Oil Company Wins Over Investors by Promising to Stop Looking for Oil – WSJ

One of the best-performing oil companies in the past year is gaining favor with investors in part by embracing an unusual strategy: promising not to reinvest in its core business “in the foreseeable future.”

The company is  Suncor Energy Inc., SU -0.78% Canada’s largest oil producer, and the core business is the country’s controversial oil sands. A host of big international oil companies have plotted a speedy retreat from the region because of concerns about how the once-booming area can remain lucrative in the face of regulation to limit carbon emissions and relatively cheap U.S. shale drilling.Despite the cloud over the oil sands, Suncor shares outperformed every major North American oil company from June 2016 to May, as well as the S&P 500 index. Most other energy producers have been routed as crude prices have fallen by almost 20% since April.

Source: Oil Company Wins Over Investors by Promising to Stop Looking for Oil – WSJ

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