Suncor, Petro-Canada Complete Merger
Suncor has completed its merger with Petro-Canada on August 1, the "new" Suncor Energy will begin trading on the New York Stock Exchange today and on the Toronto Stock Exchange on August 7.
"This is an important milestone for Suncor and for Canada," said Rick George, president and chief executive officer. "Bringing together these two great success stories creates the premier Canadian energy company with the assets, people and financial strength to take on the global competition. This is the start of an exciting journey."
Suncor Energy will be Canada's largest energy company and the fifth largest North American-based energy company by market value when it opens trading. The new Suncor combines a leading position in Canada's oil sands with complementary operations in refining and marketing, North American natural gas production and conventional production internationally and offshore East Coast Canada. The company also holds a significant position in Canada's emerging renewable energy industry with wind power projects and biofuels production.
While the company will operate corporately and trade under the Suncor Energy name, it will maintain the trusted Petro-Canada brand for its refined products and national retail network, and as a proud partner of the 2010 Olympic and Paralympic Winter Games.
A strong foundation for responsible growth
The combined company's current upstream production is approximately 710,000 barrels of oil equivalent per day (boe/d). Existing upstream production is supported by 7.5 billion barrels of proved and probable reserves, and an additional 19 billion barrels of contingent resources to support future development.
Plans for future development and Suncor's next stage of growth projects will be determined based on projected rates of return, near-term cash flow and risk profile. Efficiencies resulting from the merger are expected to contribute annual reductions of $1 billion in capital spending, in addition to expected annual savings of $300 million in operational expenditures.
"We will move quickly on getting the right people focused on the right opportunities," said George. "In the near term, the focus will be very much on the people that are the foundation of this company and ensuring safe, reliable and environmentally responsible operations. By the end of the year, we expect to provide details about our strategy going forward."
"Through this merger, we have created expectations with Canadians, Albertans, our shareholders, our community partners and stakeholders and, of course, ourselves. As of today, it will be our responsibility to meet those expectations head on."
Stock exchange listings and dividends
Effective August 3, 2009, the common shares of Petro-Canada and the former Suncor will be delisted from the New York Stock Exchange and the common shares of the new Suncor Energy Inc. will begin trading under the symbol "SU". Effective August 7, 2009, the common shares of Petro-Canada and the former Suncor will be delisted from the Toronto Stock Exchange and the common shares of the new Suncor Energy Inc. will begin trading under the symbol "SU".
Suncor's Board of Directors has approved a quarterly dividend of $0.10 per share on its common shares, payable September 25, 2009, to shareholders of record at the close of business on September 4, 2009.
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