- Embraces Industry 5.0 with open, agile and resilient industrial processes integrating automation, energy management and digital technologies - Demonstrates an integrated approach showcasing how its solutions are shaping industry by connecting ecosystems- Enables manufacturers to be more competitive with AI-infused solutions for enhanced efficiency and innovation Hannover, Germany, March 31, 2025 (GLOBE NEWSWIRE) -- Schneider Electric, a leader in energy management and automation, will showcase its advance ...

Group 1: Company Overview - Suncor Energy is a major player in the Oil & Gas industry, based in Alberta, and is one of Canada's largest oil producers [1] - The company is known for its operations in the Athabasca oil sands, which is among the largest oil reserves globally [1] Group 2: Investment Focus - The analysis emphasizes a focus on undervalued and disliked companies or industries with strong fundamentals and good cash flows [1] - There is a particular interest in sectors such as Oil & Gas and consumer goods, especially those that have been overlooked for unjustified reasons [1] Group 3: Investment Strategy - The investment strategy leans towards long-term value investing, while also considering potential deal arbitrage opportunities [1] - The analysis expresses a preference for businesses that are easily understandable, avoiding high-tech and certain consumer goods sectors [1]

Core Insights - Schneider Electric and ETAP have launched a digital twin technology that simulates the power requirements of AI factories, enhancing energy efficiency and predictive maintenance [1][4][5] - The collaboration integrates ETAP's electrical digital twin technology with NVIDIA Omniverse™ Cloud APIs, allowing for comprehensive modeling of electrical systems [2][3] - This innovation addresses the increasing power consumption driven by AI workloads, necessitating a rethinking of data center design and management [2][3] Group 1: Technology and Innovation - The digital twin provides advanced insights into electrical systems, enabling operators to optimize energy efficiency and reduce total cost of ownership [1][13] - ETAP's modeling technology creates a virtual replica of electrical infrastructure, combining real-time data and advanced analytics for improved power management [2][3] - The "Grid to Chip" approach enhances precision in modeling dynamic load behavior, crucial for optimizing energy efficiency in data centers [3] Group 2: Industry Impact - The collaboration aims to transform data center operations, improving grid reliability and performance while addressing the challenges of AI workloads [4][5] - As AI adoption accelerates, the need for efficient power management becomes critical for startups, enterprises, and data center operators [2][5] - The partnership signifies a shift in how data centers can be designed and managed, integrating electrical engineering with advanced virtualization and AI technologies [5]

Group 1 - Clearway Energy (CWENA) is currently outperforming its Oils-Energy peers with a year-to-date return of 12.7%, while the average return for the sector is -1.9% [4] - The Zacks Rank for Clearway Energy is 2 (Buy), indicating a positive outlook based on earnings estimates and revisions [3] - The consensus estimate for CWENA's full-year earnings has increased by 1.4% over the past three months, reflecting stronger analyst sentiment [3] Group 2 - Clearway Energy is part of the Alternative Energy - Other industry, which consists of 47 stocks and currently holds a Zacks Industry Rank of 56 [5] - The average return for stocks in the Alternative Energy - Other industry is -2.2% year-to-date, further highlighting Clearway Energy's strong performance [5] - In contrast, Suncor Energy, another stock in the Oils-Energy sector, has a year-to-date return of 0.4% and also holds a Zacks Rank of 2 (Buy) [4][6]

Core Viewpoint - Suncor Energy's recent earnings report shows a mixed performance with strong production growth in the upstream segment but challenges in the downstream segment and overall revenue decline due to lower commodity prices [2][3][5]. Financial Performance - Adjusted operating earnings for Q4 2024 were 89 Canadian cents per share, exceeding the Zacks Consensus Estimate of 82 Canadian cents, but down from 93 Canadian cents in the same quarter last year [2]. - Operating revenues reached $8.9 billion, surpassing estimates by 4.3%, but decreased approximately 14% year over year due to lower commodity prices [3]. - Total expenses increased by 6.2% to C$11.4 billion compared to the prior-year quarter [17]. Shareholder Returns - The company distributed a total of C$1.7 billion to shareholders in Q4 2024, including C$1 billion in share repurchases and C$700 million in dividends [4]. - A quarterly dividend of 57 Canadian cents per share was declared, unchanged from the previous quarter [3]. Production and Operational Highlights - Upstream production reached a record 875,000 barrels per day (bbls/d), a 20% increase year over year, and exceeded the consensus estimate of 846,000 bbl/d [7]. - Oil sands bitumen production hit a record of 951,500 bbls/d, up from 866,200 bbls/d in the previous year [7]. - Refining throughput was near-record at 486,200 bbls/d, with refinery utilization at 104% [5][16]. Cost Management - Operating cost per barrel decreased to C$26.55 from C$30.80 in the corresponding period of 2023, attributed to higher production and lower commodity costs [9][12]. - Cash operating costs for Oil Sands operations are expected to range from C$26 to C$29 per barrel for 2025 [21]. Future Guidance - For 2025, Suncor Energy expects upstream production to range from 810,000 to 840,000 barrels of oil equivalent per day (boe/d) [19]. - Total capital expenditures for 2025 are projected to be between C$6.1 billion and C$6.3 billion [22]. Market Sentiment - There has been an upward trend in estimates revision, with the consensus estimate shifting by 21.95% [23]. - The stock has a Zacks Rank 2 (Buy), indicating expectations for above-average returns in the coming months [25].

