Centrica and QPI acquire Suncor's conventional WCSB assets for Cdn$1 billion
In the largest conventional Canadian gas deal for three years, Centrica and Qatar Petroleum International (QPI) will acquire Suncor's conventional western Canadian assets for Cdn$1 billion (US$987 million). The partnership will gain a 90% gas-weighted portfolio and over one million acres of undeveloped land. Our valuation of the deal is US$945 million. Our modelling implies a long-term (breakeven) gas price of US$4.76/mcf. The balance of risk is to the upside. The deal is the first ...