Today, 9:15 AM
Mon, Oct. 5, 5:49 PM
- Investors rushed back into Canadian oil companies today in hopes of picking up the next takeover target following news of Suncor's unsolicited $4.3B bid for Canadian Oil Sands.
- MEG Energy (OTCPK:MEGEF) jumped 22% on speculation it could be the next in line to be taken over, perhaps by Imperial Oil (NYSEMKT:IMO), which has been considered a possible suitor for Canadian Oil Sands.
- Penn West (NYSE:PWE) also surged 22% as investors "clearly are positioning themselves into the next potential target, and both of them [MEG and PWE] make some sense,” says TriVest's Martin Pelletier. "They both have stretched balance sheets, both have been beaten up in the market, and they are a heck of a lot cheaper than last year.”
- Other oil sands stocks also climbed following the Suncor offer: CVE +3.3%, OTCPK:ATHOF +14.5%, CNQ +8.8%.
Fri, Oct. 2, 10:48 AM
- Penn West's (PWE -0.2%) latest deal to dispose of its stake in the Weyburn oil field in Saskatchewan for C$205M brings the total sold this year to C$810M, beating the company's stated goal but not enough to keep debt in check, according to analysts at Desjardins Capital and Dundee Capital.
- Dundee's Brian Kristjansen believes PWE will need to sell one of its "jewels" if it wants to survive, most likely the Viking tight oil asset in Saskatchewan, which generates high returns and may be worth C$800M and bring PWE’s total asset sales to at least C$1.6B.
- PWE's debt remains “a significant headwind,” at more than 6x cash flow, Desjardins says.
Thu, Oct. 1, 8:33 AM
- Penn West Petroleum (NYSE:PWE) agrees to sell its non-operated 9.5% working interest in the Weyburn unit in Saskatchewan for $205M, to be used toward debt reduction.
- PWE also cuts its FY 2015 production guidance o 84K-88K boe/day from its earlier outlook for 86K-90K, and continues to expect operating costs at $19.25-$19.75 per boe; its planned capital budget remains at $500M.
- PWE says it will have raised ~$810M in total proceeds this year through its asset disposition program upon completion of the Weyburn sale, surpassing its goal of $650M.
Tue, Sep. 15, 8:54 AM
- Penn West Petroleum (NYSE:PWE) agrees to sell its properties in the Greater Mitsue area of central Alberta for C$192.5M.
- With the sale, PWE says it will have raised $605M in proceeds YTD through its non-core asset disposition program; since the end of Q2 2013, the company has divested ~34K boe/day of non-core assets for $1.7B in proceeds, which has reduced debt by ~$1.4B, or more than 40%.
- The Mitsue properties averaged 4,500 boe/day of production during H1 2015.
Tue, Sep. 8, 9:58 AM
- Penn West (PWE -3.4%) says it received a continued listing notice from the NYSE regarding the price of its common stock because the average closing price of its common stock was less than $1/share over a consecutive 30 trading day period.
- PWE says it will evaluate all available options in order to regain compliance, and will notify the NYSE that it intends to cure the current price deficiency.
- Last week, PWE said it would suspend its dividend and lay off 400 employees as it seeks to sell assets.
Tue, Sep. 1, 7:14 AM
- Penn West (NYSE:PWE) says it will lay off 35% of its workforce, suspend its dividend and cut its 2015 capital budget in an attempt to cope with weak oil prices.
- PWE now forecasts ~C$500M (US$380M) in capital spending, down from its already reduced budget of C$575M from late July and its original spending plan of C$840M.
- PWE says it expects the dividend suspension, effective after the Oct. 15 payout, to save C$20M; in March, the company cut slashed its quarterly dividend to C$0.01/share from C$0.14.
- The job cuts, most of them effective immediately, tare expected to save ~C$45M/year.
- PWE also cuts its 2015 production forecast to 86K-90K boe/day of oil from 90K-100K boe/day.
Thu, Jul. 30, 6:48 AM
Thu, Jul. 30, 6:39 AM
Wed, May 27, 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.
Tue, May 26, 8:58 AM
- Penn West Petroleum (NYSE:PWE) announced some relief from its creditors yesterday via an agreement that ensures holders of $650M worth of senior notes will be repaid with the proceeds from any asset sales in the next two years.
- PWE also said it had sold another $97M worth of assets, which will be used to repay the notes, which means the company has sold ~$1.4B worth of assets since Dave Roberts became president and CEO last June.
- PWE's "over-leveraged position has clearly weighed on its share price over the year, however with debt waivers signed, continued asset dispositions, and a strong underlying hard asset... we’ve likely seen the bottom for the share price,” AltaCorp analyst Jeremy McCrea says.
Thu, May 14, 11:15 AM
- Penn West Petroleum (PWE -0.4%) is planning to sell more of its assets and renegotiate its debt in an attempt to shore up its balance sheet and boost its stock price, President/CEO Dave Roberts told the company's annual meeting yesterday.
- Roberts also said PWE will “vigorously fight” six Canadian lawsuits and one in the U.S. relating to the accounting scandal that was discovered and disclosed in July.
- "We’re not out of the woods as an industry yet though we can see the flickers of a recovery on the horizon,” Roberts said.
- Shareholders voted 73% in favor of PWE’s proposed approach to executive compensation, a level of support that some say is low for Canadian corporations.
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.
Thu, Apr. 30, 8:29 AM
Thu, Apr. 30, 6:39 AM
Tue, Apr. 14, 3:38 PM
- Penn West Energy (PWE +9.9%) agrees to sell an 8.5% gross overriding royalty in its working interests in part of its Viking resource play in Saskatchewan plus some of its existing royalties and mineral title lands located in western Canada through a variety of plays to Freehold Royalties (OTCPK:FRHLF) for C$321M.
- PWE says the sale will reduce its senior debt and represents ~50% of its commitment to offer up to $650M in proceeds received from asset dispositions to prepay outstanding principal amounts on its senior notes.
PWE vs. ETF Alternatives
Other News & PR