Investors profit from their strong cash flow

Article Excerpt

The benchmark crude oil price has jumped roughly 31% in the past year, from $75 U.S. a barrel to $98 U.S. That’s due to several factors, including COVID-19 lockdowns in China and sanctions on oil exports from Russia because of its war on Ukraine. At the same time, these four leading oil and gas producers are pointing to increasingly stringent environmental regulations as a challenge to expanding their production. That lower capital spending on drilling is letting them return more of their cash flow to investors. Even if crude prices drop back to $75 U.S., improving efficiency at these companies should help them maintain their current dividends. SUNCOR ENERGY INC. $42 is a buy. The company (Toronto symbol SU; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.4 billion; Market cap: $58.8 billion; Price-to-sales ratio: 1.4; Dividend yield: 4.5%; TSINetwork Rating: Average; www.suncor.com) is Canada’s largest integrated oil firm, with major projects in the Alberta oil sands. It also operates four refineries (three in Canada and…