Ithaca Energy to acquire Suncor’s Canadian offshore oil assets for $860 million cash
Ithaca Energy announced a cash purchase of Suncor Energy’s offshore stakes in Terra Nova, White Rose and West White Rose for $860 million, with up to $250 million in additional payments tied to Brent prices. The assets add 103 million barrels of oil‑equivalent reserves and are expected to lift Ithaca’s production to 30‑40 kbpd by 2029. The transaction is slated to close in the first half of 2027, subject to regulatory approvals.
Why it matters
Ithaca expects the deal to be immediately accretive to its adjusted EBITDAX and free cash flow, supporting higher dividend payouts. Suncor will use the proceeds to fund increased share repurchases, as noted in its statement.
Key facts
- 1Ithaca will pay US$860 million in cash for the assets. investing.com
- 2An additional up to US$250 million may be paid if average Brent prices exceed specified thresholds over a 27‑month period starting July 1 2026. investing.com
- 3The assets contain a 48 % operated stake in Terra Nova, a 40 % non‑operated stake in White Rose Existing Lands and a 38.6 % stake in White Rose Growth Lands, including West White Rose. investing.com
- 4The acquisition adds 103 million barrels of oil‑equivalent (mmboe) proven and probable reserves. investing.com
- 5Ithaca expects the assets to contribute about 30,000 boe/d on average between 2027‑2031, rising to 35,000‑40,000 boe/d by 2029. investing.com
- 6Closing is expected in the first half of 2027, subject to approval under Canada’s Competition Act. investing.com
Open questions
- Other reports list the total deal value as US$1.2 billion (material 4) or up to US$1.11 billion (material 5), conflicting with the US$860 million figure.
- Contingent payment amounts are reported as up to US$250 million (materials 1‑3, 6) or up to US$350 million (materials 2, 4).
Summary written by AlphAI from 6 of 6 sources. Not investment advice. Figures are as stated by the linked sources.