+ “To residents affected by the wildfires: We’ve lost about 2,400 structures, but we saved almost 25,000. It’s not yet safe to return. But it will be made safe. It will be a home you return to. All of Alberta will have your back until that work is done.” -Premier Rachel Notley
GLOSSARY
+ AEMERA – Alberta Environmental Monitoring Evaluation and Reporting Agency
+ AER - Alberta Energy Regulator
+ `BBL – barrel
+ BBLS/D – barrels per day
+ BOE – barrel of oil equivalent
+ Brent – North Sea crude benchmark price
+ CapEx – capital expenditures
+ CAPP - Canadian Association of Petroleum Producers
+ cap rate – capitalization rate
+ CBD – Central Business District
+ CCAA – Companies’ Creditors Arrangement Act
+ CEAA – Canadian Environmental Assessment Agency
+ COSIA - Canada's Oil Sands Innovation Alliance
+ CPPIB – Canada Pension Plan Investment Board
+ CREB - Calgary Real Estate Board
+ EBITDA – earnings before interest, taxes, depreciation and amortization
+ E & P – exploration and production
+ FERC – U.S. Federal Energy Regulation Commission
+ Forbearance Agreement – a short term formalized relief arrangement when loan terms are in default
+ GJ – gigajoule
+ GLA – gross leasable area
+ GOA - Government of Alberta
+ GTA – greater Toronto area
+ G&A – general and administrative
+ IEA – International Energy Agency
+ IFMA – International Facility Management Association
+ IPO – Initial Public Offering
+ JV – Joint Venture
+ KV – kilovolt (one thousand volts)
+ KW – kilowatt (one thousand watts)
+ LEED – Leadership in Energy and Environmental Design
+ LNG – Liquefied Natural Gas
+ MCF – thousand cubic feet
+ MCF/D – thousand cubic feet per day
+ mezz – mezzanine debt
+ 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
+ PPA – Power Purchase Agreement
+ 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
+ RICS – Royal Institution of Chartered Surveyors
+ SAGD – steam assisted gravity drainage
+ S & P – Standard & Poors
+ sub – subsidiary
+ sub. – subordinated
+ tic toc – we’ll see …
+ UDI – Urban Development Institute
+ WTI – West Texas Intermediate crude benchmark price
+ Aeropostale Inc. is closing all of its 41 Canadian locations and 113 of 739 U.S. stores as part of a Chapter 11 Bankruptcy reorganization
+ Arlington Street Investments closed on its five-property acquisition (Buon Giorno Restaurant and adjacent lots) on 17th Avenue SW; setting stage for redevelopment program
+ ATB Financial opened its first ‘Entrepreneur Centre’; located at its 17th Ave. SW Branch, it is described as: a first-of-its-kind dedicated space designed specifically for entrepreneurs. Business owners can meet to share ideas, garner support and learn from banking and business experts.
+ Axis NetMedia Corporation got shareholder approval for its going-private transaction
+ Chyrsalis Acquisitions Partners Inc. closed its acquisition of Maximum Yield Publications Inc.
+ current energy prices – live link to Bloomberg energy prices; WTI and Brent about US$43/bbl, so far unaffected by Canadian production drop due to Fort Mac fire … tic toc …
+ Dunphy LLP law firm joined Parlee McLaws LLP
+ ENMAX Corporation terminated its Keephills PPA
+ FACILITYCalgary’s OP-ED page, guest article: ‘Service as it once was!’ by Mark Kolke, Realtor/small business owner, and publisher of FACILITYCalgary - click VIEWPOINT TAB
+ Fort McMurray evacuated; 80-90,000 people evacuated to temporary accommodations for ‘uncertain period of time’ as wildfire dubbed ‘the beast’ burns itself out and before basic services can be restored. Early estimates of 2,400 structures (homes and commercial properties) destroyed but 25,000 were not; insurance industry projects $9+billion in claims, other experts expect a much higher number. Most oil sands operators have curtailed or reduced production – meanwhile Calgary campuses (SAIT, U of C, Ambrose and Mount Royal Universities) have each set up dorm accommodations for thousands of evacuees. GOA will announce a ‘return program’ in two weeks …
+ Fort McMurray fire – GOA updates on the status of the fire, remedial action, evacuations and services are posted online: check out the most recent ones – return to normal for oil sands operations will be a mix of days to weeks, depending largely on personnel issues; residents returning to Fort McMurray are dependent on essential services being restores, risk of toxic debris mitigated and ability of City/Province services to cope, most importantly having the hospital functional – which could talk weeks, or longer. The good news, 85% of the city is intact, undamaged!
