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.
Jun. 11, 2013, 12:33 PM
Penn West (PWE +3.9%) is poised to break up to boost a valuation that's weaker than 99% of its peers, after recently overhauling management, Bloomberg writes. PWE has many high-quality assets, and analysts support separating PWE into two businesses, one focused on assets with growth potential and the other on properties whose predictable production would allow for an attractive dividend.| Jun. 11, 2013, 12:33 PM | 6 Comments
Mar. 8, 2013, 8:13 AM
Penn West (PWE) +3.3% premarket, apparently on speculation the energy company could be up for sale. Using the price per flowing barrel of oil paid via Linn Energy's acquisition of similarly oil-weighted Berry Petroleum, SA contributor Devon Shire calculates PWE could be taken out at ~$23.59/share.| Mar. 8, 2013, 8:13 AM | 5 Comments
Nov. 6, 2012, 5:43 PM
Franco Nevada (FNV) agrees to acquire a ~11.7% net royalty interest in the Weyburn Oil Unit with Penn West Petroleum (PWE) for C$400M in cash. Current production levels are ~26K bbl/day of medium grade slightly sour crude. FNV expects the acquisition to be immediately accretive to revenue, cash flow and earnings.| Nov. 6, 2012, 5:43 PM