Buy-recommended Suncor (SU),owner of the oldest and currently second largest operating oil
sands mine and upgrader in Canada,has regulatory approval and expects to spend $2 billion in 2007 towards ultimate capacity of 500 thousand barrels daily (mbd) by 2012.
The aggressive new expansion is being pursued at the same time the current expansion to 350 mbd by 2008 is still unfolding.Understandably,current operations of 250 mbd are seeing higher costs amid all the surrounding activity.As a result,projected costs in our estimate of cash flow take account of higher levels incurred in the latest quarter reported on January 25.
The path to 350 mbd,let alone 500 mbd,is not smooth as we have seen for Syncrude,the largest oil sands producer with recently completed capacity of 350 mbd.Our present value estimate for Suncor of $47 billion compares to $50 billion for Syncrude.That translates into net present value of $95 a share for Suncor stock that we carry at a half unlevered weighting in the illustrative McDep Energy Portfolio,concentrated on real assets that promise a high return providing clean fuel for global growth.
“千桶每日” 国际原油计量单位
这是一段外文,从上面第三行可以看出,是 thousand barrels daily (mbd)