Better to buy distressed CND O&G assets than share buybacksFort Hills nameplate is 195 k and cost $18 billion to build so Suncor got both these projects for pennies on the dollar.
Suncor has increased production by around 15% (113k / 750k) with good prospects to signifigantly increase Fort Hills to maneplate like previous to 2020. Suncor will grow revenues by minimum ~10%.
At the average cost of shares in April (~$42.5) that is also $5.5 billion to buyback 10% of shares.
This deal bought decades of resources where buying back shares gives nothing like that.
The tax pools are worth at least $2 billion though likely more so the purchase cost of Surmont and Fort Hills is more like $2.5 to $3.5 billion.
This deal was actually very good for the future prospects of Su and grew the company by 10%.
Really intersted to see what they say about the deal today.