Canada-based Suncor Energy (SU) reported weaker-than-expected third quarter results, hampered by lower commodity prices and higher operating expenses in its oil sands business, partly offset by increased production resulting from the Petro-Canada acquisition. Earnings per share, excluding certain items, came in at 23 Canadian cents (22 cents), below the Zacks Consensus Estimate of 31 cents. In the year-ago period, Suncor earned 87 Canadian cents (83 cents). Revenues were down marginally (by 0.8%) to C$8.4 billion.     Operating Statistics   The company reported operating earnings of C$288 million, down 64.4% year over year, while cash flow from operations dropped 49.9% from the prior-year period to C$574 million.   Production   Upstream production during August and September 2009 averaged 630,600 barrels of oil equivalent per day (BOE/d). Of this, 289,400 BOE/d came from the Petro-Canada acquisition. During the third quarter, volumes from Suncor’s legacy oil sands and natural ...

The U.S. stock market has run up magnificently in the last six months. The U.S. economy has begun to recover, but its performance has fallen short of expectations.

And with good reason. The United States has a bigger and more-troubled financial sector than most countries. It also has a bigger overhang from the housing bubble, has a bigger balance-of-payments deficit and has a budget deficit that’s fat enough to stall the recovery.

It would be nice to have an economic recovery to invest in that didn’t have all of these problems.

Truth be told, such an investment play does exist. What’s more, the market I have in mind is advanced enough for us to invest in it without having to go through all the rigmarole of American Depository Receipt (ADR) investing. Nor will you have to make a potentially risky foray out onto some foreign stock exchange to buy the

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Leave it to the government. It’s proposing a “tax and cap” regime for energy producers which will require fossil-fuel generating plants to pay extra.  The idea is to encourage clean fuels and discourage dirty ones. That’s fine in theory. But instead of helping our future energy situation, it’s going to make it a lot worse.The price of oil has already doubled in the past six months to over $60 per barrel. But it’s just the beginning of oil’s next gigantic price surge. If you thought that oil was ridiculously expensive last summer, you haven’t seen anything yet.

It doesn’t matter whether you believe in “Peak Oil” because this isn’t about Peak Oil coming to fruition. Peak Oil believes that oil discoveries have peaked leading to oil production’s inevitable decline.

This crisis will be strictly man-made. Governments and oil companies have already planted the seeds of the next great energy crisis. And there’s

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With oil finally trading back above the $50-a-barrel level, it’s time to recognize that crude prices are probably not going to remain low for very long, and may end up fluctuating in the $50-$80 range - regardless of what happens to the prices of other commodities. After all, the economies in both China and India are apparently continuing to grow at a fairly rapid pace, and those countries’ demand for transportation and other forms of energy are thus likely to keep pace. For some minerals, the period of high prices from 2005 to 2008 has produced a surplus. But no such effect has been seen in the oil market, as large new discoveries are hard to find. If we’ve learned anything in the last few years, it’s that political risk is very important in oil investments. It’s not just a question of outright ...

The Canadian Markets continued to fall ever so modestly during Tuesday’s session as the price of bullion dropped below the $900 per ounce mark. For the tale of the tape, the TSX Exchange fell 0.50%, while the TSX Gold Index lost 2.4% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, gave back 0.98% with the decliners beating out the advancers by a 416 to 336 margin on volume of 126 million shares traded.

UTS Energy shareholders have rejected the C$1.75 cash per share offer tabled by Total E&P Canada. As a result, Total has terminated the offer. UTS ended the session down C$0.06 at C$1.52.

Petro-Canada (NYSE:PCZ), which is in the midst of merger with Suncor (NYSE:SU), reported a first quarter loss of $47 million or $0.10 per share. Petro-Canada ended the day up C$0.07 at C$37.65.

NovaGold Resources (AMEX:NG) tabled a feasibility study for its 50

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Despite another increase in the unemployment numbers in the United States, the Canadian Markets continued to rally during Thursday’s session. For the tale of the tape, the TSX Exchange climbed 1.40%, while the TSX Gold Index tacked on 2.4% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, added 0.90% with the advancers beating out the decliners by a 402 to 312 margin on volume of 147 million shares traded.

