Suncor to sell offshore Canada oil stakes to Ithaca for $842 million
SU•Suncor agreed to sell its stakes in three offshore Canadian oil assets to Ithaca Energy for C$1.2 billion ($841.69 million) in upfront cash, plus up to C$350 million in contingent payments. The deal is expected to close in early 2027.
1. Sale covers three assets
The deal covers Suncor’s 48% interest in Terra Nova, 40% stake in White Rose and 38.6% interest in West White Rose. Ithaca will assume investment commitments and future liabilities, including a C$500 million regulatory well compliance program at Terra Nova beginning in 2027 and estimated abandonment and lease liabilities totaling C$1.4 billion.
2. Ithaca expects contribution
Ithaca said the acquisition marks its first international deal and will establish a presence in offshore eastern Canada. It expects the deal to be immediately accretive to adjusted EBITDAX, free cash flow and dividend per share from completion.
3. Suncor boosts buybacks
Suncor will retain its interests in the Hebron and Hibernia offshore projects. Separately, it increased share repurchases under its normal course issuer bid to C$750 million per month from C$500 million, beginning in October.
