Barclays Maintains an 'Overweight' on Suncor Energy (SU); UPDATE: 2012 Budget and Guidance
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Price: $39.27 +0.31%
Rating Summary:
15 Buy, 7 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 3 | Down: 3 | New: 2
Rating Summary:
15 Buy, 7 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 3 | Down: 3 | New: 2
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Barclays maintains an 'Overweight' on Suncor Energy (NYSE: SU) price target of CAD48.00.
Barclays analyst says, "Suncor (SU) released its 2012 budget and production guidance (11/08). We think the announcement will have a neutral to negative impact on the shares' near-term performance. Although the 2012 budget of C$7.5 billion is in line with the estimate that management provided in their 3Q11 conference call and thus represents no surprise, we believe the company's production guidance of 530-580 mboe/d (000s boe/d) is likely lower than the market's expectation. Versus our estimate, the production shortfall is primarily related to their East Coast Canada and international operation. We apparently have under-estimated the impact of the turnaround activities at Terra Nova and White Rose as well as over-estimated the production run rate at the Buzzard field in 2012. On a brighter note, because neither management guidance nor our estimate included any oil production from Libya, we think that actual production will likely exceed the guidance and our revised estimate since we think some production will resume in 2012."
"We reduce our 4Q11, 2011 and 2012 EPS estimates to C$0.98, C$3.65 and C$3.45, respectively, from C$1.03, C$3.70 and C$3.75."
For an analyst ratings summary and ratings history on Suncor Energy click here. For more ratings news on Suncor Energy click here.
Shares of Suncor Energy closed at $30.80 yesterday.
Barclays analyst says, "Suncor (SU) released its 2012 budget and production guidance (11/08). We think the announcement will have a neutral to negative impact on the shares' near-term performance. Although the 2012 budget of C$7.5 billion is in line with the estimate that management provided in their 3Q11 conference call and thus represents no surprise, we believe the company's production guidance of 530-580 mboe/d (000s boe/d) is likely lower than the market's expectation. Versus our estimate, the production shortfall is primarily related to their East Coast Canada and international operation. We apparently have under-estimated the impact of the turnaround activities at Terra Nova and White Rose as well as over-estimated the production run rate at the Buzzard field in 2012. On a brighter note, because neither management guidance nor our estimate included any oil production from Libya, we think that actual production will likely exceed the guidance and our revised estimate since we think some production will resume in 2012."
"We reduce our 4Q11, 2011 and 2012 EPS estimates to C$0.98, C$3.65 and C$3.45, respectively, from C$1.03, C$3.70 and C$3.75."
For an analyst ratings summary and ratings history on Suncor Energy click here. For more ratings news on Suncor Energy click here.
Shares of Suncor Energy closed at $30.80 yesterday.
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