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Mon, Jan. 4, 3:59 PM
- Suncor Energy (SU -1.9%) CEO Steve Williams says his company has not ruled out increasing its offer to buy Canadian Oil Sands (OTCQX:COSWF -5%), just days before a self-imposed January 8 deadline for a takeover deal.
- The CEO tells Dow Jones that SU's offer of 0.25 of a share for each COSWF share, a deal currently valued at ~C$4.28B ($3.09B) remains fair, especially since crude oil prices have continued to fall after making its bid in early October, but "I wouldn’t rule anything completely in or out" on additional incentives to win over more shareholders.
- Williams says he expects to announce early next week whether or not the company will proceed with the buyout.
- Earlier: Canadian Oil Sands plans to remain independent after Suncor bid
- Earlier: Schulich says he plans to hold Canadian Oil Sands shares in Suncor bid
Mon, Jan. 4, 12:23 PM
- Investor Seymour Schulich says he will not tender his shares to Suncor Energy (SU -2.5%) in its C$4.3B ($3.1B) hostile bid for Canadian Oil Sands (OTCQX:COSWF -5.3%), preferring to hold on to his shares and wait for a rebound in crude oil.
- "Everybody I have talked to thinks the offer is too low,” says Schulich, who says he owns 5% of COSWF, making him one of the company's biggest shareholders.
- SU has offered 0.25 of its own shares for each COSWF share in the offer worth ~C$8.93/share, a 44% premium to COSWF's pre-bid trading price.
Mon, Jan. 4, 7:51 AM
- A defiant Canadian Oil Sands (OTCQX:COSWF) issues a "declaration of independence," contingent upon the expiration of Suncor Energy's (NYSE:SU) hostile bid on January 8.
- The board has considered a “full range of alternatives against the Suncor offer, including a full or partial sale to other parties, and a royalty financing,” Chairman Don Lowry says in a letter to shareholders. “Independence is, by far, the better decision.”
- Canadian Oil Sands “has the financial resources to weather the current downturn... [with] significant inherent value as an independent company," the letter also says.
Dec. 16, 2015, 5:17 PM
- The cost to produce crude oil from Alberta’s oil sands dropped this year after 15 years of continuous inflation, according to a new report from IHS Energy, as capital and operating costs in the region have fallen in response to collapsing global oil prices.
- But the findings do not mean the oil sands are now a more competitive choice for energy companies’ investment dollars compared with shale or offshore oil formations, as costs across the global energy industry also have dropped.
- The report also says 70% of oil sands production growth over the next five years will come from the expansion of existing projects, and 80% of that growth will be from steam-based, rather than mining, projects.
- Relevant tickers: SU, CVE, OTCPK:HUSKF, OTCQX:COSWF, RDS.A, RDS.B, IMO, XOM, CNQ, ENB, TRP, OTCPK:MEGEF
Dec. 16, 2015, 2:31 PM
- Moody's says it is reviewing 29 E&P companies from the U.S. and seven from Canada for a potential downgrade, saying the companies "will be stressed for a longer period with much lower cash flows, difficulty selling assets and limited capital markets access."
- Based on the severity and potential duration of the industry challenges, Moody's expects many companies will be downgraded one notch and others could be lowered by more than one notch.
- Yesterday, the ratings agency cut its oil and gas price assumptions in light of continuing oversupply in the global oil markets and the U.S. natural gas market.
- Among the U.S. companies: APC, AR, APA, XEC, CXO, COP, CLR, DNR, EGN, EOG, EPE, EQT, HES, MRO, MUR, NFG, NFX, NBL, OXY, PXD, QEP, RRC, SM, SWN, UNT, WLL, WPX
- From Canada: BTE, CNQ, OTCQX:COSWF, CVE, ECA, OTCPK:HUSKF, SU
Dec. 15, 2015, 5:45 PM
- Canadian billionaire investor Seymour Schulich, who initially called Suncor’s (NYSE:SU) C$4.3B offer for Canadian Oil Sands (OTCQX:COSWF) "ridiculous," now says he and potentially other major investors would be willing to support the deal.
- Schulich, who owns 5% of COSWF, says he is part of a group of major investors who together control 28% of the company and who will not tender their shares with SU, which is offering to exchange each COSWF share for 0.25 SU shares.
