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Canadian Oil Sands Ltd. (COSWF)

  • Thu, Nov. 12, 10:54 AM
    • Suncor Energy (SU -0.6%) sends a letter to Canadian Oil Sands (OTCQX:COSWF -0.6%) shareholders urging them to disregard their board of directors and accept its hostile C$4.7B ($3.5B) takeover offer.
    • SU says COSWF shareholders should accept its offer, given the later's "track record of underperformance, financial challenges and significant vulnerability in a 'lower for longer' oil price market."
    • SU says the potential premium of its offer has increased to 57% from 43% compared with the pre-offer trading price of $6.19 because of the substantial increase in the price of SU shares, which closed at $38.97 on the TSX on Nov. 9 from a pre-offer closing price of $35.37 on Oct. 2.
    | Thu, Nov. 12, 10:54 AM | 36 Comments
  • Fri, Nov. 6, 7:57 AM
    • Suncor Energy (NYSE:SU) says its effort to get the poison pill adopted by Canadian Oil Sands (OTCQX:COSWF) thrown out will be heard on Nov. 26 by Alberta’s securities regulator, following SU's application for an order to stop the new shareholder rights plan.
    • SU launched its hostile takeover bid ‎for COSWF in early October, prompting the target company’s board to implement the rights plan that requires bids to be open for 120 days; SU’s bid expires Dec. 4, and it calls the move by COSWF a stalling tactic and wants the Alberta Securities Commission to strike it down.
    • COSWF calls SU's move a "smokescreen" intended to obscure a weak offer and says it will oppose the application.
    | Fri, Nov. 6, 7:57 AM | 14 Comments
  • Thu, Oct. 29, 6:25 PM
    • Canadian Oil Sands (OTCQX:COSWF) reiterates its rejection of Suncor Energy's (NYSE:SU) hostile takeover offer, and says it is considering alternatives including a potential sale of the company or a merger or partnership with a strategic or financial partner.
    • In its Q3 earnings, COSWF says cash flow from operations fell 73% Y/Y to C$82M, or C$0.17/share, from C$302M, or C$0.62/share, a year ago, partly due to a 41% drop in realized selling prices for synthetic crude oil from Syncrude to C$60.20/bbl from C$102.58/bbl.
    • The company cuts its full-year cash flow from operations forecast to C$340M from a July estimate of C$474M, as it expects continued low crude oil prices.
    • COSWF says its overall Q3 total sales volumes fell partly because of an August fire at Syncrude’s main oil sands plant, which reduced output by 7M barrels Q/Q to 86,687 bbl/day and by 2.6M barrels Q/Q net to the company.
    • COSWF holds the largest stake in the Syncrude oil sands project, while joint venture partner SU owns 12%.
    | Thu, Oct. 29, 6:25 PM | 33 Comments
  • Wed, Oct. 21, 2:38 PM
    • Analysts now expect Suncor Energy (SU -1.2%) to increase its hostile takeover bid for Canadian Oil Sands (OTCQX:COSWF -1.9%), with several increasing their price target for COSWF shares to reflect a higher value than the $8.65/share SU offered when it took its deal directly to shareholders on Oct. 5.
    • FirstEnergy Capital analyst Michael Dunn says SU "very likely" would extend a higher bid, raising his price target on COSWF to $11.85, roughly the price SU had offered privately in the spring.
    • Dunn thinks Syncrude’s Lease 29 is more valuable to SU than it is saying, but that is not critical to SU’s future.
    • Barclays raised its price target on COSWF to $10 following the target company's rejection.
    | Wed, Oct. 21, 2:38 PM | 22 Comments
  • Mon, Oct. 19, 3:45 PM
    • Canadian Oil Sands (OTCQX:COSWF -2.7%) expects strong interest from other suitors following its rejection of Suncor Energy's (SU -2.6%) hostile takeover bid, CEO Ryan Kubik tells Reuters.
    • "There's interest from a broad range of buyers... whether it be private equity, whether it be pension funds, or international oil companies," Kubik says while adding that COSWF has not yet been approached with any other offers.
