Suncor Energy Expects 10 Percent Annual Growth: CEO
Suncor Energy's merger with Petro-Canada will soon begin reaping results for the company and shareholders, the firm's chief executive told CNBC's "The Strategy Session" on Thursday.
"Where thirteen months after the merger with Petro-Canada. It's not unusual for a company that's gone through a large merger to kind of be in the penalty box for a while. We're getting ready to get out of the penalty box," said Rick George, Suncor's president and CEO.
For quite a while, Suncor, North America's fifth-largest energy company,was creating an enormous amount of value for its shareholders. More recently, that has not been the case.
"In our primary business, which is oil sands, we expect to grow in the 10 to 12 percent per year over the next decade. If you think about that—in an oil patch where most big oil companies are struggling—replacing reserves and getting production rates (up), this is going to look very good on our overall basis," George said.
He added, "Later this fall we will announce the sequence of projects—most of which we have regulatory and environmental approval for."
The purchase of Petro-Canada for $22.2 billion last year was done, according to the Suncor CEO, "to create $400 million of expense savings per-year and a billion dollars on capital savings."
"The ability to cut costs and at the same time get prepared to grow the company is all there," George said, adding, "where on the right track."