Tarsands Giants Reports, Buffett’s Favorite Western Report Is Pending

Canadian oil sands producer Suncor (SU) reported better first-quarter results on Monday night, boosted by a surge in oil prices after Russia invaded Ukraine. Suncor shares rebounded early Tuesday as oil inventories were broadly mixed as crude oil prices fell.


oil producer western oil (OXY) and Oil Carrier Teekay Tankers (TNK) reports first quarter results on Tuesday and Thursday, respectively.

At Warren Buffett’s Berkshire Hathaway (BRKB) has amassed a large stake in OXY shares over the past few months.

Suncor earnings, Suncor shares

Estimates: Wall Street expected Suncor to earn $1.27 per share, a jump of 218%, according to FactSet. Sales are expected to climb 31% to $9.184 billion.

Results: Suncor’s earnings per share soared 291% to $1.93, according to FactSet. The company increased its quarterly dividend by 12%, to 47 cents. The company said it reduced its long-term debt by $728 million during the quarter.

Suncor shares rose 1.4% to 35.30 in the stock market today. The stocks have a composite rating of 99. Their EPS rating is 74.

Among other oil stocks, Exxon (XOM) fell 7.9% to 84.46. The stock fell below a buy point of 89.90. Chevron (CVX) fell 6.7% to 159.25, slipping below its 50-day moving average. The shares were in a flat base with a buy point of 174.86. Buffett’s Berkshire has significantly increased its holdings of CVX stocks in recent months.

Russia’s invasion sent oil prices soaring as buyers turned away from the country’s supply and markets worried about shipping disruptions.

But crude oil prices and oil inventories were down on Monday, amid broader worries about the economy and the impact on oil demand from China’s coronavirus shutdowns, as well as a general sell-off. on the stock market. U.S. light crude oil futures fell 6.1% to $103.09 a barrel

Suncor, a major producer in Canada’s oil industry, uses extraction and heating technology to extract oil sands – and bitumen, the thick form of crude oil these sands contain – from the ground. Along with bitumen, oil sands contain sand, clay and water. After Suncor extracts the bitumen, its refineries process it into products like gasoline, asphalt and other materials.

Elliott buys shares of Suncor

Elliott Investment Management said last month it took a roughly 3.4% stake in Suncor. At that time, he also said he sent a letter to Suncor’s board saying the company had “seen a decline in the outstanding performance that was once its hallmark” which had led to “production targets missed, high costs and safety issues”. Elliott also argued that Suncor stock underperformed many of its rivals.

Elliott has asked Suncor to add five new independent directors with “deep expertise” in Canadian energy. And he called for a review of Suncor’s management team, as well as a review of ways to strengthen business outside of Suncor’s oil sands operations.

He also asked Suncor to increase the return on capital to more than 80% of discretionary cash flow, after capital expenditures and dividends. That would be up 50%.

Suncor, in a brief statement, said it “looks forward to engaging with Elliott in due course to better understand their perspective.”

Elliott said since 2014, 12 Suncor employees or contractors have died in accidents. He said that figure was higher than his direct peers combined. Regulators and activists have also looked at the environmental impact of Suncor’s operations.

Occidental Petroleum Profits

Estimates: Wall Street expects Occidental to earn $1.97 per share, well up from a loss a year ago. Revenue was expected to jump 47% to $7.782 billion.

Results: Due Tuesday after closing.

OXY stock slid 10.9% to 57.84 on Monday. The stock falls back towards its rising 50-day line.

Like other oil stocks, its IBD ratings are strong. The stocks have a composite rating of 99. Their EPS rating was 74.

Occidental is the largest area holder in the Permian Basin, located in Texas and New Mexico. It is also present in the Gulf of Mexico, in Colorado and abroad, in Oman, Algeria and the United Arab Emirates.

Occidental shareholders on Friday voted against a proposal by investor group Follow This asking the oil company to set carbon emission reduction targets, according to Bloomberg. Occidental said the same day that its board had declared a regular quarterly dividend of 13 cents per share.

Berkshire has become Occidental’s largest shareholder, with Warren Buffett filling out the stock earlier this year. Berkshire owns 15.2% of OXY shares, according to FactSet data.

Earnings from Teekay Tankers

Estimates: Wall Street expects Teekay to post a loss of 76 cents per share, smaller than a year ago. Sales estimates were not available.

Results: To be submitted before the opening on Thursday.

Shares fell 12.5% ​​to 14.38 on Monday, undercutting the 50-day line.

Teekay operates tankers that transport crude oil. The stock’s composite rating is 88. Its EPS rating is 27.


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