Here's Why the Best Is Yet to Come for Suncor Energy
This year is a pivotal one for Suncor Energy (NYSE: SU). That's because the Canadian oil sands giant will finally see the fruit of its investment in two major growth projects. On top of that, the company should deliver further improvements at Syncrude after buying a majority stake in the legacy oil sands asset last year. These catalysts suggest that the best is still ahead for the company and its investors.
On the final day of 2012, Suncor Energy and its partners, which include oil giants ExxonMobil (NYSE: XOM) and Chevron (NYSE: CVX), sanctioned the Hebron project off of Canada's east coast. The companies have since invested about $14 billion into the project, which should finally start producing oil later this year. What's worth pointing out is that when the partners approved the Exxon-led project, oil was in the triple digits. However, even though oil started crashing a couple of years ago, the partners made the tough decision to continue the development. It's a decision that will start paying off later this year when Hebron begins ramping up to its capacity of 150,000 barrels per day. Given Suncor Energy's 22.7% stake in the project, it will be a meaningful contributor to production growth in the coming year.
image source: Suncor Energy.
Source: Fool.com
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