Paul Singer’s Latest Portfolio: Top 10 Stock Picks

3. Suncor Energy Inc. (NYSE:SU)

Elliott Management’s Equity Stake: $1.88 Billion

Number of Hedge Funds Holding Stakes: 50

Suncor Energy Inc. (NYSE:SU) is an integrated energy company that extracts, produces, and provides energy from various sources, including oil sands, and renewable fuels. It is the third largest holding in Paul Singer’s portfolio, favored for its solid 4.43% dividend yield, ideal for generating passive income.

Suncor Energy Inc. (NYSE:SU) delivered solid fourth-quarter results on February 5 with an adjusted profit of C$1.25 ($0.8733) a share, above analysts’ estimate of C$1.10. The earnings that were better than expected were driven by increased oil production and strong sales of refined products. Suncor’s refining throughput was 486,000 barrels per day (bpd), while its upstream production was close to 875,000 bpd. Heightened production indicates the company is well positioned to exploit favorable oil market conditions to maintain consistent cash flow and profitability.

With the opening of the Trans Mountain pipeline expansion, Suncor Energy Inc. (NYSE:SU) will have more ability to ship its goods to buyers abroad, with an additional 590,000 barrels per day. Suncor will benefit in the long run from this since it should allow the corporation to obtain higher oil prices and more capacity to handle production growth. Suncor has also invested in operational optimization, emphasizing cost-cutting and efficiency enhancements.