{"id":1163,"date":"2022-10-28T21:30:03","date_gmt":"2022-10-28T21:30:03","guid":{"rendered":"https:\/\/tradersontrend.com\/?p=1163"},"modified":"2022-10-28T21:30:03","modified_gmt":"2022-10-28T21:30:03","slug":"suncor-will-pay-1b-for-tecks-oilsands","status":"publish","type":"post","link":"https:\/\/tradersontrend.com\/h\/2022\/10\/28\/suncor-will-pay-1b-for-tecks-oilsands\/","title":{"rendered":"Suncor Acquires Teck&#8217;s Oilsands Operations for $1 Billion"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"1163\" class=\"elementor elementor-1163\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-3fe008c2 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"3fe008c2\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-4722f3ee\" data-id=\"4722f3ee\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-7c6725c7 elementor-widget elementor-widget-text-editor\" data-id=\"7c6725c7\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.21.0 - 26-05-2024 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#69727d;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#69727d;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t<p style=\"text-align: left;\"><a href=\"https:\/\/www.suncor.com\/\">Suncor Energy Inc.<\/a> will buy out Teck Resources Ltd.&#8217;s 21.3% stake in the Fort Hills oilsands project for about $1 billion, the two companies said late Wednesday.<\/p><p style=\"text-align: left;\">The oilsands mine north of Fort McMurray, Alberta, has a capacity of 194,000 barrels per day and is currently owned by Suncor, Teck, and the French company Total Energies EP Canada Ltd.<\/p><p style=\"text-align: left;\">When the deal is finalized, Suncor, which is based in Calgary and runs Fort Hills, will have a 75.4% stake in the oilsands project. The rest, or 24.6%, will be owned by TotalEnergies.<\/p><p style=\"text-align: left;\">In a news release, Suncor interim president and CEO Kris Smith said, <em>&#8220;The acquisition of an additional interest in Fort Hills meets our return goals, builds on our strategy to optimize our portfolio around our core operated assets, and shows Suncor&#8217;s confidence in the long-term value of the Fort Hills project.&#8221;<\/em><\/p><p style=\"text-align: left;\">The Fort Hills oilsands mine opened in 2018, but it has had a lot of problems since then.<\/p><p style=\"text-align: left;\">The mine wasn&#8217;t able to quickly reach full capacity because the Alberta government decided in 2019 to cut back on oil production in the province. <br \/><br \/>This was done to help fix the growing price discount for Canadian oil, which was caused by a lack of pipeline export capacity.<\/p><p style=\"text-align: left;\">Then, in 2020, the COVID-19 pandemic caused oil prices to drop, which shut down one of Fort Hills&#8217; two production trains.<\/p><p style=\"text-align: left;\">Suncor said that the deal announced on Wednesday is based on the current market value of Fort Hills. As a result, Suncor will take a non-cash accounting impairment charge of about $2.6 billion on its existing 54.1 per cent interest when it reports its third-quarter results on November 2. <br \/><br \/>On Nov. 29, the company will also give a talk to investors.<\/p><p style=\"text-align: left;\">Teck, which is based in Vancouver, said it expects to take a non-cash impairment charge of $950 million in the third quarter of 2023. <br \/><br \/>Teck will hold its earnings call for the third quarter on Thursday morning.<\/p><p style=\"text-align: left;\">Teck has said for a long time that it would like to sell its share of Fort Hills. <br \/><br \/>The company is building a copper mine in Chile that will cost $5 billion. <br \/><br \/>It has said that it wants to focus on metals and minerals that are important for a world with less carbon like copper, zinc, and coal used to make steel.<\/p><p style=\"text-align: left;\">In a press release on Wednesday, Teck CEO <a href=\"https:\/\/www.teck.com\/about\/leadership\/jonathan-price-1#:~:text=Jonathan%20Price%20was%20appointed%20Chief,joined%20Teck%20in%20October%202020.\">Jonathan Price<\/a> said, <em>&#8220;This transaction advances our strategy of pursuing industry-leading copper growth and rebalancing our portfolio of high-quality assets to low-carbon metals.&#8221;<\/em> <br \/><br \/>The company will review how to use the money from the sale early in 2023.<\/p><p style=\"text-align: left;\">Suncor said on Wednesday that it had done a thorough review of the Fort Hills project and had started a multi-year improvement initiative&#8221; to increase the mine&#8217;s output and lower its operating costs.<\/p><p style=\"text-align: left;\"><em>&#8220;Even though the Fort Hills mine had problems in its early years, including problems caused by government-ordered production shut-downs, I have full confidence in our current mine plan, which was made with fresh outside mining perspectives.&#8221;\u00a0<\/em>according to Smith.<\/p><p style=\"text-align: left;\">Suncor said it will pay for the deal with cash from the sales of assets that are already happening.<\/p><p style=\"text-align: left;\">The deal will go through in the first quarter of 2023 if the government gives its approval.<\/p><p style=\"text-align: left;\"><em>For More Stocks And Investment Related News, Click <a href=\"https:\/\/tradersontrend.com\/\">Here<\/a>.<\/em><\/p><p>\u00a0<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Suncor Energy Inc. will buy out Teck Resources Ltd.&#8217;s 21.3% stake in the Fort Hills oilsands project for about $1 billion, the two companies said late Wednesday. The oilsands mine north of Fort McMurray, Alberta, has a capacity of 194,000 barrels per day and is currently owned by Suncor, Teck, and the French company Total&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[449,577,581,589],"class_list":["post-1163","post","type-post","status-publish","format-standard","hentry","category-newsletter","tag-partnership","tag-stocks-news","tag-suncor","tag-teck"],"_links":{"self":[{"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/posts\/1163","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/comments?post=1163"}],"version-history":[{"count":0,"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/posts\/1163\/revisions"}],"wp:attachment":[{"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/media?parent=1163"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/categories?post=1163"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/tags?post=1163"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}