Suncor Sells Offshore Assets to Boost Shareholder Returns

Suncor Energy Inc. has reached an agreement to divest its non-core offshore assets, marking a strategic move to focus on core operations and enhance shareholder returns. The company will sell its 48% interest in Terra Nova, 40% interest in White Rose, and 38.6% interest in West White Rose to Ithaca Energy plc for a total of $1.2 billion in cash. Additionally, Ithaca will assume a $500 million regulatory well compliance program starting in 2027 at Terra Nova and the total estimated abandonment and lease liabilities of $1.4 billion.

This transaction, effective as of July 1, 2026, is expected to close in early 2027, subject to customary closing conditions, regulatory approvals, and partner consents. Suncor will retain its interests in Hebron and Hibernia. The deal is part of Suncor's ongoing efforts to align its portfolio with its competitive advantages and strengths, particularly in its large-scale, long-life oil sands resources.

In conjunction with this strategic move, Suncor has announced an increase in its share repurchase program. The company will now repurchase shares worth $750 million per month, up from the previous $500 million per month, starting in October 2026. This increased commitment to shareholder returns is in line with Suncor's broader strategy to grow normalized free funds flow by $2 billion and reduce WTI breakeven by US$5 per barrel through 2028, as committed during its 2026 Investor Day.

The transaction is expected to provide Suncor with significant financial benefits, including a cash inflow of $1.2 billion and the potential for an additional $350 million contingent payment based on future oil prices. Ithaca Energy plc, a leading independent operator in the UK North Sea, will bring new capital and significant offshore expertise to Canada's East Coast industry. As part of its entry into the region, Ithaca intends to assume operatorship of Terra Nova.

Suncor's commitment to delivering industry-leading performance and long-term shareholder value remains steadfast. The company's operations span the full energy value chain, including oil sands mining and in situ operations, upgrading, offshore production, petroleum refining in Canada and the U.S., marketing and trading, and nationwide Petro-Canada™ retail and wholesale networks. With an unwavering focus on safety, operational excellence, and profitability, Suncor is well-positioned to continue its growth trajectory.