|Bid||12.23 x 3000|
|Ask||12.25 x 3200|
|Day's Range||12.06 - 12.37|
|52 Week Range||9.61 - 34.56|
|Beta (5Y Monthly)||1.71|
|PE Ratio (TTM)||5.42|
|Forward Dividend & Yield||0.63 (5.15%)|
|Ex-Dividend Date||Sep 03, 2020|
|1y Target Est||42.83|
(Bloomberg) -- Cenovus Energy Inc. is getting more than just a rival Canadian oil producer with its acquisition of Husky Energy Inc. It’s also shoring up its defenses against an anti-oil sands movement that could get a boost if Joe Biden is elected as the next president of the U.S.Calgary-based Cenovus said Sunday morning it’s reached a C$3.8 billion ($2.9 billion) all-share deal to buy Husky, which is controlled by Hong Kong billionaire Li Ka-shing. Li and his CK Hutchison Holdings Ltd. will own about 27% of the combined firm if the deal goes through.Oil sands companies in Alberta sell their crude at a discount to West Texas Intermediate because export pipelines are usually too full to accept all the oil that producers want to ship. That discount can be steep at times -- $20 a barrel or more -- and is currently more than $10.The situation could get worse if Biden wins the Nov. 3 election and makes good on his promise to rescind the permit granted by President Donald Trump for the development of Keystone XL, the biggest of three major Canadian export pipelines under construction.By acquiring Husky’s refineries in Ohio and Wisconsin, Cenovus will reduce its exposure to that problem. The merged company will be able to refine as much as 70% of its crude directly in the U.S. Midwest, the biggest market for Canadian crude, meaning the company won’t have to sell as much oil locally at depressed prices.“Our firm view is that Keystone is not going to be built,” Jeffrey Craig, an analyst at Toronto-based Veritas Investment Research Corp., said of the proposed 830,000-barrel-a-day line from Alberta to Nebraska. Access to Husky’s heavy-oil refineries is “probably the biggest reason to do this deal,” he said.Investors did not react positively Monday, with Cenovus shares falling nearly 15% at one point. They were down more than 8% to C$4.47 as of 1:46 p.m. in Toronto. Husky shares rose 13% to C$3.57. The acquisition will make Cenovus more like rivals Suncor Energy Inc. and Imperial Oil Ltd., which have larger refining businesses and are therefore less exposed to pipeline risk.As concern about climate change has increased, Canada’s oil sands companies have faced criticism about the carbon emissions produced from mines and steam-injected wells in northern Alberta. In alliance with some indigenous groups, environmentalists have gone to court to stop pipelines and, more recently, appealed directly to banks not to fund projects.The region’s carbon footprint has become an issue for investment firms that are growing more concerned with the environmental and social risks taken by the companies they own. Norway’s massive wealth fund, for example, cut its holdings of Canadian oil sands stocks, including Cenovus and Suncor.For ESG data on Cenovus, click hereEnvironmentalists’ efforts have partly paid off. Keystone XL’s future remains in doubt 12 years after it was first proposed by TC Energy Corp. The Trans Mountain pipeline expansion to Vancouver and Enbridge Inc.’s Line 3 are under construction, but only after years of delays that brought new oil sands development to a near halt.For Cenovus, the Husky deal means that pipeline risk “has been materially decreased,” Chief Executive Officer Alex Pourbaix said on a conference call Sunday. “I’ve been talking to investors for three years, telling people I was optimistic the pipes were going to come.”Two years ago, Alberta’s government was forced to impose output limits on producers when oil sands production overwhelmed pipeline capacity, causing a glut of crude to form in Western Canada that temporarily depressed local prices to discounts as large as $50 a barrel.Those limits are due to be lifted in December after the collapse in oil demand caused by the Covid-19 pandemic prompted the industry to shut in some production.(Updates with share price reaction in seventh paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The Zacks Consensus Estimate for Suncor Energy's (SU) third-quarter bottom line has been revised 22.2% upward in the last seven days.
CALGARY, Alberta, Oct. 21, 2020 (GLOBE NEWSWIRE) -- Suncor will release its third quarter financial results on October 28, 2020 before 8:00 p.m. MT (10:00 p.m. ET). A webcast to review the third quarter will be held on October 29 at 7:30 a.m. MT (9:30 a.m. ET). Representing management will be Mark Little, president and chief executive officer and Alister Cowan, chief financial officer. A question and answer period with analysts will follow brief remarks from management. Trevor Bell, vice president, Investor Relations will host the call.Please note, telephone lines are limited and reserved for those who intend to ask a question. To participate in the conference, go to suncor.com/webcasts.If you are an analyst or media and would like to participate in the Q&A period: * if calling from North America: 1-866-219-5885 * if calling from outside North America: +1-209-905-5918An archive of the webcast will be available on suncor.com/webcasts.Suncor Energy is Canada's leading integrated energy company. Suncor's operations include oil sands development and upgrading, offshore oil and gas production, petroleum refining, and product marketing under the Petro-Canada brand. A member of Dow Jones Sustainability indexes, FTSE4Good and CDP, Suncor is working to responsibly develop petroleum resources while also growing a renewable energy portfolio. Suncor is listed on the UN Global Compact 100 stock index. Suncor's common shares (symbol: SU) are listed on the Toronto and New York stock exchanges.For more information about Suncor, visit our website at suncor.com, follow us on Twitter @Suncor or Living our Purpose.Investor inquiries: Media inquiries: 1-800-558-9071 1-833-296-4570 email@example.com firstname.lastname@example.org