Suncor Energy (SU.TO) had its Outperform stock rating and $65 price target confirmed by National Bank of Canada after the company provided an operational update after markets closed on Monday.
The update highlightes stellar performance across the portfolio in terms of fourth-quarter and full-year 2024 volumes, the bank said.
With assets outperforming the bank's and Wall Street estimates, National Bank said it expects production and cash flow per share estimates to trend higher in the coming days to account for the stronger-than-forecast end to the year.
The bank also expects 2025 to be another strong year for Suncor.
In the upstream, the company posted many records, including record quarterly and annual production of 874,000 barrels per day (b/d) and 827,000 b/d, respectively. This compares with the bank's estimates of 863,000 b/d and 825,000 b/d, respectively, and Wall Street's 831,000 b/d and 809,000 b/d, respectively.
In the downstream, Suncor posted both quarterly and annual refining throughput records of 487,000 b/d and 465,000 b/d, respectively, with record annual utilization of 100%.
The results are likely the key driver for significant buybacks seen in the fourth quarter of 2024, with about $1 billion worth of shares repurchased that quarter, the bank noted.
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