+ Fort McMurray area oil sands producers expected to be up and running within a week, maybe two ..
+ Horizon North Logistics Inc. agreed to acquire Karoleena Inc.
+ Marquee Energy Ltd. agreed to sell a non-core shallow natural gas asset for $4.5 million
+ National Public Relations acquired SHIFT Communications
+ Premier Notley meeting with oil industry officials today to lay out re-start logistics
+ Saudi King Salman replaced Oil Minister Ali al-Naimi after 20 years; market watchers are hopeful …
+ Secure Energy Services Inc. agreed to acquire all operating assets of PetroLama Energy Canada Inc. for $25.1 million
+ Telus Corp. agreed to sell its 35% interest in Telus International (outsourcing and call centre business) to Baring Private Equity Asia for $600 million
+ WestJet inaugurated its first transatlantic service; Calgary to London, Gatwick
THIS WEEK IN FINANCINGS
- proposed & closed
+ Alimentation Couche-Tard Inc. closed its €750 million unsecured debt financing
+ Marksmen Energy Inc. closed $583,464 tranche of its equity financing
+ Pattern Energy Group Inc. is on the market to raise US$200 million in equity
+ Sienna Senior Living Inc. closed $138.3 million equity financing
+ Slate Retail REIT closed US$36.6 million equity financing
+ Thomson Reuters is on the market to raise US$500 million in unsecured debt
+ Traverse Energy Ltd. is on the market to raise $3.0 million in equity
+ Valparaiso Energy Inc. closed $363,000 equity financing
+ Yangarra Resources Ltd. is on the market to raise $10.0 million in equity
OIL SANDS AND
HEAVY OIL NEWS
+ fire related shutdowns/curtailment of production at: Athabasca/Hangingstone, ConnocoPhillips, Nexen Long Lake, Statoil, Surmont, Syncrude, Husky, Shell and CNRL – issues of pipeline capacity, diluent availability and mostly due to evacuated personnel; Suncor and Long Lake efforts had a satisfactory result notwithstanding fire on their site edges …
+ 1,200.000 bbls/d [about 1% of global daily output] of crude production shut-in/down …
KUDOS
+ to heroic first responders, RCMP and firefighters who’ve worked so hard to keep Fort McMurray safe, preventing loss of life and property – you have done and continue to do an awesome job
+ to everyone who donated – individually and corporately (banks, retailers and insurance companies in large numbers); according to Red Cross, $60+million donated so far (but no word yet on any of it being dispensed??), and two levels of government have pledged matching funds to help Fort McMurray …
+ Hal Kvisle for his $3 million gift to the University of Calgary’s Canadian Centre for Advanced Leadership in Business – to fund adventure education programs (no word on whether Hal will go heli-skiing with students …)
INTERESTING REAL ESTATE NEWS, other places
+ Cadillac Fairview is renovating its ‘Shops at Don Mills’ property; $21 million project is underway, to be completed Spring 2017
+ Menkes Developments Ltd. Greystone Managed Investments Inc. and Triovest Realty Advisors Inc. acquired their site for $260 million; planning a mixed-use waterfront development in Toronto; retail and residential uses anchored by a public park. Site is 11.5-acres. Will have a 24-storey, 600,000 square foot office tower, 300,000 square feet of commercial retail space, and a new residential community …construction starting Q3 2017 for a Q1 2021 completion
+ Infrastructure Ontario and William Osler Health System awarded a fixed-price contract to Etobicoke Healthcare Partnership to design, build, finance and maintain the new Etobicoke General Hospital Phase 1 Patient Tower Project; valued at $330 million, construction on the new patient care tower will begin immediately with expected completion in late 2018
+ LNG Canada began engineering/planning work for Cedar Valley Lodge, to 4,500 person workforce required during construction of LNG Canada’s proposed liquefaction and export facility in Kitimat, BC; Bird-Civeo JV are contractor for design and construction
+ oh my … it’s beautiful; Santiago Calatrava’s (he designed Calgary’s Peace Bridge) designed the new Transporation Hub under the ‘former world trade center’ in New York; take the tour
this week in REITS
+ Slate Retail REIT closed US$36.6 million equity financing
