Ithaca Energy to buy Suncor's Canadian offshore assets for $860 million

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Summary · why it matters

Ithaca Energy has agreed to buy Suncor Energy's offshore Canadian assets for $860 million in cash, its first acquisition outside the UK, sending shares in the North Sea oil producer up 3%. Suncor could receive a further $250 million depending on average Brent crude prices over a 27-month period starting July 1, 2026, with any additional payment funded from Ithaca's free cash flow. The deal, expected to close in the first half of 2027, gives Ithaca a 48% operated stake in Terra Nova, a 40% non-operated stake in White Rose Existing Lands and a 38.6% stake in White Rose Growth Lands, including the West White Rose development. Ithaca said the assets add 103 million barrels of oil equivalent of proven and probable reserves at an acquisition cost of about $8 per barrel of oil equivalent, and should contribute average production of about 30,000 barrels of oil equivalent per day between 2027 and 2031, rising to 35,000-40,000 barrels per day in 2029 as West White Rose ramps up. The assets generated about $235 million of adjusted EBITDAX in the 12 months to June 30, 2026, and Ithaca plans to fund the upfront payment with cash, its existing borrowing facility and secured financing in Canada, while assuming all decommissioning obligations; the transaction needs approval under Canada's Competition Act and carries a $50 million break fee in certain circumstances.

Impact on assets 4

Energy▲ · 2 stocks
Ithaca Energy PLC
ITH
▲ PositiveCapitalrelevance

Ithaca Energy's first acquisition outside the UK adds 103 million boe of reserves and ~30,000 boe/d production for $860 million

Suncor Energy Inc
SU
▲ PositiveCapitalrelevance

Suncor agrees to sell its Canadian offshore assets to Ithaca for $860 million cash plus up to $250 million contingent on Brent prices

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