    • The CEO tells Bloomberg that several groups would have an interest in COSWF because the company has managed to cut costs and sustain cash flows even with U.S. oil at less than $50/bbl.
    | Mon, Oct. 19, 3:45 PM | 11 Comments
  • Mon, Oct. 19, 7:58 AM
    • Canadian Oil Sands' (OTCQX:COSWF) board recommends shareholders reject Suncor Energy's (NYSE:SU) proposed C$4.3B takeover offer, which it calls "opportunistic and exploitive" and undervalues the company.
    • COSWF says the price underestimates the value of the companies’ combined stakes in the Syncrude partnership and does not reflect a premium to potentially acquire operational control through the deal, and says SU is aware of several yet-to-be-disclosed cost-reduction and value-enhancing initiatives at Syncrude that are not reflected in the bid.
    • COSWF also revises its FY 2015 guidance, now estimating a production range for Syncrude of 92M-97M barrels and raising its 2015 estimate for cost savings at Syncrude to $1.3B ($480M net to COSWF) from $900M ($330M net), having exceeded the previously estimated $900M in savings during the first nine months of 2015, and has identified further opportunities to reduce costs.
    | Mon, Oct. 19, 7:58 AM | 1 Comment
  • Thu, Oct. 15, 11:58 AM
    • Suncor Energy’s (SU -1.1%) offer to buy Canadian Oil Sands (OTCQX:COSWF -2%) is "ill advised" because of low oil prices and the potential for further share price declines, Venator Capital's Brandon Osten tells Bloomberg.
    • Any purchase of Canadian Oil Sands needs $70/bbl oil, Osten says; his hedge fund has shorted SU since Q1.
    • Osten expects Exxon Mobil affiliate Imperial Oil - Syncrude’s second largest owner behind COSWF - to make a counter-offer with either cash or shares, but "either way, I think Canadian Oil Sands gets taken over in the next six months.”
    | Thu, Oct. 15, 11:58 AM | 16 Comments
  • Wed, Oct. 7, 5:56 PM
    • Suncor Energy (NYSE:SU) criticizes the move by Canadian Oil Sands' (OTCQX:COSWF) board to adopt a poison pill defense two days after receiving SU's unsolicited takeover offer, predicting the effort to block a deal would fail based on the price premium offered to COSWF shareholders.
    • Before SU’s offer, the COSWF stock price had fallen 41% YTD, a reflection of its struggle with lower oil prices, production problems at Syncrude and a surging debt load.
    • On a conference call, SU CEO Steve Williams said his company made a few overtures to its target in the spring, but was rebuffed.
    • SU says its offer will stay open until Dec. 4, although it could be withdrawn or the deadline could be extended.
    | Wed, Oct. 7, 5:56 PM | 26 Comments
  • Wed, Oct. 7, 10:26 AM
    • Canadian Oil Sands (OTCQX:COSWF +1.4%) adopts a poison pill takeover defense calling for 120 days to consider offers, two days after Suncor Energy (SU +2.7%) launched a hostile bid for the company.
    • The rights plan, which is in addition to one already in place, would be triggered upon the purchase of 20% or more of the company’s shares outstanding by any person.
    • COSWF says the shareholder rights plan is meant to give its shareholders and board adequate time to evaluate SU’s C$4.3B ($3.3B) all-stock offer and any other unsolicited bid or strategic options.
    • SU expected its bid to be rejected initially and would work to win over shareholders in several meetings, CEO Steve Williams told Bloomberg yesterday.
    | Wed, Oct. 7, 10:26 AM | 4 Comments
  • Mon, Oct. 5, 7:45 PM
    • Suncor Energy's (NYSE:SU) C$4.3B hostile takeover bid for Canadian Oil Sands (OTCQX:COSWF) is "not a low-ball offer, it’s a no-ball offer,” according to billionaire Seymour Schulich, who owns 25M shares, or 5%, of the company and says he is not selling at the offer price.
    • Schulich says SU's proposal is worth less than half the replacement value of the Syncrude Canada joint venture, of which COSWF owns 37%, and that Imperial Oil (NYSEMKT:IMO) recently built the Kearl oil sands project at a cost of $13B, which produces lower-grade oil than the Syncrude project.
