Ladies and gentlemen, thank you for standing by. Welcome to the Suncor's offer for Canadian Oil Sands webcast. As a reminder, this conference is being recorded Tuesday, January 5th, 2016. I would now like to turn the conference over to Steve Douglas, Suncor Energy Vice President, Investor Relations. Please go ahead, sir.
Thank you, operator. Good morning and welcome everyone. With me here this morning is Suncor's President and Chief Executive Officer, Steve Williams. As you know, Suncor's offer to acquire all the shares of Canadian Oil Sands Limited expires in less than four days at 6:00 P.M. Mountain Time, 8:00 P.M. Eastern Time this Friday, January the 8th. With that top of mind, we'll take the next few minutes to review the benefits to Canadian Oil Sands shareholders of accepting our offer and the risks we believe of rejecting it. After that, we'll be open for questions. During the call and throughout the offer period, you can direct questions to us by emailing offer@suncor.com. That's O-F-F-E-R @suncor.com. You can review the complete offer materials filed on SEDAR and EDGAR and on our offer website. You can also contact our investor relations department or D.F. King, our information agent.
The contact details are included on the back pages of today's presentation, as well as in yesterday's news release and on our website at suncor.com. Before we begin, I'd like to point out that Suncor's offer to purchase shares of Canadian Oil Sands is being made subject to the terms and conditions set out in Suncor's offer to purchase and takeover bid circular, dated October the 5th, 2015, as varied and amended November 12th and December 3rd, 2015, along with the accompanying offer documents. The information being presented today is qualified in its entirety by reference to the complete text of the offer documents, which should be read carefully before decisions are made with respect to the offer. This presentation should also be viewed and considered in conjunction with the accompanying slide deck, which is available on Suncor's website and can be downloaded.
Please carefully review the advisories at the beginning of the slide deck and in the offer documents, both of which provide important information. This presentation doesn't constitute an offer or a solicitation of an offer to buy or sell securities. Suncor's offer is being made solely by means of the offer documents. Of course, this presentation contains forward-looking statements and forward-looking information. Forward-looking statements and information are not guarantees of future performance, and they do involve a number of risks and uncertainties. Actual performance may differ materially from what is presented by such forward-looking statements and information. This presentation also includes references to free cash flow, which is a non-GAAP measure, as described on slide four. With that, I will turn the call over to Steve Williams.
Thank you, Steve. Good morning, everyone, and thank you for joining us this morning. As Steve mentioned, our offer expires in four days, which means you must act now if you wish to accept our offer. Without a significant show of support by Canadian Oil Sands shareholders tendering to our offer, we currently have no intention to extend. That means Canadian Oil Sands shareholders who haven't already tendered their shares have a very important decision to make and precious little time to act. The purpose of this call is to clear up some of the misinformation you've been receiving from Canadian Oil Sands' board and management and answer any final questions you might have about our offer or about the value we believe we can create for you as a new Suncor shareholder and how that compares to the prospects for Canadian Oil Sands on a standalone basis.
Our goal is for you to leave this call feeling fully informed and confident in tendering your shares as soon as possible and before the deadline this Friday. First, let me remind you of the significant and immediate value in our offer. Canadian Oil Sands shareholders will receive 0.25 Suncor shares for each Canadian Oil Sands share. In the letter it filed on Christmas Eve, the Canadian Oil Sands board incorrectly claimed that its shares are worth more than that. The market is saying otherwise. Based on yesterday's close, our offer equates to CAD 8.82 per Canadian Oil Sands share, which represents an implied premium of 42% to the pre-offer price of CAD 6.19 per share. As an owner of Canada's leading integrating energy company, you will also receive an immediate 45% increase in the amount of dividends you receive.
With a larger ownership position in Syncrude, we intend to devote the resources necessary to work with our partners to achieve real and lasting operational improvements at Syncrude. As a Suncor shareholder, you would get the benefits of those gains as well. These are obviously tough times for energy companies, but we sincerely believe that Suncor can weather these times better than our peers and much better than Canadian Oil Sands. We have a rock-solid balance sheet and have proven that we can make money and create shareholder value when oil prices rise and when they don't. I think the numbers are clear. Over the five years leading up to our October 5th offer, Suncor increased its dividend by 190% with a total shareholder return of more than 15%.
