Unauthorized distribution, transmission or republication strictly prohibited. The takeover deal comprises Painted Pony’s properties in Northeast British Columbia areas of Blair, Daiber, Kobes and Townsend. Comments may take up to an hour for moderation before appearing on the site.
Purchases from LNG proponents in the Montney have already occurred. You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. This advertisement has not loaded yet, but your article continues below. Farther from the Pacific Coast, NuVista Energy, Advantage Oil & Gas, Birchcliff and Kelt Exploration are also prospects, he said. . “If the price keeps improving, then you will look to do more opportunities.”. Painted Pony’s assets are said to well complement the currently Zacks Rank #3 (Hold) Canadian Natural’s diversified portfolio. Painted Pony Energy Ltd. (PONY.TO) Toronto - Toronto Delayed Price. CALGARY - Shareholders in Calgary-based Painted Pony Energy Ltd. have approved its sale to much larger Canadian Natural Resources Ltd. for 69 cents per share. Weaker prices for gas in Western Canada during the past three years and a recent drop in prices for natural gas liquids led to lower-than-expected cash flow levels, depriving Painted Pony’s key assets of money needed to finance development.
For Canadian Natural, which produced 1.165 million barrels of oil equivalent (boe) per day in the second quarter, the deal bolsters its gas assets and production base in key operating areas, company president Tim McKay said in a statement. Chris Varcoe is a Calgary Herald columnist. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. The $461-million acquisition of Painted Pony Energy by Canadian Natural Resources on Monday is a prime example of the opportunities in the gas business — for those who have the financial might to capitalize on them.
“A lot of these projects are still a little ways off.”.
Painted Pony last month said it’s selling Saskatchewan oil properties to become a “pure-play” Montney producer.
Moreover, the integration between the two companies is expected to make a significant impression on Canadian Natural’s natural gas assets and production base in its core operating areas as Painted Pony’s land and production are located in the same regions. Painted Pony Energy (PONY-T) November 21, 2019 They have significant assets in the core area that will benefit from LNG. The company boasts a diversified portfolio of crude oil (heavy as well as light), natural gas, bitumen and synthetic crude oil (SCO).
Visit our Community Guidelines for more information and details on how to adjust your email settings. “It’s a little bit shocking.”. Painted Pony has said three years of weak gas prices and more recent declines in prices for the petroleum liquids produced with the gas led to liquidity problems and forced it to commence a confidential process to enhance shareholder value, resulting in the Canadian Natural offer. Apache’s departure adds challenges to a project that has faced prior delays with ownership changes. Unauthorized distribution, transmission or republication strictly prohibited.
If you don't see it please check your junk folder. “Others just see it as possible upside.”. The buyer, best known for its heavy oil and oilsands production, has said the purchase will allow it to grow its position in the liquids-rich Montney natural gas region of northeastern B.C.
© 2020 Calgary Herald, a division of Postmedia Network Inc. All rights reserved. We may see more upside in 2021. Painted Pony’s philosophy is to grow through production development drilling for natural gas and natural gas liquids. Harris said he wasn’t worried about the deal diluting Painted Pony shares, arguing the transaction offers many benefits, such as high-quality reserves on nearby land that the company knows well and can drill at relatively low costs. More On This Topic Montney-focused producers comprise three of the top five Canadian energy stocks of 2014, even as North American gas prices have fallen in recent weeks on a cooler-than-expected summer, paring some of the gains. “The prices have improved and a big part of it is because of the U.S., with the decrease in drilling in the U.S., (there’s) less associated gas in the system. He expects U.S. gas prices to average between US$3 and $3.50 per mmBTU next year, with western Canadian prices about a dollar lower, although still “much stronger than we’ve seen in a couple of years.”. Companies are now recouping costs on Montney wells in less than a year in some cases, compared with 24 months previously, McCrea said. Facing these challenges, Painted Pony initiated a review process and accepted the offer from Canadian Natural. This story, originally published on the Calgary Herald’s website March 17, stated Invesco was Painted Pony’s largest shareholder with a more than nine per cent stake in the company. We have enabled email notifications—you will now receive an email if you receive a reply to your comment, there is an update to a comment thread you follow or if a user you follow comments.
Crew is trying to sell its Princess oil property in Alberta and is budgeting most of its capital spending this year on the Montney. If you do not, click Cancel. Postmedia is committed to maintaining a lively but civil forum for discussion and encourage all readers to share their views on our articles. The ongoing plunge in oil and natural gas prices due to the coronavirus-induced reduced demand dragged down energy stocks to record lows, prompting bigwigs to increase their holdings by acquiring smaller rivals at a relatively lower price. “Canadian natural gas prices in the last couple of years were at over 20-year lows,” Ward said. If you wish to go to ZacksTrade, click OK. Painted Pony plans to buy UGR Blair Creek Ltd., a privately held natural gas producer in northeastern British Columbia, for $229.6-million in shares, plus $47 million in debt. Their average twelve-month price target is C$0.68, predicting that the stock has a possible downside of 1.05%. View from Alberta: Is oil by rail a sea change or a temporary bridge? Canadian Natural Resources Limited (CNQ - Free Report) recently informed that it has completed its acquisition of all the issued and outstanding common shares of Painted Pony Energy Ltd. "Painted Pony is looking more attractive than ever now," said AltaCorp Capital analyst Jeremy McCrea, who has a "buy" on the stock and on Tuesday raised his price target to $19 a share, up from $17. Painted Pony produced about 279 million cubic feet per day of natural gas and 4,400 barrels per day of petroleum liquids in the second quarter, compared with Canadian Natural’s output of 1.46 billion cubic feet per day of gas and 922,000 bpd of crude oil and liquids in the second quarter. Visit www.zacksdata.com to get our data and content for your mobile app or website. What is Painted Pony Energy stock price?
CNRL's Horizon oilsands mine.
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