Why Canada's Suncor Energy Can Overcome Falling Oil Prices, Keystone Snarls

This article was first published by TheStreet on December 01. 2014

By Sarfaraz A. Khan

NEW YORK (TheStreet) -- Despite facing declining crude-oil prices and restrictions to markets, Suncor Energy (SU)  is in a better position than other Canadian energy producers, because it can generate more cash than its competitors and use its financial strength to gain access to networks to transport oil out of Alberta.

Suncor will seek to move ahead with major projects, even if Brent prices hover between $80 and $85 a barrel, as it expects "to generate free cash flow", company spokeswoman Erin Ross said in an email to TheStreet, quoting the CEO Steve Williams' comments.

Nick Lupick, an analyst at AltaCorp Capital, forecast in a Nov. 19 report that Suncor will be able to generate positive free cash flow of about $2.48 billion, before dividends and buybacks, He wrote that the figure is the highest in Suncor's peer group, which includes Imperial Oil (IMO) ,Canadian Natural Resources (CNQ) and Cenovus Energy (CVE) .

This Canadian Energy Play Is Eyeing a Turnaround

From The Motley Fool

Penn West Petroleum (NYSE: PWE) is one of the largest oil and gas exploration and production companies in Canada, and the stock is poised for significant growth in the near term. Although this year its shares have trailed slightly behind the S&P 500, in 2012 the stock was a disaster, showing a drop of more than 45% in the 12 months ending December, which mirrored the company’s unimpressive performance. In fact, in 2012 Penn West was the third among the three worst-performing Canadian energy producers. However, Penn West has gone through a significant overhaul and is now eyeing a turnaround.