Seeking Alpha
 

Canadian Oil Sands Ltd. (COSWF)

- OTCQX
  • 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).
    | 5 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.
    | 12 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."
    | 20 Comments
  • Thu, Jan. 29, 5:28 PM
    • Canadian Oil Sands (OTCQX:COSWF) says it is cutting its quarterly dividend to $0.05/share from $0.35 to preserve balance sheet strength after collapsing crude prices took away more than two-thirds of its market value in six months.
    • The company reported Q4 EPS of $0.05 vs. $0.40 in the year-earlier period, as it sold 108K bbl/day of synthetic crude vs. 112K bbl/day a year ago; Q4 cash flow was $207M vs. $391M in the same period of 2013.
    • Shares had been halted from trading about an hour before the close of the Toronto Stock Exchange after falling ~7% to a 52-week low of $6.51.
    | 16 Comments
  • Fri, Jan. 2, 2:30 PM
    • As many as 16 oil sands’ projects worth nearly $60B that have not yet received corporate sanctioning may be deferred if current oil prices persist, according to upstream research analysts at Wood Mackenzie.
    • Key projects the firm expects to come on line by 2017 include the 165K bbl/day Fort Hill venture owned by Suncor (NYSE:SU), Total (NYSE:TOT) and Teck Resources (NYSE:TCK); Canadian Oil Sands' (OTCQX:COSWF) 100K bbl/day Mildred Lake replacement project; Imperial Oil’s (NYSEMKT:IMO) 110K bbl/day Kearl Phase 2; ConocoPhillips' (NYSE:COP) 109K bbl/day Surmont Phase 2; and Shell’s (RDS.A, RDS.B) 100K bbl/day Jackpine expansion.
    • Projects expected to face delays include Cenovus Energy’s (NYSE:CVE) Christina Lake Phase H and its Narrows Lake Phase A; expansion work at Husky Energy's (OTCQB:HUSKF) Sunrise SAGD plant; and PetroChina’s (NYSE:PTR) MacKay River project.
    • Most analysts expect a 10%-15% drop in capex for Canadian energy producers in 2015, with bigger cuts perhaps coming as the year unfolds to rival 2009's 20% capex decline.
    | 31 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.
    | 11 Comments
  • Dec. 9, 2014, 5:25 PM
    • Canada will not impose new carbon emission rules on its oil and gas sector in a time of falling oil prices, Prime Minister Harper tells the House of Commons as international talks begin in Peru to reach a new global agreement on curbing greenhouse gas emissions.
    • Canada’s critical energy sector has been slammed by the recent collapse of world oil prices, and a number of Canadian producers recently have announced plans to cut spending and dividends.
    • Harper’s government, which counts the resource-rich western provinces as its core political base, had said it was prepared to work with the U.S. on environmental rules covering the continental oil and gas sector.
    • Among Canada's top energy firms: SU, ENB, EEP, EEQ, TRP, IMO, CNQ, TCK, CVE, BTE, OTCQX:COSWF, OTCQB:HUSKF
    | 44 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.
    | 27 Comments
  • Oct. 31, 2014, 8:39 AM
    • Canadian Oil Sands (OTCQX:COSWF) reports Q3 net profit fell 65% Y/Y to C$0.18/share, citing lower revenue and foreign exchange-related losses.
    • Q3 sales volume rose to 87,787 bbl/day, up4% Y/Y, but average crude prices fell to C$102.58/bbl from C$112.55 a year earlier, and operating expenses rose to to C$47.73/bbl, up from $46.15.
    • Cuts its annual maximum output target to 100M barrels of oil, down from a previous 104M barrels and an initial forecast of up to 110M barrels.
    • Canadian Oil Sands owns a 37% stake in its main operating asset, Syncrude, with six other companies owning the remainder, including lead operator Exxon Mobil (NYSE:XOM) unit Imperial Oil (NYSEMKT:IMO) and Suncor Energy (NYSE:SU).
    | 6 Comments
  • Jul. 31, 2014, 7:08 PM
    | Comment!
  • Jul. 31, 2014, 6:43 PM
    • Canadian Oil Sands (OTCQX:COSWF) reports declines in Q2 earnings and revenue, but it still beat profit expectations despite the shutdown of two of its main refining facilities.
    • Q2 EPS fell to C$0.36 from C$0.45 in the year-ago quarter, reflecting lower sales volumes and higher royalty charges; revenue fell 15% to C$786M.
    • Q2 operating expenses rose 6% Y/Y to C$418M due to the unplanned outages as well as higher natural gas costs.
    • Sales volumes averaged ~77K bbl/day, down from ~100K bbl/day a year earlier.
    • Cash flow fell 29% to C$240M.
    • Lowered its full-year production outlook to 95M-102M barrels from a previous estimate of 95M-105M barrels.
    | Comment!
  • Jul. 12, 2014, 8:25 AM
    • The problem facing Canada isn't the Keystone pipeline or Pres. Obama or environmentalists - it's the oil sands, and they've got to be cleaned up and the head-in-the-sand denials chased way or the country will be stuck with a "baby seal hunt" image, Diane Francis writes in the Financial Post.
    • The columnist thinks she knows the right person to lead the clean-up: Jeff Immelt - "an American leader with stature in Washington, on Wall Street, in the oil patch and in Silicon Valley" - who said this week that GE will help companies clean up the oil sands.
    • The only way to stop the environmental excuses, Immelt believes, is for the industry to collaborate and voluntarily establish lower emissions targets that would make the oil sands competitive with any other fuel source in the world - without such a promise to provide cleaner energy, "all bets are off."
    • Some related companies: XOM, IMO, SU, RDS.A, RDS.B. ENB, TRP, CNQ, CVE, CVX, COP, BP, KMP, WPZ, TOT, STO, CEO, SNP, PTR, HUSKF, ATHOF, COSWF.
    | 197 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).
    | 1 Comment
  • Jan. 9, 2014, 4:31 PM
    • KKR says it will open its first Canadian office next month in Calgary, the capital of Canada's oil patch, as it seeks to tap into growing demand for private-equity financing in the region and expand its presence in the global energy industry.
    • KKR Director Brandon Freiman, who will relocate from the NYC headquarters to start up the new office, is eyeing investment of $500M to "several billion dollars" over the next five years in upstream oil and gas production, midstream pipelines and related infrastructure as well as energy services businesses.
    • The planned investments will include providing financing instead of outright takeovers, KKR says.
    • Canadian energy names on the radar: SU, IMO, BTE, SOQ, ERF, CVE, COSWF, AAV, BXE, CNQ.
    | 8 Comments
  • Jul. 31, 2013, 8:38 AM
    • Canadian Oil Sands (COSWF.OB), the largest partner in the Syncrude Canada oil sands mine, posts Q2 earnings that missed expectations and announces the retirement of CEO Marcel Coutu.
    • Q2 EPS was $0.45 vs. $0.53 consensus but more than double the $0.21 from a year ago; sales were $921M, up from $740M.
    • Reduces 2013 production outlook for the second time this year, to 100M-104M barrels.
    • Coutu has been at the helm of Syncrude since Aug. 2001.
    | Comment!
  • Jul. 10, 2013, 10:52 AM
    Newmont Mining (NEM -1.1%) agrees to sell its ~6.5% stake in Canadian Oil Sands (COSWF.OB) for ~C$608M ($578M) to a banking syndicate that will then offer the shares to various buyers. NEM is among gold companies that spent big on acquisitions in a decade-long bull market which are now selling assets as gold’s price tumbles.
    | 1 Comment
Visit Seeking Alpha's
COSWF vs. ETF Alternatives
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