Suncor agrees to sell offshore stakes to Ithaca, lifts buyback to C$750M a month

Suncor Energy agreed on October 4, 2026 to sell its Terra Nova, White Rose and West White Rose offshore stakes to Ithaca Energy for C$1.2 billion (US$860 million) in upfront cash and raised its monthly share buyback to C$750 million from C$500 million.

Suncor Energy is stepping back from Canada's East Coast offshore and handing the cash to shareholders faster. On Sunday evening the Calgary-based company said it had signed a definitive agreement to sell its stakes in the Terra Nova, White Rose and West White Rose oil projects to UK producer Ithaca Energy for C$1.2 billion (US$860 million) in upfront cash, and at the same time lifted its share repurchases from C$500 million to C$750 million a month starting in October.

The sale has not closed. Suncor expects completion in early 2027, subject to closing conditions, regulatory approvals and partner consents; Ithaca is targeting the first half of 2027.

What Suncor is selling, and what it keeps

The package is Suncor's 48% operated interest in Terra Nova, its 40% interest in White Rose and its 38.6% interest in West White Rose, all in shallow water off Newfoundland and Labrador. On top of the upfront cash, Suncor can collect a contingent payment of up to C$350 million (US$250 million) tied to future oil prices. The deal carries an effective date of July 1, 2026.

The liabilities may matter as much as the price. Suncor said Ithaca will assume the investment commitments and all future liabilities tied to the assets, including a C$500 million regulatory well compliance program at Terra Nova starting in 2027 and total estimated abandonment and lease liabilities of C$1.4 billion. Ithaca intends to take over as operator of Terra Nova. Suncor keeps its interests in the Hebron and Hibernia fields.

Chief Executive Rich Kruger framed the sale as portfolio focus: "This transaction further focuses our efforts on opportunities that generate the greatest long-term shareholder value," he said, adding that Suncor is aligning around its oil sands base. The company said its 2026 Investor Day targets - growing normalized free funds flow by C$2 billion and cutting its WTI breakeven by US$5 a barrel through 2028 - are unchanged.

A bigger monthly buyback

The repurchase change takes effect immediately rather than at closing. Under its normal course issuer bid, Suncor now plans to buy back C$750 million of stock per month, up from C$500 million - an extra C$250 million each month. Suncor's release did not tie the higher pace to the sale proceeds, which are not due until completion.

Why Ithaca wants the barrels

For Ithaca, a London-listed North Sea producer, this is its first acquisition outside the UK. In its own regulatory announcement, Ithaca said the assets add about 103 million barrels of oil equivalent of proved plus probable reserves, an acquisition cost of roughly US$8 per barrel of oil equivalent, and should average about 30,000 barrels of oil equivalent per day of net production from 2027 through 2031, peaking at 35,000 to 40,000 a day in 2029 as West White Rose ramps up. First production from West White Rose is expected in the fourth quarter of 2026. Cenovus operates White Rose.

Ithaca put the assets' adjusted EBITDAX at about US$235 million for the 12 months to June 30, 2026, a period it described as one of low production, before output ramps up following refurbishment work and ahead of the West White Rose start-up. It plans to fund the upfront payment with cash on hand, its borrowing base facility and secured financing in Canada, and any contingent payment from free cash flow. The contingent amount depends on Brent averaging above set reference prices - US$80 a barrel for the year to June 2027, US$74 for the following year and US$73 for the final quarter to September 2028 - with a 50% sharing factor.

Ithaca's announcement also sets out the deal's guardrails: approval under Canada's Competition Act is required, the outside date for completion is December 31, 2027, and the purchasing parties would owe a US$50 million break fee if the agreement is terminated in certain circumstances, such as an uncured breach on their side.