Suncor Energy (TSX:SU)(NYSE:SU) stock has climbed 12.2% in 2019 as of close on February 11. Shares have dropped 3.6% over the past three months, largely due to broad stock market weakness and a dip in oil and gas prices in the final quarter of 2018.
The plunge in oil and gas prices has harmed other energy stocks, but Suncor is well equipped to weather the storm.
The company released its fourth-quarter and full-year results on February 5. Cash flow from operating activities rose to $3.04 billion compared to $2.75 billion in the prior year. Total oil sands production reached another quarterly record of 740,800 barrels per day, which beat the last record by almost 90,000 barrels.
Suncor ultimately posted a net loss of $280 million in the quarter.
The price differential between Western Canadian Select (WCS) and West Texas Intermediate (WTI) was a drag on earnings in Q4, but Suncor’s refinery operations did manage to offset a good portion of this difference. That price differential has narrowed since Alberta promised production cuts, but this is a policy Suncor openly opposed.
Suncor has demonstrated that it is capable of powering through even the most tumultuous conditions in the oil and gas sector. The company has achieved 16 consecutive years of dividend growth.
Currently Suncor stock offers a quarterly dividend of $0.42 per share which represents a 3.3% yield. Suncor stock is not the screaming buy it was in late December, but it is still a worthwhile buy-and-hold for income investors.
