Canada's largest energy firm, Suncor Energy Inc.SU , has provided its production outlook and capital expenditure guidance for 2016. The company expects capital spending between C$6.7 billion and C$7.3 billion and average production in the range of 525,000-565,000 barrels of oil equivalent per day (boed).
Capital Expenditure
Suncor Energy expects 2016 capital spending in the range of C$6.7 billion to C$7.3 billion. Of this, the company will use C$5.85-C$6.3 billion for the upstream segment, C$800-C$900 million for the downstream segment and the remaining for corporate spending.
About 55% of next year's capital spending has been allocated for growth projects, mostly in the upstream segment. The remaining 45% will be used toward capital investments for achieving safe and reliable operations and improving efficiency.
Suncor further mentioned that next year's budget will have the flexibility to be scaled back in response to any further deterioration in market conditions.
Production Outlook
The company anticipates average per day production of 525,000-565,000 barrels of oil equivalent.
Of this, 400-425 thousand barrels per day (bbl/d) are expected to be contributed by the Oil Sands segment. About 30-35 thousand bbl/d will likely be derived from the Syncrude segment, while the remaining will come from the company's exploration and production activities.
Suncor Energy expects 2016 production from the Oil Sands to be slightly less than this year due to planned maintenance activities across its various facilities.
Refinery throughput is expected between 420,000-440,000 bbl/d, while utilization is anticipated to range between 91% and 95%.
Sales Guidance
Total Oil Sands Sales is expected in the range of 390-435 thousand bbl/d. Refined Product Sales is expected to be 510-550 thousand bbl/d.
Zacks Rank and Other Stocks
Currently, Suncor Energy carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the energy space are Energy Transfer Equity, L.P. ETE , Northern Tier Energy LP NTI and Boardwalk Pipeline Partners, LP BWP . All these stocks sport a Zacks Rank #1 (Strong Buy).
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
