Suncor Energy eyes further M&A opportunities

Not satisfied with its $6.6-billion acquisition of Canadian Oil Sands Ltd., Suncor Energy Inc.(TSE:SU, Mkt cap 58.80B, P/E – , Div/yield 0.29/3.13, EPS -1.38, Shares 1.58) says it remains in the market for other M&A opportunities that might come its way, the Financial Post reports.

suncor energy acquisition

Suncor Energy Centre – Suncor is eyeing further M&A opportunities

Last month saw Suncor take complete ownership of Canadian Oil Sands after finally succeeding to win over resistant Canadian Oil Sands management and shareholders.

That acquisition gave it 59% control of the Syncrude asset that produces synthetic crude oil from the oilsands, with Imperial Oil Ltd., Sinopec Ltd., Nexen-CNOOC Ltd., Mocal Energy Ltd. and Murphy Oil Corp. also holding stakes in the company.

Alister Cowan, Suncor chief financial officer, speaking in an interview on the sidelines of an energy conference in Toronto, said it’s not out the question that it will add to its Syncrude stake.

“We continue to look at M&A opportunities. If there are opportunities to buy more of Syncrude at the right price, we would be interested. Same for Fort Hills,” he is quoted.

In 2015, Suncor also acquired a slice of partner Total SA‘s share in the Fort Hills development, which is expected to begin producing oil at the end of 2017. That left the Calgary-based firm with just over half of the 180,000-bpd oilsands project – Total and Teck Resources Ltd. make up the rest.

The start-up of the Fort Hills project, alongside the Hebron development, will see Suncor increase production to 800,000 bpd by 2020 from 578,000 bpd last year.

“That’s a growth of six per cent per annum, per share,” Cowan said. “Beyond that, we have about 400,000 bpd of potential production from sweet spots in our SAGD reservoirs.”

He added that the company decided to defer these developments for the “next two to three years” as it doesn’t want to commit to any big projects beyond Fort Hills for the time being.

Suncor Energy Inc. in a Calgary, Alberta based integrated energy company. The Company is focused on developing Canada’s petroleum resource basin, Athabasca oil sands. The Company operates in three business segments: Oil Sands, Exploration and Production, and Refining and Marketing. The Company’s Oil Sands segment includes Oil Sands operations and Oil Sands ventures operations. Its Exploration and Production segment consists of offshore operations off the east coast of Canada and in the North Sea, and onshore assets in North America, Libya and Syria. The Company’s Refining and Marketing segment is engaged in Refining and Supply, and Downstream Marketing. In addition, the Company explores, for, acquires, develops, produces and markets crude oil and natural gas in Canada and internationally. The Company also transports and refines crude oil, and markets petroleum and petrochemical products primarily in Canada. More from Reuters »

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