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Suncor Energy acquires TotalEnergies EP Canada for $1.468 billion

EditorRachael Rajan
Published 2023-11-20, 04:54 p/m
© Reuters

CALGARY - Suncor (TSX:SU) Energy (NYSE:SU) has completed the acquisition of TotalEnergies (EPA:TTEF) EP Canada Ltd., taking full ownership of the Fort Hills Project in Alberta's Athabasca (TSX:ATH) oil sands region. The deal, valued at $1.468 billion and effective as of April 1, expands Suncor's already extensive operations in the energy sector.

With this strategic move, Suncor strengthens its position in the North American market. The company's activities span from oil sands extraction and upgrading to offshore oil and gas production, as well as refining operations across the continent. Additionally, Suncor operates Petro-Canada™ retail outlets and maintains the Electric Highway™ network, which provides fast-charging stations for electric vehicles.

The acquisition signifies a major step in consolidating Suncor's assets in the Fort Hills area, located north of Fort McMurray, allowing for enhanced operational efficiency and resource management.

Listed under the ticker SU on both the Toronto Stock Exchange (TSX) and New York Stock Exchange (NYSE), Suncor is not only a key player in energy production but also actively participates in energy trading markets. The company's commitment to sustainable practices has been recognized by its inclusion in the Dow Jones Sustainability Index and by CDP, reflecting its ongoing efforts to balance energy development with environmental stewardship.

As Suncor integrates TotalEnergies EP Canada Ltd.'s assets into its portfolio, it continues to focus on providing energy solutions that meet the demands of a dynamic global market while prioritizing sustainability and innovation.

InvestingPro Insights

Suncor Energy (SU), a prominent player in the Oil, Gas & Consumable Fuels industry, has proven its stability with the maintenance of dividend payments for 31 consecutive years. In fact, the company has a high shareholder yield and is trading at a low P/E ratio relative to near-term earnings growth. This, along with the fact that the stock generally trades with low price volatility, makes it an interesting option for investors looking for stability and potential growth.

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InvestingPro's real-time data shows that Suncor has a market cap of 43.45B USD and a P/E ratio of 7.39. Over the last twelve months as of Q3 2023, the company has shown a gross profit margin of 61.19% and an operating income margin of 21.93%. Furthermore, its revenue of 36961.07M USD, despite showing a slight decline, is a testament to its significant presence in the energy sector.

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This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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