Suncor Energy, Inc. - SU STOCK NEWS

Elliott Investment Management, holding a 3.4% stake in Suncor Energy (NYSE:SU), has proposed significant changes to enhance corporate governance and operational efficiency. The firm believes these changes could create over $30 billion in shareholder value, potentially increasing share prices by 50% or more. Key recommendations include appointing five independent directors, reviewing management, improving operational safety, and increasing capital returns. Elliott emphasizes that Suncor's recent performance has lagged behind peers due to safety incidents and missed production targets.

Evok Innovations has successfully closed its first $300 million for Fund II, attracting new limited partners including Export Development Canada, Royal Bank of Canada, and The Toronto-Dominion Bank. The fund, targeting early-stage investments in industrial decarbonization, adds to Suncor Energy and Cenovus Energy as returning investors. Evok's inaugural fund has made 16 investments promoting clean technology solutions. Notable portfolio companies like Twelve and Quidnet Energy have secured significant commercial contracts, reflecting strong market demand for decarbonization technologies.

Suncor announced its 2022 corporate guidance, highlighting strong operational performance and capital discipline. Key points include:

• Projected upstream production of 750,000 to 790,000 boe/d, a 5% increase from 2021.
• Record Synthetic Crude Oil production, also up by 5%.
• Refinery throughput expected to match 2019 levels, targeting record sales.
• 2022 capital program reduced by $300 million to $4.7 billion, primarily for sustaining capital.

This guidance supports increased shareholder returns, including doubled dividends and enhanced share buybacks.

Suncor reported a strong third quarter in 2021, generating funds from operations of $2.641 billion ($1.79 per share), up from $1.166 billion in the prior year. The company returned $1.0 billion to shareholders through share repurchases and dividends, while reducing net debt by $2.0 billion this quarter, totaling $3.1 billion for the year. Operating earnings reached $1.043 billion ($0.71 per share), compared to a loss of $338 million last year. Suncor also assumed operatorship of the Syncrude asset, projecting annual gross synergies of $100 million in the first six months.

Suncor Energy has announced a 100% increase in its quarterly dividend, reinstating it to $0.42 per share, effective December 24, 2021. This decision reflects strong company performance and confidence in strategic execution. The Board has also expanded its normal course issuer bid (NCIB) to purchase up to 107 million shares. As of September 30, 2021, the company has reduced net debt by $3.1 billion in 2021, targeting a year-end balance near $15 billion. Additionally, Suncor aims to achieve $2 billion in incremental free funds flow by 2025, with $465 million expected in 2021.

Suncor is set to release its third quarter financial results on October 27, 2021, before 8:00 p.m. MT (10:00 p.m. ET). A webcast to discuss these results will occur on October 28 at 7:30 a.m. MT (9:30 a.m. ET), featuring CEO Mark Little and CFO Alister Cowan. Analysts will have the opportunity to participate in a Q&A session following management's remarks. Suncor, listed under the symbol SU on the Toronto and New York stock exchanges, is a leading Canadian energy company engaged in oil sands development, petroleum refining, and renewable energy initiatives.

Suncor has officially taken over the operatorship of the Syncrude Joint Venture, a significant move aimed at enhancing operational efficiencies and competitiveness in the Regional Municipality of Wood Buffalo. This change, supported by Syncrude's joint venture owners, reflects Suncor's confidence and is part of a strategic plan initiated to boost performance. Suncor's ownership in Syncrude has risen from 12% to 58.74% since acquiring Canadian Oil Sands in 2016, allowing it to better leverage combined assets for value creation.

Suncor Energy has signed agreements with eight Indigenous communities to acquire a 15% stake in the Northern Courier Pipeline from TC Energy for approximately $1.3 billion. This partnership will provide a stable revenue stream, generating about $16 million annually, enhancing economic reconciliation and supporting community initiatives. The deal, expected to close in Q4 2021, follows Suncor’s rights acquisition in 2019 and aims to foster lasting relationships with Indigenous Peoples in the Regional Municipality of Wood Buffalo.

Suncor announced a conditional agreement to increase its interest in the White Rose asset, pending a restart decision for the West White Rose project. The operator, Cenovus, is set to evaluate the restart by mid-2022. If the project proves economically viable, Suncor will boost its stake from 27.5% to 40% for a cash payment while assuming capital commitments for the additional interest only moving forward. No significant spending is anticipated before 2023, with both companies aiming to enhance asset efficiency.