+ There is joy in work. There is no happiness except in the realization that we have accomplished something. – Henry Ford
+ You can’t cross the sea merely by standing and staring at the water. – Ramindranath Tagore
INFRASTRUCTURE / P3
+ AltaLink announced changes to how they structure rates, first proposed last June, to provide lower rates to consumers and commercial customers to the tune of $520 million through 2018, got approved by AUC – but nothing suggesting any of this is retroactive … and I wonder why not?
+ April 2016 was the 7th month in a row that broke global temperature records; UN sources say it is El Nino effect, magnified by climate change trends
+ Fortis Inc.’s sub. Fortis Hawaii Energy Inc. struck a deal with Hawaiian Electric Company for 20-yr. contract to export LNG from Tilbury facility in Delta, BC; 800,000 metric tons/yr.
+ in Hawaii two companies are vying to develop offshore wind farms off Oahu; imagine 50 turbines (each 600’ tall) WindFloat technology; US$1.8 billion investment to produce 400MW to supply ¼ of Oahu’s needs; that seems like a great tourist attraction …
+ AltaGas secured a sale for at least 50% of its 1.2 million tonnes output from proposed Ridley Island Propane Export Terminal (Prince Rupert) to Astomos Energy Corporation of Japan
+ ArPetrol Ltd. closed sale of substantially all its assets to Empresa Nacional Del Petroleo for US$11,084,232
+ Bayer making some ag-news; they’ve made a US$62 billion cash takeover bid for Monsanto
+ Calgary Film Centre opened - $28.2 million facility has50,000 sq. ft. of sound stage space, 20,000 sq. ft. warehouse, 15,000 sq. ft. of multi-purpose spacey.$10 million from City of Calgary, $5 million from GOA, $1 million from William F. White International Inc. (the anchor tenant). A not for profit entity, Calgary Film Center Ltd.; this facility reminds me of that movie Field of Dreams – ‘if you build it, will they come?’, which begs the question, whether revenue will cover costs and the mortgage without the operator requiring further government support – which was the PC government’s long standing reason for not funding this facility …tic toc
+ current energy prices – live link to Bloomberg energy prices; crude prices off a bit, continued volatility continues as Iran’s output rises, mitigated by Cushing inventory draw-downs, U.S. and Canadian rig counts are down – traders are focused on global supply; Nigerian shipping disruption concerns continue …
+ FMC Technologies and Technip agreed to a US$ 13 billion merger, to close in early 2017
+ Fort McMurray wildfires … mandatory evacuation of work camp employees north of Fort McMurray was expanded; 8,000 people moved after emergency alert at 10PM May 16th – which evacuation order is now subject to a phased re-entry plan; Zone 1: Lower Townsite, Anzac, Fort McMurray 468 First Nation, Gregoire Lake Estates (June 1), Zone 2: Parsons Creek, Stone Creek, Timberlea, Eagle Ridge, Dickinsfield (June 2), Zone 3: Thickwood, Wood Buffalo (June 3), Zone 4(a): Gregoire, Prairie Creek, Saprae Creek Estates (June 3), Zone 4(b): Waterways, Abasand, Beacon Hill, Grayling Terrace, Draper (June 4)
+ Fort McMurray evacuees – now have a return schedule, starting June 1; it will be phased by neighbourhood. Small children, frail elderly, those with chronic medical conditions will not be going back quite as quickly
+ Fort McMurray damage stats: 19,244 structures have been assessed, 1,921 have been destroyed, 17,156 are OK to occupy, 121 are limited to restricted use, 39 are unsafe to occupy/enter, 7 still to be inspected
+ Fort McMurray utilities: gas service has been restored to 90% of undamaged structures in Fort McMurray, electricity restores to 90% of undamaged structures in the wider community; a boil-water advisory remains in effect for all communities and camps which draw water from the Regional Municipality of Wood Buffalo Water Treatment Plant; real-time air quality information
+ Fortis Inc.’s sub. Fortis Hawaii Energy Inc. struck a deal with Hawaiian Electric Company for 20-yr. contract to export LNG from Tilbury facility in Delta, BC; 800,000 metric tons/yr.