Facing the exact same market conditions, Canadian Oil Sands cut its dividend by 90% and its shareholders endured a negative total return of 69% during the period. Premium value, a significant dividend increase, a rock-solid balance sheet, a track record of strong operational performance, and an ongoing stake in Canada's leading integrated energy company. That's what you get with Suncor's offer. The Canadian Oil Sands board and management are saying that shareholders would be better off if Suncor went away. Let's put aside the rhetoric for a moment and review the facts. First of all, if our offer is rejected, you can expect the price of your shares to drop sharply. As a starting point, we believe it's fair to assume that the price would return to its pre-offer level of CAD 6.19 per share. That's a decline of more than 25% from where it closed December 31st.
Assuming the Canadian Oil Sands is correct when it says that its share price is 98% correlated to the price of oil, your shares could drop at a further 20% below their pre-offer level, given the approximate 20% decline in oil prices we've experienced over the past three months since we originally made our offer. That implies a Canadian Oil Sands share price of approximately CAD 5, representing a drop of almost 40% from where Canadian Oil Sands shares closed on December 31st, with limited prospects of bouncing back anytime soon. Of course, we can't know for certain what will happen to the Canadian Oil Sands shares if our offer goes away. What we do know is what has happened to other companies in similar circumstances.
Pacific Exploration & Production Corp, formerly known as Pacific Rubiales Energy Corp, is trading approximately 68% lower since a bid for its shares terminated on July 8th last year. STEP Energy Services Ltd. is trading approximately 44% lower since a proposed offer from Total Energy Services terminated September 23 last year. K+S Potash is trading approximately 24% lower since the termination of an offer from PotashCorp October 4th last year. The choice is yours. You can accept Suncor's offer and capture a significant premium while retaining Oil Sands exposure through Canada's leading integrated energy company or you can absorb an immediate share price decline, possibly of 40% or more, and hope for an oil price recovery the market doesn't expect anytime soon. That is the potential immediate impact. Let's consider Canadian Oil Sands' longer-term prospects.
Using the current oil price outlook, we're talking about the market's forecast, not Suncor's, it could take many years before Canadian Oil Sands can afford to fund a meaningful dividend increase. This is because Canadian Oil Sands has said, and wisely to be frank in our view, that its priority is to use any positive free cash flow to pay down CAD 1 billion to CAD 2 billion of its current debt load. With Canadian Oil Sands' credit profile already just one notch above junk status, a failure to prioritize cash to pay down debt would only put the company further behind the eight ball. Of course, Canadian Oil Sands will tell you that it's poised to benefit when prices turn. Many analysts believe it could be years before prices recover, and oil futures suggest we won't see a return to $55 WTI until at least 2020.
These aren't our predictions, but actual contracts which indicate the market's view on pricing. Even for long-term investors, that's a long time to wait. Even then, Canadian Oil Sands shareholders would only truly benefit from rising oil prices if Syncrude is able to sort out its production and cost issues. Naturally, Canadian Oil Sands has insisted that things are getting better at Syncrude. Unfortunately, this has become something of an annual tradition for Canadian Oil Sands. For the past eight years, Canadian Oil Sands has overpromised and under-delivered, and the pattern continues, as you can see very plainly on this slide. Just last month, Canadian Oil Sands proclaimed, and I quote, "A new era of lower cost operations for Syncrude." That was December 1st. A week later, on December 8th, Syncrude experienced yet another operational setback that will cost it at least 40 days of reduced production.
Make no mistake, this was not planned maintenance as Canadian Oil Sands has implied. No one plans maintenance in Fort McMurray at three days' notice in the dead of winter over Christmas. It was an emergency shutdown, and we think shareholders deserve the truth on this latest operational problem. Let's turn now to the claim that Canadian Oil Sands made in November to the Alberta Securities Commission about having four highly credible parties apparently willing to make superior offers. Finally, yesterday, Canadian Oil Sands acknowledged what we suspected all along. They have no superior offer. After all this time, all Canadian Oil Sands is offering is hope for a price recovery that the market doesn't see coming anytime soon, and operational improvements at Syncrude, for which there unfortunately is simply no evidence.
Some of you may still be wondering if we will increase our offer, let me be clear and frank. We believe our offer is full and fair, we have no plans whatsoever to do so. The choice is clear. Tender your shares and receive significant upfront premium, an immediate dividend increase, and ownership in Canada's leading integrated energy company, a company, by the way, that has demonstrated it can create value when oil prices are low and when they rise, and that has a proven track record of driving industry leading operational performance at large, complex oil sands operation. You can stick with Canadian Oil Sands in this lower for even longer oil price environment. A heavily indebted company that is pinning its hope on an oil price recovery and improved operational results from its one underperforming asset over which it has no control.
