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Suncor acquires Murphy's Syncrude interest for US$743 million


Suncor acquires Murphy's Syncrude interest for US$743 million

Report summary

Suncor Energy is to acquire an additional 5% interest in the Syncrude oil sands mining project from Murphy Oil. The all-cash transaction is worth Cdn$937 million (US$743 million) and increases Suncor's interest in the Syncrude project from 48.74% to 53.74%. This deal is the third oil sands mining related transaction Suncor has completed over the past eight months, including the acquisition of Canadian Oil Sands' 36.74% interest in the Syncrude project in January 2016 and a 10% acquisition of Total's interest in the Fort Hills oil sands mining project in September 2015. For Suncor, the deal reiterates its growth-oriented and counter-cyclical strategy. The acquisition solidifies Suncor's position as not only the top oil sands miner but also the top oil sands producer by total volume. For Murphy, the transaction provides the opportunity to divest a small interest in a non-core, non-operated asset.

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Description

The upstream oil and gas industry conducts activities against a backdrop of growing energy and environmental challenges. Political instabilities, international conflicts and government and environmental regulation have all impacted the production process.

This has forced companies to re-examine their corporate strategy, moving away from high-risk exploratory drilling to lower-risk exploration in mature basins as they search for increased returns.

This Upstream Oil and Gas Deal Insight report provides an in-depth analysis of this deal. You will also find information about upstream assets and the strategic rationale behind the deal.

For investors and businesses, this deal insight report provides an understanding of the effect this deal will have on the market, including oil and gas pricing and assumptions. Use it to keep up to date with deal announcements, gain expert insights and analyse potential developments that might affect your strategy.

Wood Mackenzie goes beyond company-reported data and announcements to give you an independent and informed view. Our unique valuation metrics are underpinned by our deep understanding of upstream assets and companies. We help you objectively benchmark and evaluate asset and corporate deals so you can compare deal economics around the world.

  • Executive summary
  • Transaction details
  • Upstream assets
  • Deal analysis
  • Upsides and risks
    • Operational performance
  • Strategic rationale
  • Oil & gas pricing and assumptions

In this report there are 8 tables or charts, including:

  • Executive summary
    • Executive summary: Table 1
  • Transaction details
  • Upstream assets
    • Upstream assets: Table 1
  • Deal analysis
    • Deal analysis: Table 1
    • Deal analysis: Table 2
    • Deal analysis: Table 3
  • Upsides and risks
  • Strategic rationale
    • Murphy Oil production profile (entitlement basis)
  • Oil & gas pricing and assumptions
    • Oil & gas pricing and assumptions: Table 1
    • Oil & gas pricing and assumptions: Table 2
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