Suncor Energy Inc. SU suffered a massive setback recently as two workers of Clearstream Mining died at its Fort Hills oil sands mine.
The fatal incident occurred when a bulldozer knocked a light vehicle truck, killing two miners eventually. Notably, the truck provides mining services at Fort Hills. Both the deceased were inside the pickup truck at the time of the collision. The company halted the operations at the site for an indefinite period as the probe into their deaths is ongoing.
The Fort Hills open-pit mine plan, which is one of the largest in the Wood Buffalo region in Alberta,has two main pits and a mine fleetwith a capacity to produce up to 14,500 tonnes of oil sand per hour.
Fort Hills has three joint owners under the Fort Hills Energy LP consortium, comprising three co-owners, namely Suncor Energy with 54.11% interest, TOTALSE TOT with 24.58% stake and Teck Resources Ltd. TECK holding 21.31% interest.
Last month, Suncor Energy released its capital budget and production guidance for 2021 and expects its output to increase next year as it presumes commodity prices and demand to improve from the pandemic slumps.
The company’s production from its stake in Fort Hills is projected in the range of 65,000-85,000 BPD, indicating a 20% rise from the midpoint of the 2020 guided range. Meanwhile, Fort Hills’ cash operating costs are estimated in the $25-$29 per barrel band, nearly 20% below the midpoint of the 2020 outlook.
Company Profile
Founded in 1917, Suncor Energy is Canada’s premier integrated energy company. Its operations include oil sands development and upgrade; conventional and offshore crude oil and gas production; petroleum refining and product marketing. The company is one of the largest owners of oil sands in the world.
Zacks Rank & Key Pick
Suncor Energy currently carries a Zacks Rank #3 (Hold). A better-ranked player in the energy space is DCP Midstream Partners, LP DCP, presently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Legal Marijuana: An Investor’s Dream
Imagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027.
Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.
Download Marijuana Moneymakers FREE >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
TOTAL SE (TOT): Free Stock Analysis Report
Suncor Energy Inc. (SU): Free Stock Analysis Report
Teck Resources Ltd (TECK): Free Stock Analysis Report
DCP Midstream Partners, LP (DCP): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