+ F12.Net Inc. closed its acquisition of XCEL Professional Services Inc.; terms not disclosed
+ Horizon North Logistics Inc.’s 665-room Blacksand Executive Lodge destroyed by wildfire
+ Lowe’s Companies Inc. closed its $3.2 billion acquisition of RONA Inc.
+ NEB approved Kinder Morgan’s plan to expand the Tran Mountain Pipeline; 157 conditions (49 are environmental) must be satisfied and Federal Review Panel on environmental and first nations issues is required before a final Federal Government approval can occur … expected timeline will conclude November 2016
+ NuVista Energy Ltd. engaged advisors to sell a portfolio of non-core assets
+ Occidental Petroleum is denying it is in talks regarding US$25 billion takeover of Apache Corporation … tic toc
+ Packers Plus Energy Services Inc. opened a completions expertise research and training facility in Louisville, Colorado
+ Perisson Petroleum Corporation and Forent Energy Inc. closed their acquisition of a portfolio of Twining area asses
+ Petrocapita Income Trust closed its $472,486 acquisition of Hytop Well Services Inc.
+ Step Energy Services, recent acquirer of Sanjel Corp. assets, announced they intend to close their Calgary offices
+ Spartan Energy Corp. agreed to acquired Wyatt Oil + Gas Inc. for $77 million
+ TransMountain Pipeline Expansion project’s Ministerial Panel named by Minister of Natural Resources: Ms. Kim Baird, Mr.Tony Penikett and Dr. Annette Trimbee; bios ; terms of reference
THIS WEEK IN FINANCINGS
- proposed & closed
+ Blackbird Energy Inc. closed $28.8 million equity financing
+ Canadian Energy Services & Technology Corp. is on the market to raise $80 million in equity
+ Canadian Spirit Resources Inc. is on the market to raise $500,000 by a common shares & warrants issue
+ Cominar REIT closed $225 million unsecured debt financing
+ Formation Fluid Management Inc. closed $422,002 tranche of its common shares & warrants issue
+ Gensource Potash Corporation closed $256,280 final tranche of its equity financing
+ Keyera Corp. is on the market to raise $300 million in equity
+ Manitok Energy Inc. closed $3,197,416 tranche of its equity financing
+ Perisson Petroleum Corporation closed $1.0 million tranche of its unsecured debt financing
+ Peyto Exploration & Development Corp. closed $172.5 million equity financing
+ Range Energy Resources Inc. closed $1,228,700 final tranche of its common share & warrants issue
OIL SANDS AND
HEAVY OIL NEWS
+ Connacher Oil and Gas Limited (under CCAA court order) is marketing its oilsands assets fro sale; 100% working interest in 87,000 net acres of oilsands leases and two SAGD production facilities in place SW of Fort McMurray
+ mandatory evacuation of work camp employees north of Fort McMurray was expanded; 8,000 people moved after emergency alert at 10PM May 16th; evacuation orders for these camps has been lifted: Millennium Lodge, Borealis Lodge, Hudson Lodge, Noralta Lodge, Ruth Lake Lodge, Suncor Base Plant (including ATT), Syncrude Mildred Lake Plant as fire risk drops. Imperial Oil re-started limited operations at its Kearl facility. Camps south of Anzac: Nexen Long Lake, HML Lodge, Gregoire River, Nexen Kinosis, PTI Kinosis, PTI Anzac, Surmont and Cheecham Lodge will begin a phased re-entry
+ restarting operations post-fire-evacuations – depends how things were shut down; for mines, a full shutdown means a slow re-start, a ‘warm’ shut-down means a faster re-start. For SAGD operations, re-starting can take longer because a build-up of steam (pressure and heat) must be re-established … tic toc
INTERESTING REAL ESTATE NEWS, other places
+ Brookfield Asset Management Inc. agreed to acquire 135 mobile home communities from NorthStar Realty Finance Corp. for US$2.04 billion
+ Digital Realty Trust Inc. agreed to acquire an eight-property package (5 in London, 2 in Amsterdam, 1 in Frankfurt) of carrier-neutral data centers in Europe from Equinix for US$874 million
+ Sports Authority, in bankruptcy protection, changed its plan to close 140 stores – will not close all 460 stores in the change (14,500 employees)
this week in REITS
+ Cominar REIT closed $225 million unsecured debt financing