Financial Performance - Suncor generated adjusted funds from operations of $13.846 billion in 2024, or $10.87 per common share, compared to $13.325 billion, or $10.19 per common share, in the prior year [75]. - Net earnings for 2024 were $6.016 billion, or $4.72 per common share, down from $8.295 billion, or $6.34 per common share in 2023 [76]. - The company reported a cash flow from operating activities of $15.960 billion in 2024, compared to $12.344 billion in 2023 [76]. - Adjusted operating earnings increased to $6.884 billion in 2024, compared to $6.677 billion in 2023, reflecting a growth of 3.1% [93]. - Corporate loss before income taxes was $(1,883) million in 2024, compared to $(1,296) million in 2023, influenced by unrealized foreign exchange losses and asset impairments [188]. - Adjusted funds from operations were $3.493 billion ($2.78 per common share) in Q4 2024, down from $4.034 billion ($3.12 per common share) in Q4 2023 [199]. - Net earnings for Q4 2024 were $818 million, significantly lower than $2.820 billion in Q4 2023, influenced by lower refined product realizations and increased royalties [198]. - The effective tax rate increased to 26.5% in 2024 from 21.7% in 2023, influenced by non-taxable gains and foreign exchange losses [195]. Production and Sales - Total Oil Sands production volumes increased to 773.8 mbbls/d in 2024, up from 689.6 mbbls/d in 2023, representing a 12.6% increase [67]. - Suncor achieved record upstream production of 827,600 bbls/d in 2024, up from 745,700 bbls/d in 2023, representing an increase of approximately 11.5% [84]. - Total Oil Sands bitumen production increased to 907,000 bbls/d in 2024, up from 819,800 bbls/d in 2023, primarily due to increased working interest in Fort Hills and strong mining performance [132]. - Total refined product sales reached a record of 600,400 bbls/d in 2024, up from 553,100 bbls/d in 2023, driven by higher refinery throughput [182]. - Total production averaged 53,800 mboe/d in 2024, a decrease from 56,100 mboe/d in 2023, with E&P Canada production increasing to 49,700 bbls/d [165]. Capital Expenditures and Investments - Capital expenditures for 2024 were $6.166 billion, an increase from $5.573 billion in 2023 [64]. - The company plans to allocate $6.1 billion to $6.3 billion for capital spending in 2025 [251]. - Economic investment expenditures in Oil Sands Base were $1.852 billion in 2024, focusing on the Upgrader 1 coke drum replacement and a new cogeneration facility [227]. - Refining and Marketing capital expenditures were $1.186 billion in 2024, primarily for asset sustainment and maintenance activities [233]. - Exploration and Production capital expenditures were $862 million in 2024, mainly for the West White Rose Project and SeaRose Asset Life Extension Project [232]. Debt and Financial Position - Suncor's net debt decreased to $6.861 billion in 2024 from $9.852 billion in 2023, reflecting improved financial condition [64]. - Total debt to total debt plus shareholders' equity decreased to 18.9% in 2024 from 21.1% in 2023 [243]. - The company reported a net debt to adjusted funds from operations ratio of 0.5 times in 2024, down from 0.7 times in 2023 [243]. - Cash and cash equivalents at the end of 2024 were $3.484 billion, compared to $1.729 billion at the end of 2023 [243]. - Available credit facilities increased to $5.475 billion at the end of 2024, up from $4.957 billion at the end of 2023 [255]. Operational Efficiency - The company achieved a refining and marketing gross margin of $36.40 per barrel in 2024, down from $45.00 per barrel in 2023 [67]. - Suncor's upgrader utilization reached 98% in 2024, up from 92% in 2023, indicating improved operational efficiency [84]. - Oil Sands operations cash operating costs per barrel decreased to $26.90 in 2024 from $29.70 in 2023, due to increased production and cost optimizations [148]. - Fort Hills cash operating costs per barrel decreased to $32.80 in 2024 from $34.40 in 2023, primarily due to increased production volumes [149]. - Syncrude cash operating costs per barrel decreased to $35.15 in 2024 from $37.15 in 2023, driven by increased production and workforce optimizations [150]. Market Conditions - The average price realization for upgraded net SCO and diesel was $97.91 per barrel in 2024, slightly down from $99.40 per barrel in 2023 [67]. - The average WTI crude oil price was $75.70/bbl in 2024, down from $77.60/bbl in 2023, reflecting a decrease of 2.9% [101]. - The average AECO natural gas benchmark price decreased to $1.35/GJ in 2024 from $2.50/GJ in 2023 [110]. - The Alberta power pool price averaged $62.80/MWh in 2024, down from $133.65/MWh in the previous year [111]. - The average WTI crude oil price in Q4 2024 was $70.30 per barrel, down from $78.35 per barrel in Q4 2023, indicating a decrease of approximately 10.5% [219].

