+ A lie is like a cat: You need to stop it before it gets out the door or it’s really hard to catch. – Charles M. Blow
+ Terrorism is the tactic of demanding the impossible and demanding it at gunpoint. – Christopher Hitchens
KUDOS
+ to Imperial Oil for its donation of five paintings to the National Art Gallery of Canada; works by Lawren S. Harris (1885-1970), Paul Peel (1860-1892), Prudence Heward (1892-1947), Kathleen M. Morris (1893-1986) and A.J. Casson (1898-1992)
+ to inductees, 38th annual, to the Canadian Business Hall of Fame: W. Edmund Clark, Former President and Chief Executive Officer, TD Bank Group, Rick George, Partner, Novo Investment Group and Former President and CEO, Suncor Energy Inc. , Frank Hasenfratz, Chairman, Linamar, Linda Hasenfratz, CEO, Linamar, Gordon M. Nixon, Former President, CEO and Director, RBC
GLOSSARY
+ AER - Alberta Energy Regulator
+BBL – barrel
+ BBLS/D – barrels per day
+ BOE – barrel of oil equivalent
+ Brent – North Sea crude benchmark price
+ CAPP - Canadian Association of Petroleum Producers
+ CBD – Central Business District
+ CCAA – Companies’ Creditors Arrangement Act
+ COSIA - Canada's Oil Sands Innovation Alliance
+ CREB - Calgary Real Estate Board
+ FERC – U.S. Federal Energy Regulation Commission
+ GJ - gigajoule
+ GOA - Government of Alberta
+ GTA – greater Toronto area
+ IPO – Initial Public Offering
+ JV – Joint Venture
+ KW – kilowatt (one thousand watts)
+ LEED – Leadership in Energy and Environmental Design
+ MCF – thousand cubic feet
+ MCF/D – thousand cubic feet per day
+ MOU – Memorandum of Understanding
+ MW – megawatt (1 million watts)
+ NAFTA – North American Free Trade Agreement
+ NEB – National Energy Board
+ NGLs – natural gas liquids
+ P3 – Public Private Partnership
+ PADD – U.S. Petroleum Administration for Defense Districts
+ PSAC – Petroleum Services Association of Canada
+ RECA – Real Estate Council of Alberta
+ REIT – Real Estate Investment Trust
+ RFP – request for proposals
+ RFQ – request for qualifications
+ SAGD – steam assisted gravity drainage
+ sub – subsidiary
+ sub. – subordinated
+ tic toc – we’ll see …
+ UDI – Urban Development Institute
+ WTI – West Texas Intermediate crude benchmark price
this site is refreshed with a new issue every Tuesday morning
updated December 8, 2015
TODAY'S HEADLINES
AER to continue without change | Bruce Power $8 billion upgrade | climate conference news | CP to up is bid | crude at 6 yr. low | Enbridge started Line 9 | first oil at West Ells | International Hotel sold to Minto | Korn Ferry buys Hay | Laracina taken over by CPPIB | Longview gallery opening | OPEC fails to be smart again/still | Suncor extends its offer for COS | Tuscany strategic review + Ron Hymers interview | upcoming events & corp. meetings + climate change, infrastructure, oil sands + REIT news + this week’s financings + executive and board appointments >>>>
CONVERSATIONS
Mark Kolke interviews interesting people. He seeks a glimpse of what drives them, how they see the world and what they see in Calgary's future.
