There are 3 articles on this stock available only to PRO subscribers.
- Keystone XL is delayed indefinitely; other pipelines are suffering similar setbacks.
- Oil by rail is the only available and viable transportation option.
- Canexus Corporation offers the most leverage to the oil by rail trend.
- FCF deficit for the company is temporary. Once capital spending winds down and NATO contributes to EBITDA, FCF will move into surplus territory in subsequent years beyond 2015.
- Worst-case scenario, EBITDA from chemical divisions along with current credit facility can absorb any remaining capital requirements attributed to NATO, maintain dividend, and stay within debt covenants.
- With a 25% project contingency, its unlikely NATO will require additional capital to complete the project. Currently, there is no draw on contingency funds or surprises to current revised costs.
- Dividend cut is unlikely. Reflects a long term solution to a short term problem. Their credit facility is the appropriate vehicle to address short term liquidity. Financing already in place.
- With signing of new contracts, hiring of a new CEO, and progress on NATO, there are upside catalysts that will drive share price higher in the near term.
- Canexus has been overly punished due to a temporary execution problem.
- Canexus stock is likely to appreciate by 30% over the next two quarters.
- Several catalysts are expected over the next few weeks.
- The company pays an attractive sustainable long-term dividend.
Tue, Sep. 9, 9:47 AM
- Canexus (OTCPK:CXUSF) says it will resume construction to tie in the Cold Lake pipeline system to the MEG Energy (OTCPK:MEGEF) pipeline after a court ruled to allow the tie-in to proceed (earlier).
- Canexus says it expects to take about two weeks to complete, commission and start up the pipeline system to allow deliveries to its rail terminal operation.
Wed, Sep. 3, 10:53 AM
- Canexus (OTCPK:CXUSF -10.8%) says the crude-by-rail unit train loading expansion at its North American Terminal Operations is ready for commissioning and start-up, but MEG Energy (OTCPK:MEGEF) has refused to allow it to perform work required to tie-in the Cold Lake pipeline system.
- Canexus says it believes MEG has no legal justification for its refusal and says it is taking legal action to enforce all legal rights and remedies to protect its NATO business.
Wed, Aug. 6, 12:43 PM
CXUSF vs. ETF Alternatives
Based in Calgary, Alberta, Canada, Canexus Corporation is a chemical manufacturing and handling company serving customers for more than half a century. We pride ourselves on efficient low-cost operations, strategic growth, quality service and a commitment to Responsible Care through safe,... More
Other News & PR