Core Viewpoint - Suncor Energy has filed its 2024 Annual Report and renewed its Normal Course Issuer Bid (NCIB) to repurchase up to 123.8 million common shares, representing approximately 10% of its public float, indicating a strategic move to enhance shareholder value [1][3][4]. Group 1: Annual Disclosure Documents - Suncor Energy has filed its 2024 Annual Report, Annual Information Form, and Management Proxy Circular [1]. - The annual disclosure documents can be accessed on Suncor's profile on sedarplus.com, sec.gov, or the company's website [2]. Group 2: Normal Course Issuer Bid (NCIB) - The TSX has accepted Suncor's notice to renew its NCIB, allowing the company to purchase up to 123,800,000 common shares from March 3, 2025, to March 2, 2026 [3]. - As of February 18, 2025, Suncor had 1,238,456,851 common shares issued and outstanding, with the NCIB representing about 10% of the public float [3][4]. - Under the previous NCIB, Suncor repurchased 61,065,792 shares for approximately $3.258 billion at a weighted average price of $53.35 per share [5]. Group 3: Share Repurchase Strategy - Suncor believes that repurchasing its own shares is an attractive investment opportunity and aligns with the best interests of the company and its shareholders [4][9]. - The company plans to limit daily purchases under the NCIB to no more than 25% of the average daily trading volume, which is approximately 2,017,894 common shares [6]. - An automatic share purchase plan is expected to be implemented in relation to the NCIB starting March 3, 2025 [6]. Group 4: Company Overview - Suncor Energy is Canada's leading integrated energy company, involved in oil sands development, offshore oil production, and petroleum refining, as well as retail and wholesale distribution networks [12]. - The company is also focused on transitioning to a lower-emissions future through investments in lower emissions intensity power and renewable feedstock fuels [12].

Group 1 - The Cash Flow Kingdom Income Portfolio aims to achieve an overall yield in the range of 7% - 10% by combining various income streams for a steady payout [1] - Suncor Energy Inc. is highlighted as a high-quality oil sands company that has recently demonstrated strong results and plans to increase shareholder returns as it has reduced its net debt [1] - The portfolio includes features such as access to a leader's personal income portfolio targeting a yield of over 6%, community chat, and coverage of various sectors including energy midstream and commercial mREITs [1] Group 2 - Jonathan Weber, an analyst with an engineering background, has been active in the stock market and focuses primarily on value and income stocks while occasionally covering growth stocks [2]

Core Viewpoint - Suncor Energy has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, indicating a positive outlook for the company's stock price [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in a company's earnings picture, which significantly influences near-term stock price movements [2][4]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in buying or selling actions that affect stock prices [4]. Company Performance and Analyst Sentiment - The recent upgrade reflects an improvement in Suncor Energy's underlying business, suggesting that investors may respond positively by driving the stock price higher [5]. - Over the past three months, the Zacks Consensus Estimate for Suncor Energy has increased by 18.1%, although the expected earnings per share for the fiscal year ending December 2025 is projected to be $3.42, representing a year-over-year decline of 13.2% [8]. Zacks Rank System Overview - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have generated an average annual return of +25% since 1988 [7]. - The upgrade to Zacks Rank 2 places Suncor Energy in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].

SUNCOR ENERGY Investor Information Q4 2024 Published February 5, 2025 SUNCOR ENERGY Suncor's value proposition Long-life, competitively advantaged assets Regional and vertical integration Operational reliability Disciplined investment & cost management Deliver superior long-term shareholder value SUNCOR ENERGY 2 Suncor key statistics | Market capitalization YE 2024 | $64B | | --- | --- | | Net debt to AFFO 2024 | 0.5x | | Oil sands reserve life index | 2023 26 yrs | | Upgrading capacity | 556 kbpd | | Refin ...