As you've heard me say repeatedly, hope is not a strategy. As a Canadian Oil Sands shareholder, doing enough is the same as rejecting our offer. If you wish to protect the value of your investment and receive the benefits of our offer, it's vitally important that you take action immediately. Call your broker today, go to our website, call our information agent, D.F. King, at the number listed on our website and in all of our materials. Tender your shares before 6:00 P.M. Mountain Time or 8:00 P.M. Eastern Time this Friday, January the 8th. In fact, we recommend that you get your instructions to your broker immediately to ensure that they are processed in time. We remind shareholders that certain brokers and intermediaries will have tender deadlines today or tomorrow. Please act now. Thank you very much for your time and attention.
We'll now be pleased to take your questions. Operator?
Thank you, sir. Ladies and gentlemen, if you'd like to register a question, please press the one followed by the four on your telephone. You will hear a three-tone prompt to acknowledge your request. If your question has been answered and you'd like to withdraw your registration, please press the one followed by the three. If you're using a speakerphone, please lift your handset before entering your request. One moment please for the first question.
Operator, I do have a question here that's come in online. While we're waiting for questions over the phone, I'll take the first question online. The first question I've received is, can you explain why Suncor is willing to invest substantially more per producing barrel to develop Fort Hills while taking on more operational risk than what Suncor is willing to pay for a producing barrel at Syncrude? It's a great question, because it is a bit of a misnomer. We're actually offering significantly more for the ownership stake in Syncrude than we did to purchase the extra 10% in Fort Hills last fall. The current offer equates to about CAD 70,000 per flowing barrel at Syncrude, that's versus CAD 56,000 per flowing barrel in the Fort Hills transaction.
However, it is difficult to compare these two transactions on a cost per flowing barrel basis because Fort Hills produces high-quality bitumen, or it will when it's operational, and Syncrude produces synthetic crude oil. We value an asset on its free cash flow profile. Fort Hills is a brand-new asset with operating costs and sustaining capital costs expected to be a lot lower than those at Syncrude. Depending on the assumptions you make, Fort Hills margins and free cash flow could well exceed Syncrude's. We think both offers are completely fair and market-based. Operator, do you have questions?
As a reminder, ladies and gentlemen, please press the one followed by the four to register for a question. Our next question comes from the line of Neil Mehta. Please go ahead.
Hi. Good morning. Just wanted to ask if you guys, you've noted the futures prices are about $55 for WTI. What exactly is your view on long-term pricing in making this bid? Obviously, it's more positive and constructive than futures pricing. Just wanted to get a sense, what world do you see in making this bid for COS?
We plan for all circumstances. Let me talk first in terms of what we do in Suncor's business. We don't bet the company on crude prices. We plan for all circumstances. Our strategy has clearly been to be the low-cost operator, which we currently are. If you look at our operations in oil sands, our average, and these numbers are approximate because we haven't audited last year's numbers yet, but approximately our cash operating costs for our mixed basket of products was about CAD 28, in the very low $20. We position the company to be able to be cash flow positive at very low crude oil prices.
Of course, in a business like the oil sands, the most important factor in operating costs, whilst absolute cash costs are important, what's most important is that you get the reliability of the plant up so that you've got a divisor for what is a business with very high fixed costs. That's the singular big difference between Canadian Oil Sands and Suncor. If you look over the last five years, our reliability has consistently improved, and 2015 will be another improvement year. Canadian Oil Sands have been doing the opposite. In fact, 2015 was their worst year in the last eight-plus years. Rather than just speculating on crude prices, that's not what we're betting the company on. We have a strategy to drive to low cost to position ourselves.
Okay, just a quick follow-up question. You made some good points. I understand your frustration with Canadian Oil Sands' reliability. As you've mentioned, it's almost an annual tradition to have outages, which has affected their operating costs. What practices do you feel you can bring to bear that you wouldn't have already been able to bring to bear as a minority partner in this project?
Yeah.
How moving to 40-odd% will help you bring additional synergies with respect to operating practices. Can you clarify that a little bit?
