ABOUT THIS EPISODE
This audio is brought to you by Endress and Hauser, a global leader in process and laboratory measurement technology, offering a broad portfolio of instruments, solutions and services for industrial process measurement and automation.
Canada's Suncor Energy said on Sunday it had agreed to sell its interests in three offshore oil assets to London-based Ithaca Energy ITH.L for C$1.2-billion ($841.69-million) in upfront cash.
The deal covers Suncor's 48% interest in Terra Nova, 40% stake in White Rose and 38.6% interest in West White Rose, and includes an additional contingent payment of up to C$350-million tied to future oil prices.
Ithaca will also assume investment commitments and all future liabilities associated with the assets, including a C$500-million regulatory well compliance program starting at Terra Nova beginning in 2027 and the estimated abandonment and lease liabilities totalling C$1.4-billion, Suncor said.
Ithaca said the acquisition marks its first international deal and will establish a presence in offshore eastern Canada.
The deal is expected to be immediately accretive to Ithaca's adjusted EBITDAX, free cash flow and dividend per share from completion, Ithaca said.
"This transaction further focuses our efforts on opportunities that generate the greatest long-term shareholder value," Suncor CEO Rich Kruger said.
Suncor will retain its interests in the Hebron and Hibernia offshore projects.
Separately, Suncor said it has increased share repurchases under its normal course issuer bid to C$750-million per month from C$500-million beginning in October.
The transaction is expected to close in early 2027, the companies said.
Canada's Suncor Energy said on Sunday it had agreed to sell its interests in three offshore oil assets to London-based Ithaca Energy ITH.L for C$1.2-billion ($841.69-million) in upfront cash.
The deal covers Suncor's 48% interest in Terra Nova, 40% stake in White Rose and 38.6% interest in West White Rose, and includes an additional contingent payment of up to C$350-million tied to future oil prices.
Ithaca will also assume investment commitments and all future liabilities associated with the assets, including a C$500-million regulatory well compliance program starting at Terra Nova beginning in 2027 and the estimated abandonment and lease liabilities totalling C$1.4-billion, Suncor said.
Ithaca said the acquisition marks its first international deal and will establish a presence in offshore eastern Canada.
The deal is expected to be immediately accretive to Ithaca's adjusted EBITDAX, free cash flow and dividend per share from completion, Ithaca said.
"This transaction further focuses our efforts on opportunities that generate the greatest long-term shareholder value," Suncor CEO Rich Kruger said.
Suncor will retain its interests in the Hebron and Hibernia offshore projects.
Separately, Suncor said it has increased share repurchases under its normal course issuer bid to C$750-million per month from C$500-million beginning in October.
The transaction is expected to close in early 2027, the companies said.
English
United Kingdom
TRANSCRIPT 🔗
Are you the producer of this podcast?
Add a podcast transcript
Need Audio-to-Text?
Transcribe with Listen411 in Just 60 Seconds
SEARCH PAST EPISODES
Search past episodes of MiningWeekly.com Audio Articles.
OTHER EPISODES IN THIS PODCAST
This audio is brought to you by Endress and Hauser, a global leader in process and laboratory measurement technology, offering a broad portfolio of instruments, solutions and services for industrial process measurement and automation.
South Africa needs to find ways to build and sustain its alluvia…
This audio is brought to you by Endress and Hauser, a global leader in process and laboratory measurement technology, offering a broad portfolio of instruments, solutions and services for industrial process measurement and automation.
ASX-listed Osmond Resources has published a scoping study advanc…
This audio is brought to you by Endress and Hauser, a global leader in process and laboratory measurement technology, offering a broad portfolio of instruments, solutions and services for industrial process measurement and automation.
South Africa's Manganese Producers Consortium (MPC), which repre…
Mining Weekly Editor Martin Creamer discusses the catalytic properties of platinum and palladium being researched and developed as a potential source of significant upliftment for drones; the 828 000 t of manganese that went through Namibia’s Port; and the ordinary shares of Siba
Disclaimer: The podcast and artwork embedded on this page are from Creamer Media's Mining Weekly, which is the property of its owner and not affiliated with or endorsed by Listen Notes, Inc.
EDIT
Thank you for helping to keep the podcast database up to date.