Scotiabank Adjusts Suncor Energy (SU) Price Target Upward, Maintains Sector Perform

On April 21, Scotiabank raised its terms proposal connected Suncor Energy Inc. (NYSE:SU) to C$90 from C$85. It reiterated a Sector Perform standing connected the shares.

On April 14, JPMorgan raised its terms extremity connected SU to C$105 from C$79 and kept an Overweight standing arsenic portion of a Q1 preview. The steadfast pointed to higher commodity prices arsenic the main crushed down the increase. The expert expects Suncor to present different beardown quarter, with coagulated execution crossed some upstream and downstream operations.

Last month, Reuters reported that Suncor Energy expects astir of its bitumen accumulation by 2040 to travel from steam-assisted extraction. This marks a structural displacement for the company. It besides signals a determination toward little costs and higher semipermanent currency flow. At present, astir 70% of Suncor’s lipid sands crude comes from large-scale mining operations successful bluish Alberta. These operations trust connected trucks and shovels to extract bitumen that sits adjacent to the surface.

The remaining 30% is produced from deeper deposits utilizing steam-based methods. This process, known arsenic successful situ, helps loosen the lipid underground truthful it tin beryllium pumped to the surface. Over the adjacent 15 years, that premix is expected to change. By 2040, astir 60% of accumulation volition travel from successful situ projects, portion mining volition relationship for 40%, according to CEO Rich Kruger astatine an capitalist time presentation. The displacement reflects declining output from the Base Plant mine, which is expected to beryllium mostly depleted by the mid-2030s. It besides aligns with the company’s absorption connected lowering accumulation costs.

Suncor Energy Inc. (NYSE:SU) is simply a Canada-based integrated vigor company. Its operations are organized into Oil Sands, Exploration and Production (E&P), and Refining and Marketing segments.

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