Yeah, absolutely. I would put reliability broadly under three groupings. One is what I would call the micro-operating level practices, what we would call operational excellence, and Exxon would call Operations Integrity Management. Our systems are very similar, and we have very similar practices. We think we can bring some things there, but that won't be where the breakthrough comes. We think there are two other areas where we can help. One is the engagement of employees. We have a very highly motivated group of employees who are working in that region who feel part of the operational excellence system, and we think we can take some of those practices across and are very happy to do that. It's some of the micro processes and some of the people processes.
Probably the most important one is the fact that we have a very big plant across the road that we can start to cross-connect in. If you have one mine, one upgrader, and then one treating train, you get a certain reliability. As you start to get multiple parallel processes, you can increase the reliability. In Suncor's case, we have two mines and two in situ plants, for example. We rarely short our upgraders of feed. There are opportunities for multiple cross-connections because of the proximity of the plant. Those are synergies which, to be quite frank, are only available to Suncor. Exxon, with all its capability, doesn't have those operating plants it can connect into and get that structural reliability change. I think those are the three areas.
I think it's also, and we've been on the record as saying, you put a certain amount of resource in when you're a 12% owner. You put a very different amount of resource in when you're a 49% shareholder. The sum of all of that is, I believe we can make a material difference to the reliability of Syncrude by committing more resource and working closely with Imperial and Exxon.
That's an excellent answer. Thank you for that detail. Finally, are there any plans then with increased ownership to replace Imperial as the operator? Are you happy to continue that relationship but with more influence?
It's not part of the plan. We are very happy to support Imperial, Exxon, and have a great deal of respect for their operating capability. I think we will be able to offer them some real assistance, and we've started to talk to them about that possibility.
I really appreciate the detail. Thank you very much.
Thank you.
As a reminder, ladies and gentlemen, please press the one followed by the four to register for a question. I'm showing no further questions registered on the phone line, sir.
Okay.
Pardon me. We do have a question from the line of Ben Cubitt. Please go ahead.
Yeah. Hi. Thanks for taking my question. You've talked about requiring substantial support in the bid. Is that able to define that a little bit further, or is it a bit open-ended at this point?
Okay. Yes. I'll give you a few indicators. It won't be actual numbers, but in the first week following. We started the process 10 months ago in March. When we did the bid, and were unable to get engagement from Canadian Oil Sands management or board. In fact, we got summarily dismissed as you've heard. When we went into the November bid, or this October bid, because we've always had the objective of giving the opportunity to the Canadian Oil Sands shareholders to let their views be known. We put two road shows out in parallel, and over that first week, maybe eight days, we think we saw probably 70% of the institutional shareholders. We had overwhelming messages from them. Very disappointed in Canadian Oil Sands management and board, particularly over two things. This overstatement and undelivery was a thorn in the side, but that wasn't the real issue.
The real issue was the disappointment about Canadian Oil Sands not engaging in a conversation with us about the offer. That's remained the case to this day. As we've gone around, we've been seeing some of the bigger shareholders this week again, and we're getting a very clear message that there is not support for an independent Canadian Oil Sands because of those factors. The other thing I would say is I can't give numbers yet because the process is early in engaged. We are slightly ahead of the tender numbers that I would've expected at this stage. Things are looking good, but it's early days. We expect most of the tendering to happen towards the end of this week.
I just wanted to speak or actually get some comments on Seymour Schulich's campaign. He's the only person who's actually identified himself, I think other than maybe Burgundy, that said that they were against the transaction. I think in one of his press releases or comments, he said he had some sort of group of shareholders and the number that rings a bell is something like 28% that are opposed to this. Do you believe that? Is that what you're finding, that three out of 10 shareholders are against, or do you have any comments on his claim that 28% of shareholders are against this?
Let me make a comment. First of all, let me start with, I have tremendous respect for Seymour Schulich. He's got a wonderful track record in terms of his choices and decisions. I make my comments against that background. He is a very different shareholder. He owns approximately 5%, and from all of the information we've got, he is very much in a minority. The best indications I have, and it's not an exact science, is there are not 28% of people in an alignment against this offer. In fact, if you read Schulich's letter, one of the things I read into it was, he wasn't actually against it. He was negotiating price. We have had some conversations with Schulich.
