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Canadian Oil Sands Ltd. (COSWF)

- OTCQX
  • Fri, May 15, 2:45 PM
    • Canada says it is committing to cut greenhouse gas emissions by 30% below 2005 levels by 2030, partly by introducing new regulations on its oil and gas sector.
    • Environment Minister Aglukkaq says Canada will cut its emissions to 515 metric megatons by 2030 from 726 metric megatons in 2013; earlier this week, Ontario - Canada’s most populous province - set its own 2030 target of 112 megatons, which would represent a 46% cut from 2005 levels.
    • To meet the new target, Canada will develop regulations to cut methane emissions from the oil and gas sector, such as industrial leaks and gas flares, as well as new rules to control emissions from the electricity and chemical sectors, including from nitrogen fertilizers.
    • Relevant tickers: SU, ENB, TRP, IMO, CNQ, CVE, TCK, TAC, OTCQB:HUSKF, OTCQX:COSWF
    | 37 Comments
  • Thu, May 7, 6:25 PM
    • Canadian oil producers plunged for a second straight day as "all bets are off" after election results in Alberta raised concerns over the possibility of higher taxes for the companies.
    • Among today's losers: SU -2.6%, OTCQB:HUSKF -5.2%, GTE -5.8%, PWE -5.7%, IMO -1%, CVE -1%, OTCQX:COSWF -3.4%, OTCPK:MEGEF -5%.
    • COSWF is among the most exposed to a potential hike in royalties and stricter environmental policies, while electricity supplier TransAlta (NYSE:TAC) would suffer from the new government’s vow to shut coal plants sooner than planned, according to analysts at BMO Nesbitt Burns and RBC Dominion.
    • Advice is split on owning stocks of companies that transport and process fuels in Alberta; Raymond James says stocks such as TransCanada (NYSE:TRP) and Enbridge (NYSE:ENB) are less directly exposed to reduced investment in the sector, but RBC advises to sell pipeline and midstream companies with operations in Alberta.
    • Analysts also are divided about how much producers with oil refineries, such as SU and IMO, could offset losses from potentially higher royalties by boosting processing of crude in Alberta, a move pro-labor NDP has pledged to support.
    | 40 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.
    | 59 Comments
  • Wed, May 6, 7:38 AM
    • In a stunning election result, voters in Canada's energy-rich Alberta province swept aside the four-decade hold on power by the ruling Progressive Conservative Party and elected an New Democratic Party majority government that wants to raise corporate taxes and increase oil and gas royalties.
    • NDP leader Rachel Notley - who has vowed to raise the corporate tax rate to 12% at a time energy companies are reeling from layoffs and project cancellations amid weaker oil prices - is expected to succeed Jim Prentice as Alberta’s premier.
    • Notley has said she would not lobby for the proposed Keystone XL pipeline to link Alberta’s oil deposits to refineries in Texas, and that she is against the Northern Gateway pipeline from Alberta to the British Columbia coast.
    • She also has promised another review of oil royalties at a time other oil producing areas around the world that are also struggling with low oil prices are expected to make their terms more appealing.
    • Relevant tickers: ENB, SU, TRP, IMO, CNQ, CVE, OTCQB:HUSKF, OTCQX:COSWF, XOM, BP, RDS.A, RDS.B
    | 140 Comments
  • Thu, Apr. 30, 6:58 PM
    • Canadian Oil Sands (OTCQX:COSWF) reports a Q1 net loss and announces further cuts in its 2015 capital spending plan to cope with the sharp drop in crude oil prices.
    • COSWF says it lost C$186M, or C$0.38/share, in the quarter, citing the decline in crude prices and a weaker Canadian currency; a year ago, it posted a net profit of C$172M, or C$0.35/share.
    • Cash flow fell 78% to C$76M in Q1, down from C$357M a year ago; current net debt is C$2.2B and poised to peak in Q2 before declining later in the year.
    • The company also cuts its FY 2015 capital spending budget by nearly 5% to C$429M from its previous plan to spend C$451M and an initial budget of C$564M.
    | 3 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).
    | 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.
    | 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
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  • 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!
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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