CS - Key projects & deals advance amid output limit extension - September 2019After being a main subject in Q2 conference calls, mandatory production limits in Alberta will continue to provide the backdrop of operator plans going forward after the province extended them by a year to December 2020 (PG.1). Alberta will provide producers with more flexibility, however, while at the same time addressing continued pipeline delays, such as Enbridge’s Line 3 replacement (PG.8). Against this backdrop, some companies have reported recent progress with key projects. In...
Sep 11, 2019
CS - People & Companies - May 07, 2019Enbridge announced that director
Michael E.J. Phelps died on April 20.
Phelps joined the board in February 2017,
when Enbridge completed its acquisition
of Spectra Energy. Phelps served as
CEO from 1988 to 2002 of Westcoast
Energy, which became part of Spectra. ARC Resources announced May
1 that James Houck has retired from the
company’s board after 11 years of service.
Previously, he served as CEO and president
of Marathon Oil Canada Corporation,
formerly Western Oil Sands Inc....
May 07, 2019
CS - People & Companies - December 04, 2018Bayshore Petroleum Corp.
announced Alex Falconer was named as
an independent director. His appointment
is subject to approval by the
TSX Venture Exchange. He
serves as CFO of a TSX
Venture-listed company and a CSE-listed
company. In addition, he has been a
director and audit committee member of
many resource-based issuers. Michael Hill will retire as CFO at
Cathedral Energy Services effective
Dec. 31. Scott MacFarlane, the company’s
president and CEO, will assume the duties
of CFO on an...
Dec 04, 2018
What the Analysts are Saying About Canadian Capital - June 28, 2018Advantage Oil & Gas (TSX: AAV; $4.08 – June 21; Buy; PT: $5.0)With AAV trading near a historical low EV/EBITDA multiple on an all-time low AECO strip we think it presents one of the most skewed risk/return profiles we've seen in a long time. We calculate a NTM EV/EBITDA multiple of 5.2x (equal to consensus) on a C$1.55/mcf AECO price (US$1.20), more than 2 turns below the 3-year average historical multiple of 7.5x. Additionally, at strip pricing to 2021 and a terminal AECO price of...
Jun 28, 2018
What The Analysts Are Saying About A&D - May 02, 2018Cenovus Energy Inc. (TSX: CVE; $12.28 – April 20; Overweight; PT: $17.00)We estimate oil sands pre-tax income (ex. special items) of C$273 million, compared to the 4Q17 level of C$486 million and the 1Q17 level of C$160 million. We estimate oil sands production of 356 mb/d, compared to 155 mb/d in 4Q17 and 184 mb/d in 1Q17. We estimate Deep Basin pretax income (ex. Special items) of C$3 million, compared to the 4Q17 loss of C$19 million. We estimate Deep Basin production of 123 mboe/d,...
May 02, 2018
Analyst Takes - Canadian Capital- April 25, 2018Advantage Oil & Gas (TSX: AAV; $4.08 – Apr 19; Buy: PT: $5.50)After incurring some unplanned downtime on their Glacier facility, Advantage announced last night they will defer production adds from the expanded plant due to weak AECO pricing. 2018 Capital spending remains unchanged, and the company will look to shift some development towards Valhalla and the Middle Montney at Glacier while delaying TILs on their Upper/Lower Montney at Glacier until pricing improves, which we suspect...
Apr 25, 2018
People & Companies - April 12, 2018Cardinal Energy named Ken
Younger its VP, South Area, effective April
1. Younger joined Cardinal in April 2016
and has progressed into leading the
company’s South operations area, which
is centered around the Bantry field. Cenovus Energy Inc. named
Jonathan McKenzie as its next CFO. He
will replace Ivor Ruste who will retire on
April 30. McKenzie was
CFO of Husky Energy
since 2015. Ruste has been CFO and EVP
of Cenovus since 2009. The board of directors of Clearview
Resources...