Potash Corporation of Saskatchewan (NYSE:POT) tabled first quarter earnings of $308.3 million or $1.02 per share down from the $566 million or $1.74 per share tallied in the first quarter of 2008. Prices for potash actually rose during the quarter but demand fell by 86 per cent. Potash ended the day down C$2.91 at C$97.49.

Suncor Energy (NYSE:SU) reported a first quarter loss of C$189 million or C$0.20 per share with output hitting 278,000 barrels per day during

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Suncor Energy Inc. (SU) said it will buy rival Petro-Canada (PCZ) for $14.9 billion (C$18.43 billion) in a deal that will create Canadia’s largest energy company, with a refining capacity of 433,000 barrels per day.

More importantly for the future of both companies, the combined portfolio boasts the largest oil-sands resource position, a vital but difficult source to mine.

“It’s a good opportunity for Suncor to snap up some good assets at fairly depressed prices,” Greg Smith, managing director of London-based investment adviser Fat Prophets U.K. Ltd., told Bloomberg. “Oil sands are the legitimate solution to the long-term energy problem but it’s a lot more costly to get the oil out of the ground.”

The merged company will also feature:

A resource base with approximately 7.5 billion barrels of oil equivalent (boe) of proved (developed and undeveloped) and probable reserves, on top of an ...

The market opened the week with a spectacular day as the three major indices all closed up over 6%.  The Dow closed up $497.48 to close at $7775.86.  The NASDAQ and the S&P were up 676 and 708 basis points respectively.  The 10 year price was down closing at a yield of 2.68%.  Gold was down and settled at $952.5, while oil was up with the market settling at $53.80.

Financials led the market in response to the Treasury Department’s bad asset cleanup program.  Through this initiative, the Treasury plans to buy $500 billion to $1,000 billion in legacy loans and securities.  The government is encouraging private participation, and to do so the government is taking the majority of risk in this reconstruction effort.  Investors responded to the good economic news by buying financial stocks, including Bank of America [BAC: 7.80, +1.61 (+26.01%)] and Citigroup [C: 3.13, +0.51 (+19.47%)] which were

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Highlights include Suncor Energy, Inc. (SU), Petro-Canada (PCZ), EnCana Corp. (ECA), Canadian Natural Resource Ltd. (CNQ) and Marathon Oil Corp. (MRO).First Major Deal in Oil SpaceCalgary-based Suncor Energy (SU) is acquiring its hometown rival PetroCanada (PCZ) in an all-stock $18 billion deal, including the assumption of about $3 billion in PCZ debt. The boards of both companies have approved the transaction, which will require shareholder and regulatory approvals before completion. The deal is expected to close in the 3rd quarter of this year.PetroCanada shareholders will receive 1.28 Suncor shares for each PCZ share they own. This would represent a roughly 25% premium to the 30-day average PCZ trading price. On completion of the transaction, Suncor shareholders will own roughly 60% of the combined company, while current PetroCanada holders will own the rest.Suncor is a ...

Petro-Canada (PCZ) shares rose the most in six months after peer Suncor Energy Inc. (SU) agreed to acquire the oil-sands producer in an all-stock deal worth about $15 billion to create the largest Canadian energy company.

Under terms of the deal, Petro-Canada shareholders will get 1.28 shares of the merged company for each share they own. After the proposed transaction, Suncor shareholders will own about 60% and Petro-Canada shareholders will own nearly 40% of the newly created company. The deal is expected to get regulatory clearance from the Canadian government.

Slumping prices for crude oil since last summer have hurt both Suncor and Petro-Canada. With credit markets tightening further in the deepening recession, cash-rich companies are seeking to expand their value by acquiring smaller players. The proposed merger of Suncor and Petro-Canada will also help in saving more than $1 billion in annual expenses.

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