- Teck Resources (TCK -5.8%) is reiterated with an Outperform rating at FBR following Suncor Energy's (SU +1.2%) announced agreement to purchase an additional 10% interest in the Fort Hills oil sands project from Total (TOT -1.3%) for C$310M; TCK has a 20% interest in the project.
- FBR analyst Lucas Pipes values TCK's share at C$1.945B, with today's transaction "right in-line with our valuation when considering Suncor’s incremental capital increase."
- Pipes believes TCK’s interest in Fort Hills greatly reduces its overall risk profile, and is encouraged by SU’s continued commitment to the project; he also likes TCK for its low-cost exposure to met coal and zinc, two commodities he sees as "better positioned in the current market environment."