Seeking Alpha
Long/short equity, insider ownership
Profile| Send Message|
( followers)  

In this article, I will feature one oil sands company that has seen intensive insider buying during the last 30 days. Intensive insider buying can be defined by the following three criteria:

  1. The stock is purchased by three or more insiders within one month.

  2. The stock is sold by no insiders in the month of intensive purchasing.

  3. At least two purchasers increase their holdings by more than 10%.

Canadian Oil Sands (OTCQX:COSWF) provides investment opportunity in the oil sands through its 36.74% interest in the Syncrude project. The company is the joint venture owner of the Syncrude joint venture, a producer of low sulphur, light, synthetic crude oil.

(click to enlarge)

Insider buying during the last 30 days

  • Ian Bourne purchased 999 shares on September 16 and currently holds 22,069 shares or less than 0.1% of the company. Ian Bourne serves as a director of the company. Ian Bourne increased his holdings by 4.7% in September.
  • Donald Lowry purchased 1,609 shares on September 16 and currently holds 28,530 shares or less than 0.1% of the company. Donald Lowry is Chairman of the Board. Donald Lowry increased his holdings by 6.0% in September.
  • Adrienne Nickerson purchased 800 shares on September 12 and currently holds 1,250 shares or less than 0.1% of the company. Adrienne Nickerson is Vice President, Operations. Adrienne Nickerson increased her holdings by 177.8% in September.
  • C.E. Shultz purchased 999 shares on September 16 and currently holds 105,369 shares or less than 0.1% of the company. C.E. Shultz serves as a director of the company. C.E. Shultz increased his holdings by 1.0% in September.
  • David Sirrs purchased 600 shares on August 22 and currently holds 4,050 shares or less than 0.1% of the company. David Sirrs is Vice President, Marketing. David Sirrs increased his holdings by 17.4% in August.
  • Wesley Twiss purchased 999 shares on September 16 and currently holds 55,070 shares or less than 0.1% of the company. Wesley Twiss serves as a director of the company. Wesley Twiss increased his holdings by 1.8% in September.

Insider buying by calendar month

Here is a table of Canadian Oil Sands' insider-trading activity by calendar month.

MonthInsider buying / sharesInsider selling / shares
September 20135,4060
August 20131,8250
July 201300
June 20134,6890
May 20132,9320
April 201300

There have been 14,852 shares purchased and there have been zero shares sold by insiders since April 2013.

Financials

Canadian Oil Sands reported the second-quarter financial results on July 30 with the following highlights:

Revenue$1.0 billion
Net income$219 million
Net debt$481 million
Production100,094 boe/d

Outlook

Canadian Oil Sands' guidance for 2013 is as follows:

• Sales, net of crude oil purchases and transportation expense, of approximately $3.5 billion reflect estimated sales volumes of 37.5 million barrels and a $94 per barrel plant-gate realized selling price.

• Operating expenses of $1,507 million, or $40.21 per barrel, reflecting actual costs incurred to date and a natural gas price assumption of $3.50 per gigajoule.

• Cash flow from operations of $1,260 million, or $2.60 per share.

• Capital expenditures are estimated to total $1,279 million, comprised of $828 million of spending on major projects, $349 million in regular maintenance of the business and other projects, and $102 million in capitalized interest.

• Canadian Oil Sands intends to maintain a quarterly dividend of $0.35 per share in 2013.

(click to enlarge)

Competition

Canadian Oil Sands' competitors include Canadian Natural Resources (NYSE:CNQ), Cenovus Energy (NYSE:CVE), Imperial Oil (NYSEMKT:IMO), MEG Energy (OTCPK:MEGEF), and Suncor Energy (NYSE:SU).

(click to enlarge)

Canadian Natural Resources has seen 62 insider sell transactions and three insider buy transactions during the past six months. Cenovus Energy has seen eight insider sell transactions during the past six months. Imperial Oil has seen one insider sell transaction and 11 insider buy transactions during the past six months. MEG Energy has seen 60 insider sell transactions and nine insider buy transactions during the past six months. Suncor Energy has seen 34 insider sell transactions during the past six months.

(click to enlarge)

Canadian Oil Sands has the highest dividend yield among these six companies.

Conclusion

There have been six different insiders buying Canadian Oil Sands and there have not been any insiders selling Canadian Oil Sands during the last 30 days. Two of these six insiders increased their holdings by more than 10%.

Canadian Oil Sands is trading at a P/E ratio of 10.2 and the stock has a dividend yield of 7.0%. Canadian Oil Sands has the highest dividend yield among its peers. Canadian Oil Sands has also seen the most insider buying during the last six months among its peers. I believe the current share price presents a good entry point for Canadian Oil Sands.

Source: Insiders Are Buying Canadian Oil Sands