owns 39.2%, while Teck Resources (see below) holds the remaining 20.0%. Fort Hills’ reserves should last 50 years. The company will contribute $5.5 billion to Fort Hills’ $13.5-billion cost. The project should begin operating in the fourth quarter of 2017. It should ultimately produce 180,000 barrels a day; Suncor’s share is 73,440 barrels. To put that in context, Suncor’s average daily production in the third quarter of 2013 rose 11.2%, to 595,000 barrels of oil equivalent from 535,300 barrels a year earlier. Thanks to the higher production and rising oil prices, Suncor earned $1.4 billion in the three months ended September 30, 2013, up 10.4% from $1.3 billion a year earlier. Earnings per share rose 13.1%, to $0.95 from $0.84, on fewer…