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Canadian Oil Sands Ltd. (COSWF)

  • 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
  • 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, 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, 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
  • Wed, Sep. 9, 2:23 PM
    • Canadian Oil Sands (OTCQX:COSWF -3.5%) says it had reviewed selling a small portion of its future production from the Syncrude oil sands project but decided against it for now.
    • The company says a sale would have involved a small percentage of revenues it generates from crude production in a exchange for a one-time payment; it evaluated the option in light of what other companies have done, citing recent sales by Cenovus Energy and Encana of freehold royalty properties to raise cash, but believes it does not need additional funding.
    • WSJ reported yesterday that COSWF had discussed a potential sale of future production with shareholder Highlands Capital.
    | Wed, Sep. 9, 2:23 PM | 1 Comment
  • Thu, Aug. 13, 12:45 PM
    • A key pipeline for delivering Canadian oil to the U.S. remains shut for a third day, leaving heavy crude stranded in Alberta and keeping its price in the cash market at ~$20 below the WTI benchmark.
    • A small leak near Shelbina, Mo., coming from Enbridge’s (ENB -1.1%) Spearhead pipeline, which runs from Flanagan, Ill., to the Cushing, Okla., crude hub forced the shutdown Tuesday of the 193.3K bbl/day pipeline as well as a closing of the parallel Flanagan South pipeline, an even larger 585K bbl/day line that runs from Pontiac, Ill., to Cushing.
    • ENB expects operations at Flanagan South to resume today, but does not know when Spearhead may return to service, as it continues to investigate the cause of the spill in Missouri.
    • Operational problems at BP's (BP -1.5%) Whiting, Ind., refinery also keep the pressure on prices for Canada’s heavy crude as barrels continue to get backed up.
    • Other related tickers: SU, IMO, TRP, CNQ, CVE, TCK, CEO, OTCPK:HUSKF, OTCQX:COSWF
    • Earlier: Canadian oil sands price nears $20/bbl, cut in half since July 1
    | Thu, Aug. 13, 12:45 PM | 9 Comments
  • Wed, May 6, 2:36 PM
    • Canadian energy stocks are broadly lower after the shocking election result in Alberta raised questions about the future of the country's oil industry: SU -3.3%, ENB -2.8%, TRP -2.6%, IMO -2.3%, CNQ -2.3%, CVE -5.8%, OTCQB:HUSKF -1%, TCK -1.6%, TAC -4.1%, OTCQX:COSWF -6%.
    • "Energy is such a critical issue to Alberta, I’m really not that concerned," ENB CEO Al Monaco says, but investors and analysts disagree.
    • "It’s completely devastating" for energy companies and investors, saysCanoe Financial's Rafi Tahmazian of stated plans by the newly elected government to raise corporate taxes, review the government’s take of energy revenue, scale back advocacy for pipelines and phase out coal power more quickly.
    • “If you are invested in energy stocks, you should be concerned,” says AltaCorp’s Jeremy McCrea, noting that drillers already face higher costs to extract oil and gas in Alberta than in many jurisdictions, so an increase in royalties would make the province even less competitive.
    | Wed, May 6, 2:36 PM | 59 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
  • Tue, Feb. 24, 10:59 AM
    • Transocean (RIG -1.6%) is poised to be the first in a wave of energy-related debt issuers downgraded to junk status, according to a Barclays report that says RIG could be stripped of its investment-grade ratings soon after it reports earnings tomorrow.
    • The cost of credit swaps used to protect RIG debt against default within five years has soared to 714 bps, a level associated with junk-rated companies, from less than 200 in September, Bloomberg says.
    • Weatherford (NYSE:WFT), Nabors Industries (NYSE:NBR) and Canadian Oil Sands (OTCQX:COSWF) are among the other investment-grade energy companies at risk of a downgrade to junk by mid-2016, according to Barclays.
    • As much as $20B of energy-related debt may be cut to junk within 18 months, expanding what is already the largest part of the high-yield, high-risk market by 11%, the report says.
    | Tue, Feb. 24, 10:59 AM | 12 Comments
  • Dec. 16, 2014, 10:49 AM
    • Canadian Oil Sands (OTCQX:COSWF +4.5%) lowers its 2014 production guidance for the Syncrude project to ~94M barrels from its previous view of 95M-100M barrels, citing an outage in a sour water treater.
    • The unit is expected to be repaired by the end of December, the company says.
    • The Syncrude project, which can produce 350K bbl/day, has a history of unplanned shutdowns caused by equipment malfunctions.
    | Dec. 16, 2014, 10:49 AM | 11 Comments
  • Dec. 4, 2014, 12:57 PM
    • Canadian Oil Sands (OTCQX:COSWF -15%) plunges after revealing plans to reduce its dividend to $0.20 from $0.35 when it reports Q4 earnings in late January.
    • The company, whose main asset is a 37% stake in the Syncrude oil sands mine in Alberta, says its net debt would grow at a pace that would quickly exceed $2B if the current dividend level was maintained.
    • Also says it expects 2015 capital spending of $564M, down from its $938M estimate for this year, based on an average U.S. benchmark oil price of $75/bbl.
    | Dec. 4, 2014, 12:57 PM | 27 Comments
  • Apr. 25, 2014, 10:14 AM
    • Canadian Oil Sands (COSWF -4.4%) announces an unplanned maintenance-related outage at Syncrude Coker 8-1, prompting it to lower its estimate for 2014 Syncrude production to 95M-105M barrels.
    • National Bank downgrades shares to Underperform from Sector Perform, saying the outage could mean Q2 production will get hit especially hard since the timing could overlap with planned maintenance of another upgrader.
    • Other owners of Syncrude include Imperial Oil (IMO), Suncor (SU), Murphy Oil (MUR), Sinopec (SNP) and Cnooc (CEO).
    | Apr. 25, 2014, 10:14 AM | 1 Comment
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