This week's conversation with Ron Hymers, Partner at Forefront Advisors Group
Last week's conversation with Dave Kalinchuk, Economic Development Manager, Rocky View County
+ BTB REIT closed $25 million convertible debt financing
+ BTB REIT agreed to sell two properties in Quebec [Boucherville and St.Bruno] for $7.6 million
+ Mohawk Medical Properties REIT acquired a 100% leased medical office building in Airdrie; terms not disclosed
OIL SANDS NEWS
+ Athabasca Oil Corporation announced its 2016 CapEx Budget is $91 million
+ Canadian Oil Sands Limited announced its 2016 CapEx Budget is $295 million
+ Laracina Energy Ltd.’s major shareholder, the Canada Pension Plan Investment Board, has taken control in a debt repayment and shares for debt arrangement under CCAA protection; no news yet on CPPIB’s plans for those leases of a sale or JV basis … tic toc …
+ Suncor Energy Inc. extended its takeover bid for Canadian Oil Sands Limited to Jan. 8/2016
+ Sunshine Oilsands Ltd. produced first oil at its West Ells project
INFRASTRUCTURE / P3
+ Bruce Power unit reached an agreement with IESO for long term production of 6,300 megawatts; will expand and refurbish its nuclear facility at Kincardine, Ontario (home to Wiarton Willie) at a cost of $8 billion, to extend life of plan to 2064
+ Royal Alberta Museum in Edmonton has closed to facilitate a move to the new $375.5 million downtown Edmonton facility on the site of the former main Post Office
+ Athabasca Oil Corporation announced its 2016 CapEx Budget is $91 million
+ Bank of Canada announced it will maintain its overnight target rate at ½ of 1%
+ BC Government new $100 million venture fund for startups being announced today
+ BlackPearl Resources Inc. announced its 2016 CapEx Budget is $15 million
+ Canada and Mexico won a major trade ruling from the WTO on ‘country of origin’ labelling; US$1 billion in damages but more importantly, a finding the US policy was contrary to NAFTA and will be discontinued
+ Canadian Oil Sands Limited announced its 2016 CapEx Budget is $295 million
+ Canadian Pacific’s hostile takeover bid for Norfolk Southern hit a snag; offer was rejected by Norfolk Southern by CP vows to fight on; reports are circulating that CP will up its bid to more than US$40billion ahead of securing a regulatory green light .. tic toc …
+ Canamax Energy Ltd. completed its going-private transaction led by Edge Natural Resources LLC and management
+ Circa Enterprises Inc. completed its acquisition of Alberta Computer Cable
+ current energy prices – live link to Bloomberg energy prices ; crude prices slumped 6% yesterday, supply glut continues after OPEC meeting failed to reduce production targets
+ Enbridge’s newly reversed Line 9B is reported flowing and delivering crude; capacity of the line is 300,000 bbl/day; protesters had chained themselves to a valve site requiring a temporary shutdown while police did their duty …
+ Ensign Energy Services Inc. announced its 2016 CapEx Budget is $60 million
+ Fortis Inc. agreed to acquire Aitkin Creek Gas Storage Facility from Chevron Canada Properties Ltd. for US$266 million
+ Iron Tank Resources Corp. agreed to acquired Spriza Inc. for $2,750,000
+ Korn Ferry closed its acquisition of Hay Group; terms not disclosed
+ Laracina Energy Ltd.’s major shareholder, the Canada Pension Plan Investment Board, has taken control in a debt repayment and shares for debt arrangement under CCAA protection; no news yet on CPPIB’s plans for those leases of a sale or JV basis … tic toc …
+ Laura’s Shoppe (P.V) Inc. (operates Laura, Laura Petites, Laura Plus and Melanie Lyne stores) completed its restricting and emerged from CCAA protection; 20 store closures overall, renovations and new concepts going forward
+ MEG Energy Corp. announced its 2016 CapEx Budget is $328 million
+ Minto Property acquired the International Hotel from Libin led ownership group; terms not disclosed
+ Notley Government will NOT alter the structure of mandate of the Alberta Energy Regulator as earlier threatened
+ November job losses in Alberta – 15,000 with no good news on the horizon; total job losses across Canada in November of 35,700
+ OPEC members, like herding cats, failed to agree on any plan to reduce output in support of price stability
+ ORLEN Upstream Canada Ltd. closed its takeover of Kicking Horse Energy Inc.
