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Suncor Energy and Petro-Canada join forces to create the premier Canadian energy company, I x, w p4 Y6 }7 [
The combination of Suncor Energy and Petro-Canada creates a! B8 `6 Q9 m; b7 @! i' g) d" Z
globally-competitive, Canadian-based integrated energy company6 e, `5 ]) F2 Q' {2 x0 F: N9 g
with a balanced portfolio of high quality assets, a strong
: B. ^& r* m/ w) T/ Ubalance sheet and significant growth prospects. * M4 [& M! o2 J: F7 i
All dollar figures in this news release are Canadian unless otherwise noted. This document makes reference to barrels of oil equivalent (boe). A boe conversion ratio of six thousand cubic feet of natural gas: one barrel of crude oil is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Accordingly, boe measures may be misleading, particularly if used in isolation. v( @# Q O! \8 ]/ T: h
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CALGARY, ALBERTA--(Marketwire - March 23, 2009) - Suncor Energy Inc. ("Suncor") (TSX:SU) (NYSE:SU) and Petro-Canada ("Petro-Canada") (TSX:PCA) (NYSE:PCZ) today announced that they have agreed to merge the two companies. Upon completion of the transaction, the parties have agreed the combined entity will operate corporately and trade under the Suncor name, while maintaining the strong brand presence and customer loyalty of Petro-Canada in refined products.$ B) {2 r+ P$ e X/ C# J) d
"This merger creates a made-in-Canada energy leader with the assets, cost structure and financial strength to compete globally," said Rick George, who is president and chief executive officer of Suncor and who will assume the same role with the merged entity. "The combined portfolio boasts the largest oil sands resource position, a strong Canadian downstream brand, solid conventional exploration and production assets, and low-cost production from Canada's east coast and internationally." . B: I% T7 `) L2 [! m6 ]' S
Under the terms of the Arrangement Agreement entered into between Suncor and Petro-Canada, the proposed merger will be effected by way of a Plan of Arrangement completed under the Canada Business Corporations Act. It will feature a common share exchange through which Petro-Canada common shareholders will effectively receive 1.28 common shares of the merged company for each common share of Petro-Canada they own and each Suncor common shareholder will receive one common share of the merged company for each common share of Suncor they own. The exchange ratio represents an approximate 25% premium for the Petro-Canada shares to the 30-day weighted-average trading price of such shares. On completion of the proposed transaction, Suncor's existing shareholders will own approximately 60 per cent and Petro-Canada shareholders will own approximately 40 per cent of the merged company. ( V) V- X! [) X
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