Good morning!
Suncor has Newfoundland oil stakes on the menu, and a British buyer ready to dig in.
Elsewhere, Scotiabank has an appetite for its own shares, while Montréal-based space firm NorthStar had a very rough market debut; here’s to a smoother start to your week.
Let’s get into it.
MARKETS 📈
All data as of Friday’s market close at 4:00 PM ET
Recap: Weaker-than-expected U.S. jobs data reduced expectations for an October Fed hike and lifted stocks, with the TSX gaining +1.0% as materials and industrials led. Oil fell after G7 countries agreed to release 100 million barrels of diesel and crude from emergency reserves following pressure from the Trump administration, which had threatened a U.S. diesel export ban.
BRIEF OF THE DAY 💡
Suncor Sells Newfoundland Oil Stakes for up to US$1.1B
The deal: Calgary-based oil producer and refiner Suncor Energy (TSX:SU) agreed to sell its stakes in three oil projects off Newfoundland’s coast to U.K. producer Ithaca Energy for US$860M (~$1.2B) upfront, plus up to US$250M (~$356M) tied to future oil prices.
The assets: The sale covers Suncor’s interests in Terra Nova (48%), White Rose (40%), and West White Rose (38.6%). It will retain its stakes in two other offshore Newfoundland projects: Hibernia and Hebron.
From Suncor’s POV: One of Canada’s largest integrated energy companies, Suncor calls these Newfoundland assets non-core as it aims to concentrate on its Alberta oil sands and refining business.
From Ithaca’s POV: Its first international acquisition provides a base for future expansion beyond the U.K. North Sea, in a region suited for its offshore expertise. Ithaca plans to take over running Terra Nova; Calgary-based Cenovus will continue operating White Rose and West White Rose.
The future costs: Ithaca would assume Suncor’s spending obligations for these projects. These include $500M in required work on Terra Nova’s oil wells starting in 2027. It would also assume an estimated $1.4B in eventual closure costs and lease obligations.
💼 Why this matters: With Brent crude above US$100 a barrel, the deal signals overseas appetite for Canadian oil assets. Ithaca cites the region’s tax and regulatory environment as part of the appeal. The question now is whether other foreign buyers follow with Canadian energy deals of their own.
HEADLINE RECAP 📰
In Canada
Carney launches 13-member national AI council to advise on AI adoption, infrastructure, competitiveness, and safety (TL)
Carney reportedly plans Turkey visit, with trade, energy, and defence talks in focus (RTRS)
Tesla Model 3 sales rise in Canada after Carney deal had lowered tariffs on Chinese EV imports (BBG)
Bank of Canada unveils details of new Prima model for forecasting inflation and setting interest rates (TL)
Quebec business leaders urge its next government to target 3% real GDP growth, $1T economy by 2033, and ease regulatory burden (G&M)
Montréal space-monitoring firm NorthStar plunges -42% in public market debut after SPAC merger (BBG)
Ex-Vanguard exec files to launch Canada’s first investment dealer focused solely on prediction markets (BK)
DEAL FLOW 🇨🇦 (Canadian parties highlighted)
M&A & Investments
Suncor Energy (TSX:SU) agreed to sell its stakes in Newfoundland’s Terra Nova (48%), White Rose (40%), and West White Rose (38.6%) offshore oil projects to U.K. producer Ithaca Energy for US$860M (~$1.2B) upfront, plus up to US$250M (~$356M) tied to oil prices.
Scotiabank advised Ithaca Energy.
Lifting Solutions: The Edmonton-based oilfield equipment maker was acquired by Flowco, a Houston-based energy technology & oilfield services firm, for $159M plus an earnout; sellers include Calgary-based, energy-focused PE firm ARC Financial.
TPH&Co, the energy business of Perella Weinberg Partners, served as exclusive financial advisor to Lifting Solutions.
Volaris Group, part of Constellation Software (TSX:CSU), acquired Teknisa, a Brazilian provider of software for foodservice operators and food retailers.
Wesbell Communications: The Mississauga-based telecom infrastructure services firm was acquired by TXO, a U.K.-based telecom network hardware & asset management services provider backed by TowerBrook Capital Partners.
ECM
Suncor Energy (TSX:SU) increased its planned monthly share repurchases by 50% to $750M from $500M, beginning in October.
Scotiabank (TSX:BNS) received approval to increase its share-buyback limit to 40M shares (~$5.2B at Friday’s close / ~3.25% of shares outstanding) from 15M shares; the program expires in ~6 months.
DCM & Credit
Province of British Columbia: The province added $600M to its existing 4.60% bond issue due 2057, increasing total outstanding to $8.6B.
Scotiabank was lead manager, with BMO and RBC as joint lead managers.
BAY STREET TRIVIA 🧠
FOR THE GROUP CHAT 💬
