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Special edition of The Wall Street
Transcript on Canadian Oil
06:26 p.m Nov 13, 1998 Eastern
NEW YORK--(BUSINESS WIRE)--November
13, 1998--The Wall Street Transcript has just
published its annual Canadian Oil issue containing a
23-page focus on the sector. Vital reading for
investors and companies in the sector, it features:
1) An in-depth roundtable discussion featuring John
Clarke of Deutsche Bank Securities, Brian Dutton of
Bunting Warburg, Robert Gillon of John S.
Herold,and Douglas Gowland of First Marathon
Research. Market performance for the Canadian oil
stocks has generally been poor. However, in
comparison to the oil producers, the Canadian gas
producers have had strong performance. Larger
producers have done better, possibly representing a
flight to quality in tough times.
Dutton summarizes the importance of the Canadian
market: "Simply stated, there is more crude locked
up in the oil sands of Alberta than there is oil in all the
fields of Saudi Arabia. The caveat to that statement is
that economic recovery of these reserves occurs only
when world oil prices are sufficiently high enough to
cover the all-in cash operating costs that are generally
in the C$12 to C$13 per bbl range."
Gillon thinks that the M&A market will be "very, very
active. Currently an acquirer gets the probable
reserves, acreage and all of the upside for free and
garners the proven reserves at a discount to what it
would pay on an outright purchase of production."
Dutton agrees: "Looking at the U.S. dollar versus the
Canadian dollar exchange rate, there is a big 'For
Sale' sign hanging above the oil and gas assets in
Canada. Short-term oil properties that are for sale
have a lower "sticker" price, but longer term, we
believe the M&A focus will be on the gas side."
Discussing valuation for Canadian Oil stocks,
Gowland says: "We focus on cash flow because
there aren't any earnings, by and large, and
particularly in the down years, in the low commodity
price years, earnings are minimal to nonexistent to
quite negative."
Gillon's overall view for investors is that "from a
long-term viewpoint, it's a wonderful time for a value
investor to accumulate selected Canadian oil stocks."
Other topics discussed are the Alberta rules, the
expansion of the pipeline system and storage levels,
and the distinguished panel recommends some
specifically strong companies and some standouts in
the undervalued category.
2) A confidential review of management performance
at 17 Canadian Oil companies by analysts, money
managers and industry experts. Two CEOs are
singled out for praise. Gwyn Morgan of Alberta
Energy (NYSE:AOG), who is said to have done "a
masterful job of getting the company situated so it
can take advantage of low oil prices." Richard
George of Suncor Energy (NYSE:SU), is believed to
be "one of the few who can integrate operational
objectives with shareholder objectives." One CEO is
criticized for being a "go-with-the-wind type, he
won't stick to his guns, stick to his strategies." Vital
insight for investors.
Companies discussed are Amber Energy
(TSE:AMB), Anderson Exploration (TSE:AXL),
Baytex Energy (TSE:BTEa), Berkley Resources
(VSE:BKS), Bonavista (TSE:BNP), Canadian
Natural Resources (TSE:CNQ), Canadian
Occidental (Amex:CXY), Crestar (TSE:CRS),
Cypress (TSE:CYZa), Gulf Canada (GOU),
Newport (TSE:NPP), Northern Border
(NYSE:NBP), Northrock Resources (TSE:NRK),
PanCanadian Petroleum (TSE:PCP), Paramount
Resources (TSE:POU), Penn West Petroleum
(TSE:PWT), Petro-Canada (NYSE:PCZ), Poco
Petroleum (TSE:POC), Probe Exploration
(TSE:PRX), Ranger Oil (NYSE:RGO), Remington
Energy (TSE:REL), Renaissance Energy (TSE:RES),
Rio Alto Exploration (TSE:RAX), Shell Canada
(TSE:SHC), Talisman Energy (NYSE:TLM),
TransCanada Pipeline (NYSE:TRP), Tri Link
Resources (TSE:TLR), Ultramar Diamond
(NYSE:UDS)
For a copy of this complete issue, which also
contains interviews on other topics with analysts,
money managers and CEOs, call (212) 952 7433 or
use the web at
secure.addy.com.
There is a $175 charge for the issue. The Wall Street
Transcript does not endorse the views of any
interviewee nor does it make stock
recommendations.
The Wall Street Transcript is a premier weekly
investment publication serving serious long-term
investors for over 35 years. The Transcript publishes
industry roundtables and interviews with Wall Street
analysts, money managers and company CEOs, and
is read by top money managers, brokers and
individual investors. For subscriptions information call
(800) 246 7673.
Copyright 1998, Business Wire |
