Yitzhak Tshuva's Delek Group Acquires Canadian Oil Assets for Over $1 Billion

Israeli businessman Yitzhak Tshuva's energy company Ithaca, a subsidiary of Delek Group, is significantly expanding its presence in the Canadian energy market with a major acquisition. Ithaca has signed an agreement to purchase producing oil assets from Suncor Energy in Canada for a deal potentially exceeding $1 billion. The transaction includes an initial cash payment of $860 million, with an additional $250 million contingent on oil prices over 27 months.

Analysts are particularly interested in the projected cash flow from the acquired assets, which are estimated to generate approximately $235 million in adjusted EBITDAX in the 12 months ending June 2026. This suggests Ithaca is acquiring an operation that is already profitable, even before anticipated production increases. The company expects the deal to immediately boost its EBITDAX, free cash flow, and dividend per share upon completion.

For Delek Group, which benefits from Ithaca's distributions, this acquisition represents a potential increase in cash flow from its subsidiary, enabling higher dividend payouts to its shareholders, including Tshuva, who is the controlling shareholder. The deal encompasses about 103 million barrels of proven and probable oil equivalent reserves (P2 level), equating to an average acquisition cost of roughly $8 per barrel. Additionally, Ithaca gains access to approximately 180 million barrels of resources with development potential.

Following the acquisition, Ithaca anticipates adding an average of 30,000 barrels per day between 2027 and 2031, with production expected to reach 35,000-40,000 barrels per day by 2029. Consequently, Ithaca plans to raise its medium-term production forecast to 140,000-150,000 barrels per day. This move aligns with Tshuva's strategy to transform Delek Group into an international energy conglomerate, complementing its existing Canadian operations through InPlay Oil in Alberta.

Idan Wells, CEO of Delek Group, described the acquisition as a "significant milestone" for Ithaca, emphasizing the "opportunistic average price of about $8 per barrel." He stated that the deal is expected to strengthen cash flow and serve as a major growth engine. If Ithaca's projections materialize, Tshuva stands to benefit from both an increase in Delek Group's stake value in Ithaca and larger dividend flows from Ithaca to the group, which will ultimately benefit Delek's own shareholders.