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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 production; petroleum refining in Canada and the United States; and the Company’s Petro-Canada retail and wholesale distribution networks (including Canada’s Electric Highway, a coast-to-coast network of fast-charging electric vehicle (EV) stations). The Company is developing petroleum resources while advancing the transition to a lower-emissions future through investments in lower-emissions intensity power, renewable feedstock fuels and projects targeting emissions intensity. The Company also conducts energy trading activities focused primarily on the marketing and trading of crude oil, natural gas, byproducts, refined products and power. It also wholly owns the Fort Hills Project, which is located in Alberta's Athabasca region.


TSX:SU - Post by User

Comment by Clemxb7on May 31, 2023 10:28am
256 Views
Post# 35472346

RE:RE:RE:RE:46% Fort Hills stake may end up costing Suncor near nothing

RE:RE:RE:RE:46% Fort Hills stake may end up costing Suncor near nothingI can't say for sure how the tax pools will break between Fort Hills and Surmont because I am just some guy on the internet who doesn't have any inside info. However Fort Hills is the more recent project and it did cost considerably more than Surrmont. Even if they break 50%/50% Suncor stands to gain back up to a billion $ or even more if it turns out Fort Hills has the higher tax pools.

If that is the case then Suncor is paying somewhere under 20 cents on the dollar compared to the construction cost of $18 billion. Suncor would own the whole project for ~ $ 11 billion or a 40% discount when considering thier original investment.

So buying the 46% of Fort Hills is a no brainer for Suncor especially since they are the operator and cost per barrel will be lowered due to the above.

I wish Suncor got Surmont too however they didn't. Surmont is a good project and obviously worth $4 billion. That said it's clear Suncor got a better deal than Conoco Philips.



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