- He says none of his group wants to sell at a low point in the oil price cycle but could be willing to support the deal if SU gave them an option to buy more shares should oil prices rise in the future - "If you give us a warrant on your stock that if oil goes up in two years... the warrant has value and the shareholder gets value... If they put that in, I could support the deal."
Dec. 15, 2015, 10:52 AM
- "Hope is still not a strategy," Suncor (SU +1.2%) says as it urges Canadian Oil Sands (OTCQX:COSWF +2.6%) shareholders to tender their shares to its offer for the company.
- In a letter to COSWF shareholders, SU highlights the premium it is offering and warns that the share price likely would drop "sharply" if its bid is rejected.
- "Your Board is telling you that COS will be better off continuing as a standalone company," the letter says. "What they aren't telling you is that in this environment, it could take as long as 10 years before COS would have enough cash flow to fix its balance sheet and reinstate a significant dividend."
Dec. 11, 2015, 7:26 PM
- Alberta's provincial government says it will delay the release of a controversial review of royalty rates paid by oil and gas producers until early next year.
- Premier Notley and her NDP party had promised to reassess royalty rates on energy production as part of an election campaign that swept them into office earlier this year, but the review has drawn sharp criticism in the oil patch and from opposition parties because it comes as the province and energy industry struggle with tanking oil prices.
- Alberta's energy minister has said any changes in royalty rates would not take effect before 2017, a move intended to ease the impact on the energy industry.
- Relevant tickers: SU, CVE, OTCPK:HUSKF, OTCQX:COSWF, RDS.A, RDS.B, IMO, XOM, CNQ, ENB, TRP, OTCPK:MEGEF
Dec. 9, 2015, 9:15 AM
- Canadian Oil Sands (OTCQX:COSWF) says it has moved up the timing of Syncrude's turnaround of its 8-2 coker into 2015 from mid-2016 to improve throughput, after a buildup of coke in the unit led to reduced circulation.
- COSWF says Syncrude’s gross 2015 oil sands production will now total ~90M barrels, down from an expected 92M-98M barrels; the facility produced 94M barrels in 2014.
- The setback at Syncrude recalls how unreliable the project has been in the past and could push investors to be more receptive to Suncor’s (NYSE:SU) takeover offer, an unnamed analyst tells the Calgary Herald.
Dec. 4, 2015, 8:06 AM
- Suncor (NYSE:SU) extends its hostile takeover offer for Canadian Oil Sands (OTCQX:COSWF) by another month to Jan. 8, in line with this week's ruling from Alberta's securities regulator that COSWF shareholders must be given until at least Jan. 4 to vet the bid, currently worth ~C$4.46B (US$3.34B).
- SU does not raise its offer, which it says is full and fair, but earlier it had indicated it could drop its bid entirely if its original early December deadline was not met.
- "The pressure is clearly on COS’ board and management to prove they are acting in someone’s interest other than their own," SU says.
- "Extending the expiry of Suncor’s bid does not change the fact that it is substantially undervalued and opportunistic," COSWF says.
Dec. 3, 2015, 9:59 AM
- An eastern Canadian refiner has begun receiving crude oil, including Bakken oil from North Dakota, via Enbridge’s (ENB +0.2%) newly reversed Line 9B, Bloomberg reports.
- Companies such as Suncor Energy (SU +0.4%) and Valero Energy (VLO -0.3%) have said their refineries in Quebec could rely 100% on North American crude after the reversed 300K bbl/day pipeline ramps up to full capacity.
- The new flow has redirected some crude that used to go to the Cushing, Okla., storage hub; ENB’s Spearhead pipeline, which runs to Cushing from Illinois, will run below capacity in December and January for the first time in two and a half years.
Dec. 2, 2015, 10:20 AM
- A secret deal between four of Alberta's oil sands leaders and environmentalists to cap emissions in exchange for backing down on pipeline opposition has outraged players who were left on the sidelines, Financial Post reports.
- Four oil sands leaders - Canadian Natural Resources' (NYSE:CNQ) Murray Edwards, Suncor (NYSE:SU) CEO Steve Williams, Shell Canada (RDS.A, RDS.B) Lorraine Mitchelmore, and Cenovus Energy (NYSE:CVE) CEO Brian Ferguson - stood with Alberta Premier Notley Nov. 22 as she announced a climate change plan that included a firm cap on the oil sands’ share of provincial emissions at 100 megatonnes/year from ~70 megatonnes today.
