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The analysts told investors that execution is the key for the company, and they believe SU’s new senior management has the vision and strategy to improve execution, returns, CFFO, and FCF.
“Our revised estimates reflect our revised crude price deck along with slightly better crude price capture in 2024 and 2025. Higher downstream margin assumptions also contribute positively,” they explained.
“We now employ a peer comparable valuation multiple and historical averages, as we expect SU to begin to materially address and resolve the majority of its operational challenges.”
Wells Fargo also increased its 2023 production forecast for Suncor to 731mboed from 719mboed, which remains below the company’s guidance range of 740-770mboed. The forecast assumes slightly higher oil sands production and a minor contribution from Terra Nova in Q4.
