May 27, 2015, 6:57 PM
- Analysts appear to appreciate Crescent Point Energy's (NYSE:CPG) C$1.53B takeover of Legacy Oil + Gas (OTCPK:LEGPF) more than investors; analysts say the deal makes a lot of sense, but investors nevertheless sent CPG shares 5% lower in today's trade.
- Roughly two-thirds of Legacy’s production folding into CPG's core areas, the land being acquired provides an attractive entry into an area of Saskatchewan where Legacy has been posting strong results, and the deal may have a positive impact on the prospects for CPG’s dividend.
- Raymond James analyst Chris Cox thinks the deal provides investors with greater visibility around the sustainability of CPG’s dividend beyond 2015; he believes CPG will be able to fully fund its capital program and current dividend at $70-$75 oil prices in 2016.
- Brian Kristjansen at Dundee Capital upgrades CPG to Buy from Hold, noting that Legacy’s overlevered position and resulting share price weakness allowed it to be bought at an attractive level.
- Analysts say debt-burdened Canadian companies including Lightstream Resources (OTCPK:LSTMF), Penn West Petroleum (NYSE:PWE) and Connacher Oil and Gas (OTCPK:CLLZF) could become targets as larger buyers become active.
Apr. 3, 2015, 6:02 PM
- A bid by oil sands developer Connacher Oil & Gas (OTCPK:CLLZF) to restructure out of court in Canada has been rejected, in a victory for lenders who had sued to disrupt the deal in New York state court.
- Connacher was seeking an Alberta court’s approval to swap $1B of bonds for equity and to issue $35M of convertible notes; the lenders had said the Canadian court couldn’t rule on the issue because Connacher defaulted on a $128M loan, which is a more senior form of debt.
- The company says it is assessing alternatives such as a possible sale of all or part of its assets.
Aug. 15, 2012, 2:59 PM
Connacher Oil and Gas (CLLZF.PK -12.1%) says it will sell its Montana refinery to Calumet Specialty Products (CLMT +1%) for ~$120M plus working capital, a deal that adds crude oil throughput capacity of ~9,800 bbl/day for CLMT. Connacher, deeply in debt, hopes the asset sale will enable it to survive long enough to find a buyer for the Canadian company.| Aug. 15, 2012, 2:59 PM