Suncor Energy (SU) Stock Slips, Announces Reduced Emissions
NEW YORK (TheStreet) -- Shares of Suncor Energy (SU) - Get Report are falling by 0.44% to $27.38 in late afternoon trading on Friday, after the company announced it will be keeping greenhouse gas emission levels steady through 2030.
The Canadian oil-sands company plans to slash emissions per barrel by 30 percent, allowing Suncor Energy to stabilize its greenhouse gases at 21 megatons per year, the company stated. Without the emission reductions, greenhouse gases would increase to as much as 27 megatons, Bloomberg reports.
Suncor Energy acknowledged that the goal might be considered ambitious, but added that it will attempt to fulfill them by switching to lower-carbon fuels such as natural gas.
"It's definitely what I would call a 'stretch goal,' in the sense that we willl have to stretch ourselves in new directions to achieve it," Suncor's General Manager of Sustainability, Fiona Jones, said in a statement. "In the case of new projects, with new technologies, significant emissions reudtions are more easily achieved."
Last month, the company announced it will be selling $2 billion in additional equity to help reduce debt and fund its $937 million acquisition to raise its stake in the Syncrude oil-sands project.
Suncor is planning on increasing daily production to greater than 800,000 barrels in 2019 from about 600,000 barrels in 2015, Bloomberg reports.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate SUNCOR ENERGY INC as a Sell with a ratings score of D+. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow, poor profit margins and disappointing return on equity.
You can view the full analysis from the report here: SU
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