Canada’s largest oil and gas company expects production to rise by more than 13% next year and spending to fall by more than $1 billion.
Canadian Oil Sands Mining News
The company has named Sandy Martin as its new chief executive officer.
The Canadian oil giant lowered capital spending plan to between $6bn and $6.5bn from a November estimate of $6.7bn to $7.3bn.
After months of hostile rhetoric, the two Calgary-based companies have reached a takeover agreement.
The company is asking Suncor to disclose details of how shareholders reacted to its bid before last week’s deadline had to be extended until Jan. 27.
Canadian Oil Sands is a weak company that has consistently missed many quarterly targets and is focused on one of the least attractive areas of the oil patch at current prices.
The takeover bid expires on Friday.
“Hope is still not a strategy,” Suncor wrote in a letter to Canadian Oil Sands’ shareholders, stressing there was “little time” left.
A hard cap on oilsands emissions was the product of secret negotiations between four top oilsands companies and four environmental organizations.
The company, currently the target of a $4.3 billion takeover bid by Suncor, unveiled a pared-back capital budget that cuts spending by 20% year-over-year to $295 million in 2016.
The poison pill provision must expire by Monday, Jan. 4, 2016.
Canada's dominant oil sands player, however, plans to spend about $900 million more next year.
Suncor, Canada's dominant oil sands player, telling COS shareholders the firm has a record of “underperformance, financial challenges,” and vulnerability to low oil prices.
Suncor steeped up its hostile Cdn$4.3bn bid for COS by asking the Alberta Securities Commission to strike down the target’s rights plan to prevent a takeover.
The company said Suncor Energy’s hostile takeover offer was "undervalued, opportunistic and exploitive."
"Disappointed but not surprised"
Canadian Oil Sands has been labouring under low oil prices.
The remaining 55 pipelines affected by a suspension order must stay closed until the company can demonstrate they're safe.
The largest synthetic crude oil processing facility in Canada is slowly recovering from a fire that damaged equipment and communication lines over the weekend.
The incident adds to the firm's mounting challenges, including swinging to a loss, growing debt, unplanned equipment outages and Moody’s Investors Service recent cut of the company's credit rating.
According to TD's latest report, real GDP growth in Alberta will inch forward by only 0.5% this year before speeding up to 1.8% in 2016.
According to the Conference Board of Canada, the province faces more than just a slowdown.
The vote of the full plenary was prompted earlier this month when the EU's environment committee rejected a deal worked out after more than two years of lobbying by Canada.
Ontario and Alberta agree the controversial $12bn Energy East pipeline is a “nation-building” exercise and said they'd work together on the issue.