+ Pengrowth Energy Corporation closed its $78 million disposition of Jenner area assets
+ Shell Chemical LP announced expansion of its Geismar, Louisiana facility, making it the largest AO producer in the world – adding 425,000 tonnes of capacity
+ Suncor Energy Inc. extended its takeover bid for Canadian Oil Sands Limited to Jan. 8/2016
+ Sunshine Oilsands Ltd. produced first oil at its West Ells project
+ Supremex Inc. completed its acquisition of Premier Envelope
+ Titanium Transportation Group closed its acquisition of operations and real estate of ProNorth Transportation for $8.3 million
+ TransCanada Corporation exercised its right to acquire an additional interest in Bruce Power from Ontario Municipal Employees Retirement System for $236 million; each will hold 48.5%
+ Tuscany Energy Ltd. retained advisors and initiated a strategic review process to consider options
+ Yoho Resources Inc. agreed to sell a portfolio of Duvernay/Kaybob assets for $50 million
THIS WEEK IN FINANCINGS
- proposed & closed
+ Algonquin Power & Utilities Corp. closed $150 million equity financing
+ Blacksteel Energy Inc. closed $219,800 final tranche of its convertible debt and equity financing
+ Brookfield Infrastructure is on the market to raise $125 million in equity
+ BTB REIT closed $25 million convertible debt financing
+ CI Financial Corp. closed $450 million debt financing
+ International Frontier Resources Corporation closed $1,105,000 equity financing
+ Marksmen Energy Inc. is on the market to raise $800,000 in equity
+ Perpetual Energy Inc. is on the market to raise $25 million by a rights offering
+ Pine Cliff Energy Ltd. closed $3 million equity financing
+ PrairieSky Royalty Ltd. closed $680 million equity financing
+ Rogers Communications Inc. is on the market to raise US$1.0 billion in debt
+ Seven Generations Energy Ltd. secured $850 million credit facility
+ TELUS Corporation is on the market to raise $1.0 billion in long term debt
+ TransAlta Renewables Inc. closed $172.5 million equity financing
CLIMATE CHANGE / LEED / RENEWABLE ENERGY
+ Canada committed to invest $50 million in a G7 Climate Risk Insurance scheme. Really? Mitigating losses and backstopping others was not, as I understood it, the purpose of the Climate Change Talks at COP21 in Paris. Here’s the interesting part, the press release said $50 million, but the detail with it shows our Prime Minister has promised to give away $2.65 billion, so I guess the $50 million is just the tip of some melting iceberg. Seems to me he should double-check how much we have in the piggy bank before he gives so much away, especially when he’s so far failed to obtain any guarantees of reduced emissions from anyone. And now $150 million to support renewable energy investments in Africa? Seriously, when have first nations in Canada without clean water, we’re funding ‘solar’ in Africa? While appreciate many Africans have no power, many Canadians have undrinkable water, so where are our priorities Mr. Trudeau … tic toc …
+ more from COP21; fourth day of the COP21 United Nations Climate Change Conference on Thursday had the theme of Buildings Day and saw the launch of the Global Alliance for Buildings and Construction, designed to scale up low-carbon development in the sector. Eighteen countries including Austria, Brazil, Cameroon, Canada, Finland, France, Germany, Indonesia, Japan, Mexico, Morocco, Norway, Senegal, Singapore, Sweden, Tunisia, Ukraine, United Arab Emirates, the US, and over 60 organisations are part of the alliance. The World Green Building Council (WorldGBC) is a key member of the initiative and committed to a ‘global market transformation’ to achieve both net zero carbon new building and the energy efficiency retrofit of existing stock by 2050
+ Export Development Canada has established a Green Bond; US$300 million is being raised by EDC as debt. The press release was confusing, but it appears they will use the funds to support exporters of ‘sustainable’ goods and services …
INTERESTING REAL ESTATE NEWS, other places
+ American Homes 4 Rent agreed to acquired American Residential Properties for US$1.5 billion; merged entity will run 47,000 homes in 22 states
+ Canderel Management and KingSett Capital Real Estate Growth LP No.5 acquired 1243 Islington Ave. in Toronto; 12-storey, 110,000 sq. ft. building in Bloor-Islington area; terms not disclosed
+ JLL agreed to acquire Corrigo Inc., a cloud-based facilities management solutions business; terms not disclosed
+ Oxford Properties Group closed US$1.3 billion financing for its first residential tower in its Hudson Yards project in Manhattan; first building is 70-storey, 960,000 sq. ft. LEED Gold residential building
