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Bullboard - Stock Discussion Forum Suncor Energy Inc. T.SU

Alternate Symbol(s):  SU

Suncor Energy Inc. is a Canada-based integrated energy company. The Company's segments include Oil Sands, Exploration and Production (E&P), and Refining and Marketing. Its operations include oil sands development, production and upgrading, offshore oil and gas production, petroleum refining in Canada and the United States and its Petro-Canada retail and wholesale distribution networks... see more

TSX:SU - Post Discussion

Suncor Energy Inc. > The French being the French?
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Post by mrmomo on Feb 17, 2023 8:20am

The French being the French?

I haven't posted anything on this board for a few months, but something caught my eye & peeked my interest, so i just had to say something. As you all know by now, Teck has thrown in the towel and has pretty much divested all of its interest in Fort Hills project. Last yeat Suncor picked up part of that divestiture from Teck, but not all of it. There was also some debte & speculation on who would pick up the last remaining interest from Teck on that project. Some favored Suncor gobbling it all up and others like me saying it could be only be two possible choices. If it's not Suncor, there's only Cenvous who would.....could.

And here we now are. It didn't turn out exactly how most of us expected. Right LOL? And there's really something bothering me here. What's Total's angle here, what are they up to? Because what they're doing, or have done in this case, doesn't quite add up. For those that don't know, Total is the French O&G multinational. They've had quite a presence in the Canaidan oil patch over the last two decades, specfically the Oil Sands projects. But they weren't the only ones, along with the several other European giants & important investors was also the massive American interests & Chinese presence. That's all gone now, well most of it anyway, for several reasons. Some out of the hands or control of Canadians & some by self inflicted wounds.

But coming back to Total's motives and not to go off in a tangent, what's their end game here? They've been saying for sometime they wanted to totally divest of their Canadian O&G intrests, especially the heavy oil/Oil sands and were looking for a buyer. Now granted, they did say the process would take some time, trying to find a suitble buyer AND that they preferred to go the way of a spinoff/sale rather than giving up their interests directly, like Teck has done. So why in the H did they all of a sudden pick up Teck's remaining interest and more or less C blocked Sucor from grabbing the rest? Out of anger or frustration? Out of spite? Or is this the Fench being the French where arrogance just comes with the package?

What i'm trying to get at here, is the following. I'm not quite sure what Total's end game is and what they're actually trying to achieve besides just pi$$ing off Suncor and making SU's current problems that much greater. I mean even if Total go the route of spinning off their Oil sands invesment into a different, stand alone company, hoping a moivated buyer would come in and merge with the newly formed company, who do they think would be the eventual (AND SOLE!) buyers lol? Taking a famous line from an obscure but cult film, "there could only be one!". Or in this case maybe two possible buyers. And i'll let you wager a guess who those two are. Most will get Suncor and the OTHER is no other than Cenovus herself. There are NO OTHERS, NONE. So what's Total trying to accomplish here? Set up a potential bidding war between two mutual & friendly entities so they can profit from it? LOL, i don't the Canadian ceo's of each respective company are that gullible or dumb to fall for that trick.

But let's just see how this plays itself out........i just need to get more popcorn though

GLTA
Comment by Experienced on Feb 17, 2023 10:01am
Great question... Can't say I have the answer, but here is one possibility as to why they might have done what they did. Teck in their "desperation" to get rid of their share of Fort Hills sold part of their stake to SU at a significant discount (hence the big writeoff by SU on their share).   Perhaps Total, figured that the price was lower than what they thought it was worth ...more  
Comment by mrmomo on Feb 17, 2023 10:14am
Lol....nice reply. I think you're on the right trail Experienced, and i had similar thoughts. My guess is that the French/Total were so upset/peeved off that Teck would sell that low, especailly to Suncor and that their share would get a similar valuation. What i don't understand and which i presume happend, didn't Teck consult ALL parties when they wanted to sellout, including Total ...more  
Comment by MigraineCall on Feb 17, 2023 11:08am
No, they did not consult me, LOL. I'm not that informed about these things, but if I were Total, I would not be happy with the low price Suncor paid either, and would try to stir the pot however I could to minimize the loss. Foreign companies change their strategies, and sometimes dumb decistions are made all the time as their boards are yanked around by the whims of influencers like ...more  
Comment by Experienced on Feb 17, 2023 11:57am
Yes many companies have been known to make bad decisions. In the case of Total, their situation is more complicated due to influence/involvement of the French Government.  When politicians are involved in business decision-making, the usual outcome is a bad decision or at best a confusing one. The other factor is that big companies in Europe are often held ransom by the EU technocrats in ...more  
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