Oil and gas consolidation 2021

[vengie]

Hah.
I knew something weird was going on with them based on the actions of many I deal with there...
My hunch was a sale.
But in a roundabout way I guess they kind of are.

[killramos]

I mean any company that hockey stick graphs their production for the year to exit 25% higher is up to something.

I’m guessing this particular transaction was not their first choice of outcome.

[ExtraSlow]

I thought I understood the concept of SPAC in the tech space, and I thought I understood Oil and Gas transactions, but I can't really wrap my head around this combination of the two. Probably a "me" problem.

[ExtraSlow]

Hey, this is the opposite of consolidation.

Pouyanne noted that the oil sands assets the company operates in Canada are expected to generate some $1.5 billion in cash flow this year.

The French supermajor recently issued an update on its strategy for the future, noting how its focus on low-cost oil and gas projects and a strong expansion of its LNG operations have put the company in a favorable position in the current energy market context.

TotalEnergies also boasted that its low breakeven cost per barrel of oil, at $25, has enabled it to generate additional cash flow from every barrel it produces, to the tune of $15 billion as of this year.

Yet a lot of TotalEnergies’ plans for the future have to do with electricity and more specifically renewable electricity, in a marked departure from what has been its core business for decades. The French supermajor is among the most active “transformers” in the energy industry, eyeing to become one of the five biggest renewable energy providers in the world.

In line with its transformational plans, TotalEnergies has been in the process of pulling out of Canada. In 2020, the company took an impairment of $7 billion based on its estimates of oil prices in the period 2020-2023. The company also said that year it expected oil demand to peak by 2030.

https://oilprice.com/Latest-Energy-N...ategy.amp.html

[ThePenIsMightier]

Holy fuck!
Don't they still own about 20% of Fort Hills?! This should radically complicate that partnership (even though - dealing with French Refiners as partners in an oilsands mine hasn't been easy).

[ExtraSlow]

Dealing with a smaller public company won't be worse than the French.

I do think it's fascinating business strategy to spin off assets that generate 1.5b profit per year.

[mr2mike]

French refiners. I'm imagining how to adapt a Citroën to a Fort Mac Lifestyle.

[ExtraSlow]

The 2cv is good on rough roads. Something about a basket of ouefffs and plowing a farmer.

[killramos]

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Dealing with a smaller public company won't be worse than the French.

I do think it's fascinating business strategy to spin off assets that generate 1.5b profit per year.

But think of the carbons they are no longer responsible for.

Total can release an ESG report showing they have lowered their emissions by 40%* YOY! Great success!

*whatever the made up number of carbons is

Becoming a smaller public will just make it easier for Suncor to go hostile and absorb.

[suntan]

This is a good thing for Alberta.

[ThePenIsMightier]

Also, it sounds like FH is not performing as anticipated. Ore grades might be way lower than predicted and somehow releasing H2S during primary crushing! That's unheard-of!

[ExtraSlow]

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This is a good thing for Alberta.

Accurate. Fuck off euros.

[killramos]

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Also, it sounds like FH is not performing as anticipated. Ore grades might be way lower than predicted and somehow releasing H2S during primary crushing! That's unheard-of!

While this may or may not be true. I don’t think this announcement is based in any rational business thinking.

[zechs]

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and somehow releasing H2S during primary crushing! That's unheard-of!

Oh god, please no. I'm not going back there ever again because of idiots in management. You can't make me (flashbacks to literally every single oilsands site).

[troyl]

Calgary, Alberta (October 26, 2022) – Suncor Energy (TSX: SU) (NYSE: SU) today announced that it
has agreed to purchase an additional 21.3% working interest in the Fort Hills Project and associated
sales and logistics agreements from Teck Resources Limited, for consideration of $1 billion. Upon
closing, Suncor’s aggregate share in the project will increase to 75.4%. The acquisition will be funded
by cash from asset sale processes currently underway and the company remains on track with its
previously articulated capital allocation framework.


https://sustainability-prd-cdn.sunco...256.1666831160

[ExtraSlow]

Makes good sense. Basically as good as a share buyback. Zero risk.

[ThePenIsMightier]

$1 billion for a 21% stake in a project that cost over $17 billion to build?!?
Fuck me. Is Teck going to take all this cash and quickly bang off their own Frontier mine, finally?
LoL! It's a good thing actual mining is making Teck money.

[ExtraSlow]

Spartan Delta is doing so good they might stop doing it?

https://boereport.com/2022/11/30/spa...-for-2023/amp/
Need a power point engineer to explain this to me.

[ThePenIsMightier]

That article makes me want to set new paradigms in delivering synergy, but moreso...
SHORT!!

[mr2mike]

They're predicting not $110 oil but hoping to sell with the prospect of $120 oil.