Delek's Ithaca Energy Buys Canadian Oil Assets for $860 Million

Ithaca Energy, an energy company controlled by Israel's Delek Group and ENI, is expanding its operations beyond the North Sea with the acquisition of producing offshore oil assets in Canada. The deal, with Canadian energy company Suncor, is for a portfolio located off the coast of Newfoundland and Labrador. This marks Ithaca's first international transaction outside the British North Sea and signifies a new phase in its growth strategy.

The acquired assets include operational stakes in the Terra Nova field (48%), White Rose Existing Lands (40%), and White Rose Growth Lands (38.6%), which encompasses the West White Rose project slated for production in the fourth quarter of 2026. Ithaca will pay $860 million in cash upon closing, with potential additional contingent consideration of up to $250 million over 27 months based on oil prices. The company plans to finance the acquisition through its existing reserve-based lending facility and local Canadian financing.

This transaction adds approximately 103 million barrels of proven and probable reserves (2P) to Ithaca's portfolio at an average cost of about $8 per barrel, along with an additional 180 million barrels of potential development resources. The acquisition is expected to boost Ithaca's production by around 30,000 barrels of oil equivalent per day between 2027 and 2031, with the purchased assets potentially reaching 35,000 to 40,000 barrels per day in 2029. Consequently, Ithaca anticipates revising its medium-term production forecast upward to approximately 140,000 to 150,000 barrels of oil equivalent per day.

The acquired assets are projected to generate approximately $235 million in adjusted EBITDAX for the twelve months ending June 2026, even before planned upgrades and the commencement of West White Rose production. Ithaca estimates the deal will immediately contribute to its adjusted EBITDAX, free cash flow, and dividend per share. The acquisition follows a strong year for Ithaca, which joined the London Stock Exchange's flagship index and saw a 48% production increase in 2025.

Idan Welles, CEO of Delek Group, stated that this is a significant milestone for Ithaca, opening a new chapter of growth outside the North Sea and acquiring a quality portfolio of producing assets at an opportunistic price. He also noted that the deal deepens Delek's involvement in the Canadian energy market. The transaction is expected to close in the first half of 2027, with an effective date of July 1, 2026, pending regulatory and governmental approvals in Canada.