    • Analysts are split on whether the deal was a good one for COSWF shareholders; National Bank Financial's Kyle Preston calls the bid “a positive deal" and raises the possibility that IMO, along with parent company Exxon Mobil (NYSE:XOM), could launch a competing bid, but Barclays’ Paul Cheng, among others, does not believe IMO will make a bid.
    • Earlier: Reuters: Canadian Oil Sands to reject Suncor bid, unlikely to engage
    | Mon, Oct. 5, 7:45 PM | 49 Comments
  • Mon, Oct. 5, 3:58 PM
    • Canadian Oil Sands (OTCQX:COSWF +55%) is prepared to reject the hostile takeover bid made by Suncor Energy (SU -1.6%) and is unlikely to engage with SU on the basis of the current proposal, Reuters reports.
    • Earlier this afternoon, COSWF said it was reviewing the offer and asked shareholders to wait until it has time to respond.
    • SU earlier today shook up Canada's oil industry by forwarding an all-stock offer for COSWF, which owns a large stake in Canada's Syncrude project in Alberta.
    • "Maybe Suncor comes back with a small sweetener, to maybe save some face and make it look a little bit better, but I don't know if they even need to do that," says 3Macs energy analyst Robert Mark, adding that "my guess is that this deal gets done at the current price."
    | Mon, Oct. 5, 3:58 PM | 5 Comments
  • Mon, Oct. 5, 7:28 AM
    • Suncor Energy (NYSE:SU) says it has offered to acquire all outstanding shares of Canadian Oil Sands (OTCQX:COSWF) for ~C$4.3B ($3.3B), a 43% premium over Friday's closing price.
    • Including the company’s estimated outstanding net debt of C$2.3B as of June 30, the total transaction value would be ~C$6.6B.
    • The offer for CPSWF, which owns 37% of the Syncrude oil sands consortium, comes as the company struggles with a slumping stock price due partly to low crude prices.
    • For SU, the deal would give it a growing presence in the Canadian oil sands after recently boosting its stake in the Fort Hills oil sands project in Alberta to just over 50% by buying a 10% stake from project partner Total.
    • SU -1.6% premarket.
    | Mon, Oct. 5, 7:28 AM | 65 Comments
  • Tue, Apr. 14, 12:58 PM
    • Canadian Oil Sands (OTCQX:COSWF +5.5%), the company with the largest stake in oil sands miner Syncrude Canada, is a prime takeover target and its most likely suitor is Imperial Oil (IMO +1.9%), the company with the second-largest stake, says FirstEnergy Capital analyst Michael Dunn.
    • The analyst says his report is partly based on recent investor meetings with senior IMO execs who believe now is a good time to consider making acquisitions.
    • Dunn thinks IMO would not want to pay more than a price in the low teens for COSWF, so its stock would have to fall further to make a bid attractive, and he suggests the company would not want to take on excessive debt - which could mean an equity-based offer, help from its controlling shareholder, Exxon Mobil (NYSE:XOM), or enrolling a current Syncrude partner such as Suncor (NYSE:SU).
    | Tue, Apr. 14, 12:58 PM | 7 Comments
  • Mon, Feb. 2, 6:24 PM
    • Canadian Oil Sands (OTCQX:COSWF) jumped 20% today in Toronto on rumors it could be a takeover target by one of its partners in Syncrude Canada.
    • Canadian Oil Sands is the largest shareholder in Syncrude, with a 37% stake, but larger companies such as Imperial Oil (NYSEMKT:IMO) also own major stakes in the venture; the rumors appeared to take flight as IMO parent company Exxon Mobil (NYSE:XOM) signaled today that it would be acquisitive in the current low oil price environment.
    • FirstEnergy Capital analyst Michael Dunn says a Canadian Oil Sands “takeout by another Syncrude partner is a distinct possibility should the shares continue to languish."
    | Mon, Feb. 2, 6:24 PM | 20 Comments
Company Description
Canadian Oil Sands is a pure investment opportunity in light, sweet crude oil. Through our 36.74% interest in the Syncrude project, we offer a solid, robust production stream of fully upgraded crude oil, exposure to future crude oil prices, potential growth through high-quality oil sands leases... More