Apr 12, 2018
Husky plans for $3.0B in new securities over 25 monthsHusky Energy Inc. filed a shelf registration with the US SEC Jan. 22 covering $3.0 billion in securities that it would offer from time to time during the next 25 months. The securities would all be $US-denominated and include common and preferred shares, subscription receipts, warrants, units and debt securities. Proceeds from the future offerings would be used for general corporate purposes, the company said.At the end of Q3, Husky had C$5.94 billion in debt outstanding across nine...
Feb 02, 2018
Oil price recovery brings surge in oil and gas capital flowsA rebound in oil and gas in 2017 led to a modest increase in capital flows in 2017 as oil and gas companies sought financing to make acquisitions, repay existing debt or finance expansion of existing operations. Many of the debt and equity issues were issued to finance major acquisitions, as Canadian companies stepped in to buy assets that international oil and gas companies wanted to sell.Cenovus led the industry trend by buying additional interests in oil sands and Deep Basin assets...
Jan 12, 2018
Capex budgets based on stronger commodity pricesAfter most Canadian energy companies reported their Q3 earnings, they began announcing capital expenditure budgets for 2018, often based on assumptions that oil and gas prices would continue to improve. MEG Energy’s capex budget calls for $510 million funded from internally generated cash flow and cash on hand (PG 1). Husky Energy announced plans to boost its 2018 capex 33% to a midpoint of $3.0 billion (PG 1). Enbridge Inc. announced a strategic...
Dec 13, 2017
Stronger prices boost earnings, cash flowsOil prices were moderately stronger
in Q3 than they were a year ago, boosting
revenue, cash flows and, in most cases,
earnings for most Canadian oil and gas
companies. Companies
with a high percentage of
revenue from natural gas
sales originating in Alberta struggled as
a glut of supply pushed down natural gas
prices in the region during the quarter.
Most companies saw revenue
and earnings increase from last year,
including Canadian Natural Resources (PG 1), Husky Energy (PG...
Nov 20, 2017
Analyst Takes - September 13, 2017Husky Energy (HSE; $14.61-August 11; Equal Weight; PT-$16.00)
We view this transaction favorably and think that it could be slightly accretive
to the company's near-term earnings. More importantly, we think the company's
concurrent decision to postpone the FID of its C$800 million Lloydminster
asphalt refinery expansion post-2020 is a good trade-off, as we had
been concerned about the expansion's economics…The purchase of
the Superior refinery will not add any new asphalt supply or...
Sep 13, 2017
Analysts Takes - July 27, 2017Paramount Resources Ltd. (POU; $20.06-July 27; Equal Weight; PT-$25)In some repsects, the Trilogy merger proposal should come as no surprise. The two companies share CEOs (Jim Riddell) and POU still owns 15% of TET (since the 2005 spinout). Furthermore TET has a concentrated asset base that fits well with POU, and faces considerable blaance sheet limitations. POU is offering one share per 3.75 shares, represenitng $5/share; a modest 10% premium which may be challenged by...
Jul 27, 2017
What the Analysts are Saying - May 25, 2017Crude output expected to outpace western Canada pipeline capacityCanadian crude takeaway capacity is seemingly in vogue again with recent chatter surrounding various pipeline expansions. As existing oil sands projects ramp-up through 2017, total exports out of western Canada are expected to exceed existing pipeline capacity of roughly 4.0 million b/d by Q3. We see supply (excluding local refining demand of approximately 600,000 b/d) ramping from ~3.7 million b/d currently to...
May 25, 2017
BP could expand retail footprint via Husky oil sands swapWe reported last issue that Chevron or BP could soon become the next multinational company to either exit or significantly scale down its oil sands presence. In addition to reports that BP could sell its three operated oil sands projects, new reports indicate the major is considering an asset swap of its oil sands division for Canadian company Husky Energy’s 500 Canadian fuel stations and producing gas assets, The Times of London reported on April 23. BP would reportedly sell its 50% WI...
May 16, 2017