Sunoco, Inc. (SUN)

I'd be pitching these guys even if they weren't my current employer:-) Bottom line is none of the refiners can make gas fast enough to keep up with demand, which is at an unprecedented level and expected to go up even more. Sunoco only refines and markets and does no exploratory drilling, so as long as demand is high they're bound to make money.

It’s bumpy, but stable ride ahead for Sunoco. The company’s Toledo debottleneck project to expand crude capacity by 20,000 barrels a day is well on track and expected to contribute to earnings in second half of 2007. In addition, company’s FCC expansion at Philadelphia refinery for upgrading low value residual fuel and widening crude, looks attractive even after spending higher than expected capital spending of $500.0 million. The project is expected to be online in early second quarter of 2007 and will further boost margins expansion.

Rising oil demand, tepid non-OPEC supply growth, and OPEC production cuts have resulted in a drawdown in oil inventories and would result in a tight summer oil markets. The U.S. petroleum consumption is projected to increase by an average 1.5% and 1.3% per year in 2007 and 2008, respectively. Whereas, the average U.S. domestic crude oil production is expected to decrease 0.6% in 2007 and would eventually rise 4.3% in 2008.

As a result, U.S. will meet its crude demand from OPEC, as well as non-OPEC countries.

United States motor gasoline consumption growth is projected to average 1.2% per year, reflecting continuing economic growth; distillate (diesel fuel and heating oil) consumption is to increase 2.1% in 2007 and 1.6% in 2008; and demand for jet fuel is to increase by an average of 2.7% and 1.9% in 2007 and 2008, respectively. Residual fuel oil, following last year’s decline in consumption of 239,000 bbl/d (26%), is expected to grow by 67,000 bbl/d in 2007 and 26,000 bbl/d in 2008. As a result, Sunoco will benefit from increase in customers demand and would thus result in stable earnings.

Sunoco continues to adopt its cost cutting, two-folded strategy i.e. focusing both its refining and marketing operations in Northeastern and Midwestern U.S. and thus reducing transportation costs, and selling products through its retail outlets at competitive prices. Further, the company has delayed some of its capital-intensive, long-hour projects to avoid cost overruns due to currently higher construction and engineering costs. With capacity expansion projects, positive industry synergies, cost-cutting strategies and highest dividend payer among independent refiners, Sunoco to remain attractive.

Sunoco (SUN) seems undervalued to me, EPS for past three years have been about doubling. I think it's only a matter of time before the stock price catches up with the earnings potential of the company.

lets just say that we will be needing theese fellows for quite awhile. Value is what you get. "Be fearful when others are greedy and greedy only when others are fearful. "-Buffett. Gonna be a monster till at least 2012.

Oil. Good value.

the crack spread is widening and demand for gasoline continutes to be strong despite increasing prices. Additionally, any disruption via hurricane, refinery shutdowns, etc., will be sources for price spikes

I will want to buy this in "real life"

crack spreads will improve as year progresses and SUN will benefit noticeably

good oil play, beaten down 60% from 52 week high

Great value. Oil companies up !!!

oversold

Refiners are a critical piece of the crude-to-gasoline/diesel pipeline, and as demand picks up, especially this summer, the stock prices will rise dramatically

Low PE, Great brand with good service, love their gas and mini marts.

oil is bound to go up. Good dividend. Solid company.

The Company, through its subsidiaries, is a petroleum refiner and marketer and chemicals manufacturer with interests in logistics and cokemaking; petroleum refining and marketing operations include the manufacturing and marketing of petroleum products.

with all the oil price drama going on, we're sure to see some regulations come out of it all. this will invariably bring the margins back to the refiners. and fast.

Female CEO: Lynn Laverty Elsenhans

Cost of raw materials will not come down significantly and the US consumer will continue to reduce the amount of oil and gas they use.

is nascar wrong?