Shares of Suncor Energy (SU) soared 7.9% in trade on Wednesday, November 30, to close at $43.34 per share. One factor behind SU’s move up was certainly the fact that the Organization of the Petroleum Exporting Countries (OPEC) agreed to limit production. It is anticipated that OPEC member states will reduce oil output by more than 1.2 million bpd, or around 1% of global output. If the deal holds, the global supply of oil could potentially be reduced below current demand levels.
However, gains in Canadian energy names and SU in particular were also fueled by Canadian Prime Minister Justin Trudeau approving two major pipeline projects, which sent the Toronto Stock Exchange’s energy sub-index soaring by 8.9%. The approval encompassed the proposed expansion of Kinder Morgan Inc’s (KMI) Trans Mountain pipeline and the proposed Line 3 pipeline to the U.S. Midwest by Enbridge Inc (ENB).
There is also the potential for more pipeline approvals, with the Energy East project from TransCanada Inc. (TRP) proposed to ship around 1.1 million barrels of crude oil per day from Alberta to various refineries located on the East Coast of Canada. The possibility of a third export route is still being evaluated by the Canadian Government; a third export pipeline would be a potential catalyst for future SU gains.
Institutional Investor Activity
According to recent 13F filings with the SEC, a total of 44 institutional investors and hedge funds took out new positions in Suncor stock in the third quarter. KCG Holdings, Inc. opened a new position in SU stock, buying 59,571 shares at a value of $1.78 million. Schonfeld Group Holdings LLC took out a new position, buying 26,324 shares at a value of $790,000. (See also: Institutional Investors Boost Stakes in Suncor)
During the third quarter a total of 211 institutional investors increased their stakes in the third quarter, while 222 decreased their positions. SEI Investments Co purchased an additional 7,066 shares, taking their total holdings to 37,644 shares, valued at $1.13 million. Nikko Asset Management Americas, Inc. increased their position by 83.52%, buying an additional 15,200 shares, taking their total holdings to 33,400 shares, value at $1 million. Compagnie Lombard Odier SCMA decreased their position by 10.12%, to reduce their total holdings to 109,635 shares, valued at $3.29 million.