- But leaders of competing companies including Imperial Oil (NYSEMKT:IMO) and MEG Energy (OTCPK:MEGEF) were not consulted and are said to be outraged by the secret deal; they also worry the deal is unenforceable and that it is premature to support a policy whose details and financial implications are not known.
- The deal also has sparked concern that it could decide new winners and losers, with the potential to pit put oil sands miners against in situ.
Nov. 30, 2015, 5:55 PM
- Canadian Oil Sands (OTCQX:COSWF) has until Jan. 4 to find alternative suitors to Suncor Energy’s (NYSE:SU) hostile takeover bid, the Alberta Securities Commission rules.
- The decision allows COSWF’s poison pill to stay in place for 90 days but not as long as the 120 days the company had sought.
- SU, which believes the 60 days it gave COSWF shareholders on Oct. 5 to tender their shares should be sufficient, has said it could scrap its bid if Alberta regulators endorse a poison pill that would allow more time to find other bidders.
Nov. 27, 2015, 1:48 PM
- The increasingly bitter fight over Canadian Oil Sands' (OTCQX:COSWF) potential to attract bids to rival Suncor Energy’s (NYSE:SU) $4.3B hostile takeover offer led to tense exchanges at yesterday's Alberta Securities Commission hearing.
- A representative with J.P. Morgan, SU's advisor and supporting the company’s position that COSWF should not be allowed to change its shareholder rights plan in an attempt to fight off the takeover offer, said no one was likely to make a competing bid for COSWF.
- The rep said the possibility that Imperial Oil and its parent company Exxon Mobil, long rumored as suitors, was remote since neither had made an offer to date, even though either could do so quickly given IMO's ownership of 25% of Syncrude.
- The Canadian Oil Sands rep RBC, however, said 25 interested parties were reviewing the "opportunity," with four signing confidentiality agreements and "a good prospect" for at least one proposal.
- The Commission is expected to issue its decision on the COSWF shareholder rights plan before SU’s Dec. 4 deadline; if it rules in favor of COSWF, then shareholders would have until early April to make a decision if the SU bid is not withdrawn before then.
Nov. 23, 2015, 8:19 AM
- Alberta's government announces plans to cap oil sands emissions for producers, phase out coal power plants and implement a carbon tax in an effort to curb pollution.
- The provincial government in impose a limit of 100 megatons/year of carbon emissions, above current annual emissions of ~70 megatons, phase out coal power plants by 2030, and set a carbon price of C$20/metric ton (US$15) by 2017 which rises to C$30 in 2018.
- The Canadian Association of Petroleum Producers supports the initiative, saying it could help improve Alberta’s image in markets to which oil sands producers hope to expand access.
- "This will create a wealth of opportunities and jobs for generations to come. We in Alberta want to take a leadership role on climate," says Suncor (NYSE:SU) CEO Steve Williams.
- Coal producers criticized the new policy, however, saying it will raise electricity costs in Alberta and cost Canadian jobs.
- Other relevant tickers: TRP, ENB, IMO, XOM, RDS.A, RDS.B, OTCQX:COSWF, OTCPK:HUSKF, CVE, CNQ
Nov. 18, 2015, 5:41 PM
- Suncor Energy (NYSE:SU) CEO Steven Williams says he wants to take advantage of the industry downturn to get even bigger by seeking more assets in Canada’s oil sands, as competitors struggle or walk away from bitumen production in Alberta.
- "We’re starting to bust this paradigm of Canadian oil sands being expensive,” Williams tells Bloomberg. “We prepared ourselves well, we managed the cost side of our business, and we have generated cash in each of our quarters. We’re one of the few oil companies in the world to do that.”
- SU, which is trying for a hostile takeover of Canadian Oil Sands, will pursue other consolidation opportunities in the industry, Williams says, but adds that SU has offered a full and fair price and will not raise the offer for its partner in the Syncrude oil sands project.
- Earlier: Suncor sinks on plans for higher 2016 spending, lower production
Suncor Energy Inc is an integrated energy company. Its operations include developing petroleum resource basin, Canada's Athabasca oil sands. It explores for, acquires, develops, produces & markets crude oil & natural gas in Canada and internationally.
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