The race to build natural gas export terminals on Canada’s Pacific Coast is inspiring another competition as producers including Painted Pony Petroleum Ltd. position themselves as potential takeover targets.
Developers of the gas-rich Montney shale that straddles Alberta and British Columbia are among the best-performing Canadian energy stocks this year, including Painted Pony, Crew Energy Inc. and Birchcliff Energy Ltd. Regulators estimate the Montney, the supply source closest to the sites of proposed LNG terminals, contains 145 years worth of Canadian gas consumption.
Warren Buffett’s BNSF Railway Co. and Canadian Pacific Railway Ltd. face a June 27 deadline to say how they will clear a backlog of grain shipments that has some farmers fuming over rotting wheat and late deliveries.
The U.S. Surface Transportation Board ordered the railroads to outline by then how they will deal with service disruptions, including a timeline for doing so, and to subsequently provide weekly updates about their progress.
Growth prospects for smaller oil- sands producers including BlackPearl Resources Inc. and Southern Pacific Resource Corp. are fading as political wrangling over the Keystone XL pipeline and rising U.S. supply slow deals in the Canadian energy industry.
Shareholder activism is likely to gather momentum in the Canadian energy industry in the coming months, sparked by some poor stock performance, the success of past campaigns and growing support from large institutional investors.
Money managers, as well as the proxy firms that help activists and targeted companies navigate these battles, say that a stronger economy has also given activists the financial firepower they need to buy the large corporate stakes required to push for control.
Canadian exports of crude oil by rail rose 83 percent in the last quarter of 2013 from the same period a year earlier, Canada’s National Energy board said on Monday.
With oil sands producers scrambling to find alternatives for congested pipelines, crude-by-rail exports jumped to 146,047 barrels per day in the final quarter, from 79,763 bpd in the same period of 2012.
By Zacks Investment Research:
With decent levels of growth both in the U.S. and abroad, many cyclical sectors have rebounded quite strongly in 2013, with transports leading the way in this regard. This shouldn’t be too surprising to many investors, as this important market segment has a history of leading stocks out of sluggish market environments, and this recent rally has been no different.