Re: Suncor Energy Inc(SU) vs Canadian Natural Resources(CNQ)
sold 90% of my SU and moved the proceeds into CNQ
CNQ has twice the market cap of SU. Both have similar operations
Canadian Natural Resources Ltd. is an oil and natural gas production company, which engages in the exploration, development, marketing, and production of crude oil and natural gas. It operates through the following segments: Oil Sands Mining & Upgrading, Midstream & Refining, and Exploration & Production. The Oil Sands Mining & Upgrading segment produces synthetic crude oil through bitumen mining and upgrading operations. The Midstream & Refining segment focuses on maintaining pipeline operations and investment. The Exploration & Production segment consists of operations in North America, largely in Western Canada, the United Kingdom portion of the North Sea, and Côte d’Ivoire and South Africa in Africa. The company was founded on November 7, 1973 and is headquartered in Calgary, Canada.
Canadian oil companies, lighter in debt, have cash to spare despite falling prices
After a bumper year of share buybacks and dividends, investors in debt-light Canadian oil and gas producers are set to reward shareholders even more in 2023 as they generate ample cash and show little appetite for acquisitions. CNQ mentioned in the article as one of the companies paying down debt and growing their dividend. Pretty much a lateral move out of SU and into CNQ and you get more of the mid stream & refining components.
I like the idea that management is paying down debt in this high interest rate environment w/ the goal to return that back to the shareholder,
FWIW, been in SU for years w/ different Buys some as high as $70 - $80 per share and got my avg cost down to the current level. Will see if CNQ can performed better. You are paying a slightly higher PE and get a slightly lower div than SU but s/d see debt go to zero (at least according to the article). |
