Atlantic assets change hands
Suncor Energy Inc. (TSX: SU, NYSE: SU) said October 4 it entered an agreement to divest its interests in the Terra Nova, White Rose, and West White Rose projects offshore Newfoundland and Labrador to Ithaca Energy. Suncor said the transaction includes C$1.2 billion in upfront consideration and up to C$350 million in contingent payments tied to project milestones.
In the same release, Suncor said it intends to increase the pace of its normal-course issuer bid to repurchase up to C$750 million of its common shares per month, from C$500 million per month previously disclosed. Management framed the Atlantic sale as simplifying the portfolio around core oil sands and downstream assets while returning capital to shareholders.
The announcement is a signed divestiture agreement and buyback pace change. It is not closing confirmation, not revised oil sands production guidance for the current quarter, and not a dividend declaration for the payment date in this release.