Suncor Energy (TSX:SU) has a potential opportunity to make further purchases in Alberta's oilsands if foreign multinationals continue to exit the sector, the oil and gas company's chief executive said Thursday.
Suncor feels no pressure to buy but is watching closely for opportunities and has the financial strength to act, Suncor CEO Steve Williams said Thursday on a quarterly conference call with analysts.
Williams said he doesn't think the "exodus" from the Alberta oilsands by big international companies "is quite finished yet" and there are "known sellers out there if you look."
"And so, there may be some incredible opportunities because I don't think there are many companies out there now that have a balance sheet capable of purchase," Williams said.
Suncor said in its quarterly report that completion of construction at the Fort Hills oilsands mine, estimated to cost $16.5 billion to $17 billion, and the $14-billion East Coast Hebron offshore project will free up its capital.
Both projects are expecting first production by year-end.
Suncor increased its ownership of Syncrude Canada last year to over 53 per cent in part by buying American firm Murphy Oil's five per cent interest. It also bought Canadian Oil Sands' 37 per cent stake and already had a 12 per cent stake.
Other foreign companies selling oilsands assets in the past year include Americans Marathon Oil and ConocoPhillips, Norway's Statoil and British-Dutch oil giant Royal Dutch Shell.
Williams made his comments before the company's annual shareholders meeting in Calgary and after the company released its first-quarter financial results late Wednesday.
Its first-quarter net earnings rose to $1.35 billion, compared with $257 million a year earlier.
The company said it may purchase up to $2 billion worth of its shares this year, but such buybacks aren't mandatory.