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FILE PHOTO: FILE PHOTO: The Suncor Energy logo is seen at their head office in Calgary, Alberta, Canada, April 17, 2019. REUTERS/Chris Wattie/File Photo (Reuters) – Oil producer EnQuest agreed to buy Suncor’s 27% stake in the Golden Eagle fields for $325 million, roughly equivalent to its market capitalisation, on the back of a planned debt refinancing and equity raise, it said on Thursday. The company, which has net debt of around $1.3 billion, said the deal would add around 10,000 barrels of oil equivalent per day to its output and $100 million in net present value, meaning the difference between projected earnings and costs. Golden Eagle, operated by Chinese-owned oil and gas firm CNOOC, would earn EnQuest around $13 million a month, Chief Financial Officer Jonathan Swinney said. EnQuest can deduct money earned between January and the closing of the deal, expected by the end of the third quarter pending EnQuest reaching a refinancing package with its banks, from the purchase price. EnQuest has accumulated so-called tax losses in Britain amounting to around $3 billion, which it can offset against future profits, making additional production an attractive tax proposition. Shareholder approval for the acquisition is required, but Chief […]
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