Price falls push gas consolidation
Canadian hunter bid?
Claudia Cattaneo -- Financial Post
The collapse in oil and gas prices is also depressing the stocks of natural gas producers, contributing to ongoing sector consolidation driven largely by U.S. competitors and utilities with higher stock valuations.
Rumours about a transaction enveloped Canadian Hunter Exploration Ltd. for the second straight day yesterday. Canadian Hunter's stock gained about 15% in the past two days, closing yesterday at $35.70, up 70¢.
Analysts said Canadian Hunter, which is a natural gas producer with no debt, would fetch around $3-billion if the buyer uses the same parametres applied in the US$4.6-billion takeover of Anderson Exploration Ltd. by Devon Energy Corp. of Oklahoma City two weeks ago.
Alberta Energy Co., a company that has a history of launching hostile bids on companies whose stocks have declined, could be pursuing Canadian Hunter, said Wilf Gobert, research director at Peters & Co. in Calgary. However, AEC has recently been promoting its oil business and downplaying its natural gas exposure, and a takeover of Canadian Hunter would lead to even more natural gas production, he said.
Husky Energy Inc., one of Canada's largest integrated oil companies, also admitted Thursday it is working on "potential transactions" and has held discussions with unnamed parties.
"I believe that the consolidation will continue," said Rick Giesen, senior portfolio manager at Munder Capital Management, a U.S. mutual fund company with interests in Canadian energy companies.
nationalpost.com
Charts:
Alberta Energy Co
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Canadian Hunter Exploration Ltd.
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Husky Energy Inc.
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