Published on 23 May 2024 on Zacks via Yahoo Finance
Key Takeaways From Suncor's (SU) Business Update
Canadian energy major Suncor Energy SU has unveiled a comprehensive business update, underscoring its commitment to shareholder value through accelerated stock buybacks and strategic debt reduction. This move has bolstered investor confidence, reflected in a notable surge in the company’s share price. The transformation, driven in part by activist investor Elliott Investment Management, signals a new chapter for Suncor as it aims to enhance efficiency and production.
Share Buyback Boost & Debt Reduction
In a major development, Suncor announced an increase in its share repurchase program to 75% of its free funds flow this quarter, with plans to escalate this to nearly 100% once net debt is reduced to C$8 billion from just under C$9 billion. CEO Rich Kruger indicated that the company might achieve this debt target by mid-2025 or even by the end of this year. This aggressive buyback strategy aims to return substantial capital to shareholders, a key demand from Elliott Investment Management.