The Successful Investor Hotline – Friday, February 4, 2011

Article Excerpt

SUNCOR ENERGY INC., $40.61, Toronto symbol SU, reported better-than-expected earnings this week. As well, the turmoil in Egypt has pushed up oil prices, and helped lift Suncor’s share price. In 2010, Suncor’s earnings jumped 113.4%, to $2.7 billion from $1.3 billion in 2009. Earnings per share rose 64.6%, to $1.74 from $1.06, on more shares outstanding. These figures exclude several unusual items, including gains on sales of assets Suncor received as a part of its 2009 takeover of Petro-Canada. On this basis, the 2010 earnings easily beat the consensus estimate of $1.57 a share. Cash flow per share rose 82.1% in 2010, to $4.26 from $2.34. Revenue gained 38.2%, to $34.4 billion from $24.8 billion. Suncor produced an average of 615,100 barrels of oil equivalent (including natural gas) per day in 2010. That’s up 34.9% from 456,000 barrels in 2009. Higher production of natural gas and conventional oil offset slower growth at its oil-sands properties, which accounted for 52% of Suncor’s…