Paying down debt is always one of the alternatives in the capital allocation menu. That said, if interest rates on the debt are low, and the debt level is appropriate (in terms of net/debt, or net debt/equity), it can still be beneficial for companies to take advantage of debt financing. As interest charges are not only tax-deductible, if leverage is used prudently it is is also one way to compound capital at an above-average rate over time. SU currently has a strong balance sheet with net debt/EBITDA of only 0.8x; We like the capital return policies of the company given their strong financial position. Essentially, the use of any debt vs buybacks is a call on whether the company can compound growth faster than returning money to equity owners.
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