Will Suncor Energy Buy Upstream Assets In Eastern Canada?
Zacks Investment Research | Jun 22, 2016 08:54AM ET
In order to boost its offshore upstream operations Suncor Energy Inc. (NYSE:SU) – Canada’s premier integrated energy player – is now planning to acquire properties in the North Sea and eastern Canada, going by Reuters.
The source revealed that it has been easy to procure properties amid weak oil prices – although the commodity is walking on the bullish path but is still way below the mid-2014 level. Most importantly, the transaction will likely be worth as high as several hundred million dollars to a few billion dollars.
It is to be noted that, if successful, the acquisition will enhance the company’s reach from its oil sands operations – the major source of business. Investors should also note that the company is looking forward to acquire downstream properties – which include refineries – in the U.S.
Suncor is now on its way to re-evaluate its growth strategy after its operations were hurt by the massive Canadian wildfire. Suncor and the other leading producers of oil in the region were compelled to stop their operations for weeks following the wildfire. In fact, with this production halt, output of oil in Canada fell by more than 1 million barrels per day.
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