Delek-backed Ithaca buys into Canadian oil fields for up to $1.11 billion
Ithaca Energy will acquire stakes in Terra Nova, White Rose and adjacent fields, with expected production of 30,000 barrels per day between 2027 and 2031.
Ithaca Energy has signed a major deal in Canada, agreeing to acquire a portfolio of offshore oil assets from Suncor Energy for an initial consideration of $860 million.
According to a report by Delek Group, which owns a 50.5% stake in Ithaca, the consideration will be paid in cash when the deal closes. The total price could rise to as much as $1.11 billion if oil prices exceed a threshold specified in the agreement over a 27-month period.
The acquisition will be financed through Ithaca’s existing credit facilities, supplemented by local credit facilities in Canada. Any additional consideration that becomes payable will be funded from the company’s operating cash flow.
The assets are located in the shallow waters off Newfoundland and Labrador in eastern Canada. Ithaca expects the acquired portfolio to produce approximately 30,000 barrels of oil per day between 2027 and 2031. Based on Ithaca’s calculations, the transaction represents a price of approximately $8 per barrel of expected production.
The acquisition includes a 48% stake in the Terra Nova oil field, where Ithaca will become the operator; a 40% stake in the White Rose field, where it will not be the operator; and an additional 38% stake in fields adjacent to White Rose, where Ithaca will also not serve as operator. Production from the latter assets is expected to begin later this year.
Ithaca Energy is listed in London and has a market capitalization of approximately £4.7 billion ($6.2 billion, NIS 19.3 billion). The company went public at a valuation of £2.5 billion. Its shares have risen 71% since the beginning of the year.
The Canadian acquisition is the latest in a series of major expansion deals by Ithaca. In April 2024, the company signed an agreement to acquire nearly all of Italian energy giant Eni’s North Sea oil and gas assets for approximately $938 million in shares. The transaction was designed to significantly expand Ithaca’s operations, with the combined company expected to produce more than 100,000 barrels of oil equivalent per day.
