CALGARY - Energy companies start reporting their third-quarter results today amid an environment of plunging oil prices and with credit and equity markets in disarray. 3 Z$ _) Q" [+ f8 _" {5 K ! w8 _8 `' N$ O2 {8 pAs oil closed at US$74.25, up US$2.40 on the day -- above last week's low of US$67 but a far cry from its peak of US$147 per barrel in July -- it's clear the days of wondering how amazing the profits will be are over.9 c7 N' f- j4 R3 e" i( s) s
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This time around, capital expenditure plans will be under the microscope. Budgets may still be undergoing finishing touches, but do not expect the Street to wait for the nitty-gritty details.2 S7 _! t: C2 }* k5 [0 i
% G* B3 z1 w3 c: j& wTake the mammoth Suncor Energy Inc. (SU/TSX) as an example of the dramatic cuts that may be coming. 9 N- H B" r4 r6 ]% k7 z2 ?4 \' D/ j3 ~& E
"We would not be surprised to see Suncor take a more conservative stance towards spending by scaling back its $9-billion to $10-billion 2009 capex program to the $5-billion to $6-billion range," said Andrew Potter, an analyst at UBS Securities Inc. 9 Q8 O* D7 l' w: T6 e$ \5 H % ]8 G( }/ j7 W/ ?4 y. R) C$ dhttp://www.financialpost.com/money/story.html?id=895061