New pipelines a plus for these oil producers

Article Excerpt

Ottawa recently approved a plan to double capacity on the Trans Mountain pipeline, which pumps crude oil from Alberta to Vancouver. As well, U.S. President Donald Trump has signed an executive order giving conditional approval to TransCanada’s proposed Keystone XL pipeline. This project would transport crude from Alberta’s oil sands to refineries on the U.S. Gulf Coast. These new and enhanced lines should help Suncor and Imperial Oil lift the earnings for their large oil sands projects. Meanwhile, both firms will continue to benefit from ongoing cost controls. SUNCOR ENERGY INC. $41 (Toronto symbol SU; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.7 billion; Market cap: $69.7 billion; Price-to-sales ratio: 2.6; Dividend yield: 3.1%; TSINetwork Rating: Average; www. suncor.com) is Canada’s largest integrated oil company, with major oil sands projects in Alberta. It also owns four oil refineries (three in Canada and one in Colorado) and 1,500 Petro-Canada gas stations. In March 2016, the company completed its all-stock acquisition of Canadian Oil…