RE:Suncor wants to Operate I don't think they want to Operate Syncrude at all. The keep bashing Syncrude and how unreliable it is - and they use that as an argument for you to tender your shares. Yet Williams said that he does not want to operate Syncrude (unless he changed his mind again)!
https://calgaryherald.com/business/energy/suncor-expects-canadian-oil-sands-bid-rejection-as-first-reaction:
Suncor has no plans to become the operator of Syncrude and would work with partners to lower costs, Williams said. So why does Suncor want COS if they think Syncrude is a subpar asset, and they don't want to operate it? Of course it is simply because lease 29 will save them billions. They obviously want to take advantage by fear mongering COS shareholders in this downturn. Syncrude has been around for decades and has always weathered previous cycles. New oil reserves are simply going to become more expensive over the long term. Suncor knows that, that's why they need lease 29 adjacent to their mine, so they can profit years down the road. Oil companies don't work on a 12 month horizon. It is unfortunate some investors do. I certainly won't tender my shares at this price at the bottom of a cycle.
MyHoneyPot wrote:
Rightfully so Suncor wants to operate syncrude, and the only way to do that is buy COS. It operates all its other oil sands operations, and increased its interest in Fort Hills for a cost greater then the price they want to pay for COS. It needs lease 29 and it will eventually pay for lease 29. It makes a lot more sense for them to own COS ahead of that transaction, lease 29 is in Suncors future plan. Imagine to pay less for COS then they paid for Fort Hill which is a non operational bitumen producing property, without the same lease position that Syncrude has. Management at Suncor in in La La land and needs to come up with a better offer. Read more at https://www.stockhouse.com/companies/bullboard/bullboard/t.su/suncor-energy-inc-new#P4dL8ZtzEE4goBe6.99