Suncor Energy (NYSE: SU) (TSX: SU) has inked a deal to buy an additional 21.3% working interest in the Fort Hills Project from Teck Resources Limited, in a deal worth $1 billion.
With the latest buyout, Suncor will hold a majority share of 75.4% in the project. The remaining 24.6% interest will be held by the existing French partner, TotalEnergies EP Canada Ltd.
Suncor interim president and CEO Kris Smith stated, “The acquisition of an additional interest in Fort Hills meets our return objectives, builds upon our strategy to optimize our portfolio around our core operated assets, and underscores Suncor’s confidence in the long-term value of the Fort Hills project.”
The deal, subject to certain approvals, is expected to close in the first quarter of 2023. The deal will be financed through the ongoing asset sales proceeds at Suncor.
Is Suncor a Buy or Sell?
As per TipRanks, analysts are cautiously optimistic about Suncor Energy stock and have a Moderate Buy consensus rating, which is based on seven Buys and five Holds. Suncor Energy’s average price forecast of $40.15 implies 19.92% upside potential. Suncor is scheduled to release its Q3 results next week on November 2.
Notably, SU stock has a top-notch Smart Score of a “Perfect 10” on TipRanks, indicating that the stock has strong potential to outperform market expectations.
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