In our opinion, Suncor Energy (SU) is one of the best positioned companies to benefit from the oil price recovery over the next several years. The company's asset base includes substantial conventional reserves and production at offshore Eastern Canada and in the North Sea, which generate strong margins and should provide free cash flow to fund future oil sands expansion.
With a large portfolio of growth opportunities, unique asset base and high return potential in the long run, the company has a competitive edge over its peers. We are also encouraged by Suncor's improving oil sands operational performance and execution of its cost saving initiatives. The company is also getting back on track following its merger with Petro-Canada.
Additionally, given our bullish outlook for the medium-term oil price scenario, we think the company is nicely positioned to benefit from its leverage to commodity prices. Considering these factors, we believe Suncor is well positioned going forward and consider it an attractive investment.
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