We've got those two very clear messages from the shareholders. Schulich is one, and not everybody has the luxury of having to wait 5 years before any payment comes and not getting paid to wait. Most of us have different expectations from our investments. I respect his view, but don't think it's very reflective of the broader messages we are receiving. The clear message on the counter side, because we're also taking the opportunity to see our own shareholders is, the reputation we've worked very hard to get is one of capital discipline. Don't give up your capital discipline, Steve, as you work through this process. We will not give up that capital discipline as we go through it. The market is telling us. I understand Schulich's argument.
A 40-plus % premium, a 45% dividend, and if you could get it, a warrant on crude price would be tremendous. What has happened, though, since we first made the offer, price of crude was over CAD 50. When we made the bid, it was down to just above CAD 40, and now we're down in the mid-CAD 30s. The operation of the asset is now clearly on record as the worst performance in the last 8 years last year, and deteriorating. Last year ended bad, and 2016 is starting bad. I think you add those together with the clear dissatisfaction with the board and management of Canadian Oil Sands now, and I think our bid is full and fair, and I think the market is telling us that.
At the moment, your minimum support is, I think 66 and two-thirds. You could still effectively control Syncrude by only having 50% of COS and then your own stake. If you couldn't quite get to 66 and two-thirds, are you open to reducing the tender to 50 plus one?
We are looking for 66 and two-thirds. I will watch with very close attention as the tenders come in. We'll make the judgment through the weekend as to whether we believe we will be able to move to closing the deal out. If we don't get enough Canadian Oil Sands shareholders to indicate quite clearly to us that we can progress, we will not go ahead with the deal. I am looking for a very clear message by this Friday that this deal is going to close.
Okay. Yeah. If I could just make, sorry, one last comment, I guess, in support of the deal. I think Seymour Schulich is effectively just playing chicken and I think there's a time and a place for chicken and I don't think this is the time. Chicken only works if you have leverage and other options. I think as everybody's aware, Canadian Oil Sands doesn't have any options. They went through a process. They didn't have any interest. They have nothing else on the table. I think it should be obvious to every shareholder that you guys, Suncor, is not going to bid against themselves, and they're the only offer on the table. The only other alternative is to watch our share price go to, well, I think well south of CAD 6. I think the new level would probably be something well into the fives.
While Seymour Schulich, I also agree, is a very smart man, he's been wrong before. There's a company called Birchcliff several years ago. He had the opportunity to sell it for CAD 12, and he, again, dug his heels in, and it's trading at CAD 4 today. He can be wrong as well. Despite what Canadian Oil Sands is saying about its unique assets, there's a million ways to get exposure to oil, whether it be oil sands specifically or otherwise. If you love oil, you'd be so much better off taking your CAD 9, in this case, from Suncor. If you don't like Suncor, sell your shares and buy another oil company or even oil for that matter. That would create so much more value for COS shareholders than watching our shares go to CAD 5.
Anyway, that was just my comment on that to any other shareholders who are on the fence listening in.
I agree. People will think I've paid you to say all those things, but I do appreciate your honesty. The only thing I would add to that is, I'm not bluffing or playing games here. If we were going to make this bid again, at this stage, it would not be at this level. We've gone through a process. We will honor our bid through till Friday. The world has changed significantly, and I think you're right. It's a very difficult, stark choice to have. Indications are this week that the majority of shareholders are going to support.
Okay, great. Thank you very much.
Our next question comes from the line of Yadullah Hussain . Please go ahead.
Hello. Yes, hi. I wanted to know if your bid does not succeed, would you divest eventually from Syncrude? What would be your strategy?
I don't have any immediate plan to. We have a full-time M&A group in place. Whilst we've given a lot of attention to Canadian Oil Sands, we have been working a number of projects in parallel. I am pleased to be able to say our performance in 2015, whilst the market wasn't very generous to us, it's been another very good year for Suncor as the numbers will show. We stay in a very strong position. If you look over the last five years, what you will see is we're not serial acquirers. We occasionally acquire companies, Petro-Canada being the last big deal we did. We have been divestors of assets at choice times. We sold our gas business just prior to the collapse in gas price. We also sold some other assets through that period.
We've got no fixed plans to immediately divest if the deal doesn't go ahead. You will see us very active in what is a very interesting market, particularly from a buyer's point of view rather than a seller's point of view.
Thank you.
As a reminder, ladies and gentlemen, please press the one followed by the four to register for a question. Our next question comes from the line of Roger Read. Please go ahead with your question.
Hi, good morning. I just wanted to follow up some of these percentages that BNN has accounted for in terms of Seymour Schulich's discussions and interviews. The BNN report claims that Seymour Schulich, and he doesn't put this in his letter, so I'm wondering whether Suncor has some direct information as a result of communications with Mr. Schulich. I assume he's below 5% because you have an offer outstanding, or at least he has not acquired shares during the offering period that would require disclosure on his part as to a specific shareholding. You indicated it was approximately 5%, and I assume you're satisfied with the disclosure he has made so that you believe that to be the correct number?
As far as we know, as I'm sure you know, it's quite difficult to pin down exact holdings by any shareholder just because of disparate filing requirements. We take Mr. Schulich at his word that he has 5%. We certainly are quite confident that there's not 28% aligned with him, though.
Okay. If I might turn around and ask slightly different on the same point. In terms of direct communications, in terms of letters you've received by shareholders that do not support your offer. What is the totality of the number of shares these shareholders hold in percentage?
That's happened.
You said haven't or have supported?
have not supported. They write you a letter, they criticize the offer with respect to value, and they say, "We hold these number of shares representing X% of Canadian Oil Sands, and we don't intend to support your current offer.
Yeah.
I mean, to be frank, at this stage, of course, there is no requirement. It's not a vote, it's a tendering of shares. Other than Schulich, we have had no significant contact from shareholders who are not supporting. That doesn't mean they're not out there. It just means they don't feel the need to talk to us. We have estimates of those numbers as we've looked at the probability of each scenario forward. The net of all of those assumptions is we need to see, and we expect to see shares tendered to us by Friday for us to proceed with this. We have every belief that's going to happen, but you'll see us working hard right the way up until Friday evening.
What I take away from these comments is you have no understanding where this 28% comes from. It's not even whatever communications you have had.
We understand where the 28% comes from. We've spoken to what we believe are the majority of those, and we have an understanding of what their position is. What they don't necessarily disclose to us is whether they will vote one way or the other. Some of them have told us directly they will be tendering their shares.
Okay. Very good. Thank you.
Someone here with me.
Our next question comes to the line of Greg Pardy. Please go ahead.
Happy New Year.
Happy New Year, Greg Pardy.
What's the range of values that Suncor puts on Lease 29?
Lease 29 is a bit of a red herring here. I could talk about Lease 29, but it's a bit of a red herring. Whether we have 12% or 49%, or in fact even 51%, makes no significant difference to the governance of Syncrude. A commercial market price will be negotiated by Syncrude on behalf of the group of companies. The group of companies, even if Suncor were up at the high percentages, would still only be one of the votes towards that. It's a bit of a red herring. I have no doubt, if you stand back, if you look at our mine, Lease 29 has some attraction to Suncor. We are a massive resource owner in the region. We have enough resource in our ownership for the next 50+ years.
Definitely, one of the next stages in the development of the whole basin will be the rationalization or unitization of some of the leases. Some of the leases the others own would be better for us, and some of the leases we own will be better for other people. We have leases close to Kearl. We have leases close to Shell. We have leases close to CNQ. We have leases close to Syncrude. There will be some rationalization at some stage, but nothing about this deal is really to do with Lease 29. It's a red herring.
Isn't it true that if Suncor, at some point, agrees to buy Lease 29 off of Syncrude, and if you're successful in purchasing Canadian Oil Sands, you obviously don't have to pay for 37% of Lease 29 because it came with Canadian Oil Sands?
These leases in the future that aren't being developed have very little value. There are masses of reserves out there which potentially have value, but until somebody puts a project on them, at the moment, reserves are selling for pennies on the dollar.
Right. What do you think they're worth if they're classified as proven reserves?
Well, proven reserves, we still have enough reserves. Give us an actual number, Steve.
CAD 6 billion.
We have an excess of 6 billion barrels of proven reserves. We actually have in place probably between 25 and 50 billion barrels with different levels of reserve classification. The marginal reserve in a basin which almost certainly will not produce all of its reserves is interesting, but it's not that material to this deal.
Okay. I need to wrap up here. We have hit our time limit. Operator, I'll ask you to terminate the call. I would like to, just before we do that, thank everyone for participating, and we continue to welcome questions. Certainly that offer@suncor.com is a good vehicle for reaching us, and we will commit to prompt responses. Thanks to everyone for participating, and we would encourage you, tender your shares today. Thank you, operator.
Ladies and gentlemen, that does conclude the conference call for today. We thank you for your participation and ask that you please disconnect your lines.