+ Now this is not the end. It is not even the beginning of the end. But it is, perhaps, the end of the beginning. – Winston Churchill
+ It is one of the blessings of old friends that you can afford to be stupid with them. – Ralph Waldo Emerson
KUDOS
+ to Scotiabank Calgary Marathon – the 52nd annual event raised $750,000 distributable among 85 charities; 10,000 participants … waytogo!
+ to Air Canada, who just air-lifted (22 hour trip) another 300 South African firefighters to help with the Fort McMurray wildfire! … no word on whether those guys get some Aeroplan miles, but they should!
GLOSSARY
+ AEMERA – Alberta Environmental Monitoring Evaluation and Reporting Agency
+ AER - Alberta Energy Regulator
+ AUC – Alberta Utilities Commission
+ 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
+ Chapter 11 – court ordered creditor protection under U.S. bankruptcy law
+ 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
+ RNG – renewal natural gas
+ 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
this site is refreshed with a new issue every Tuesday morning
updated May 31, 2016
TODAY'S HEADLINES
NEWS | Allarco in trouble | Fort Mac evacuees poised to return | crude stuck under US$50 | Freehold $165 million portfolio buy | SMART being bought | wildfire still out of control + Richard Pootmans interview | upcoming events, appointments, oil sands/heavy oil + climate change+ infrastructure + REIT NEWS + financings + charity golf tournaments >>>>
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 Richard Pootmans, Councillor, Ward 6, City of Calgary
Last week's conversation with Bonnie DuPont, Chair, Board of Governors @ University of Calgary and Corporate Director
+ Alberta Bill 20; GOA introduced the Climate Leadership Implementation Act – reads to me like a sly way to impose a sales tax without calling it a sales tax, but I’m just a real estate guy. For a really definitive explanation – check out the report published by the folks at Dentons – you don’t need to be a lawyer to read it but you might need to hire one if you want to understand it …
+ BluEarth Renewables Inc. commissioned its 15MW Culliton Creek hydro facility (near Squamish, BC)
+ Allarco Entertainment 2009 Inc. and Allarco Entertainment LP secured CCAA creditor protection; PWC are court appointed monitor
+ ArPetrol Ltd. closed US$11.1 million sale of substantially all of its assets
+ Arsenal Energy Inc. put all its U.S. assets on the market: sale price, US$34 million
+ Chinook Energy Inc. agreed to sell a portfolio of Gold Creek area assets to RMP Energy Inc. for $7.5 million
+ current energy prices – live link to Bloomberg energy prices; crude flirted with staying close to US$50/bbl, under/under … in anticipation that shrinking inventory trends will affect the market far less than whatever OPEC does on June 2nd .. tic toc
+ Freehold Royalties Ltd. closed its $165 million acquisition of royalty production and mineral title lands from Husky Energy Inc.
+ GOA began meetings with Fort McMurray and area small business representatives, assuring them aid and support from the province will support them … tic toc
+ Key Link Assets Corp. acquired Foothills Petroleum Inc.; head office office will stay in Denver
+ Loblaw Companies Limited is on the market to sell its gas bar business; 212 retail fuel sites
+ not everyone can go back to Fort McMurray … Alberta’s Chief Medical Officer of Health says 567 homes and 12 apartment complexes remain unsafe for habitation; these are properties ‘not destroyed by fire’ by impacted by presence of risk posing chemicals and cannot be occupied until sufficient debris is removed, so an estimated 2,000 people won’t be going back as scheduled …tic toc
+ lost production – that’s been in the news a lot; Reuters are saying the cost to industry has been $50 million a day which has been a harsh blow to a struggling industry, struggling province and our struggling cities of Calgary, Edmonton, Red Deer, Grande Prairie and Fort McMurray more than any other. Here’s da ‘ting, that oil is still in the ground, will be produced and – with some good karma – marketed at higher prices soon. The worst is over for producing companies, just as the worst is just beginning for residents of Fort McMurray who are going back to clean up what remains of their lives – we must all wish them well and continue to stand with them!
+ Pengrowth Energy Corporation got approve for its 17,500 bbl/d second commercial phase at its Lindbergh Thermal Project
+ Plains Midstream Canada has barely taken the wrappings off its new $140 million crude-by-rail terminal in Kerrobert, SK and it is closing it due to the market downturn … tic toc, seems like a bargain waiting to be snapped up by someone!
+ Raymond James Ltd. agreed to acquire 3Macs advisors; will create largest independent investment dealer in Canada
+ Red Cross has so far it has collected $112 million in donation for Fort McMurray (to be matched by federal and provincial governments), so that makes $336 million, which sounds great. So far they’ve doled out $50 million in debit cards (though GOA marketed that like it was government money – but it seems that was actually ‘our’ donations being spun out); the Red Cross has set aside just $40 million for supports to returning evacuees, which makes me wonder if/when they’ll disburse the other $22 million and, when/if, the province and the feds will buck up there share, because so far it looks like the relief money is coming out of Canadians’ donations rather than government coffers. Seems the fire is out but the long story of who is paying, when and how will be a protracted exercise
+ Robix Alternative Fuels Inc. agreed to a business combination with Formation Fluid Management Inc.
+ Royal Dutch Shell Plc announced it will cut 2,200 more jobs globally this year (for a total of 5,000) bringing total cuts 2015-16 to 12,500; citing ‘withstand lower-for-longer oil prices’
+ SMART Technologies Inc. agreed to be taken over by Foxconn Technology Group
+ Veresen Inc. agreed to sell its 33MW Glen Park hydro facility near Watertown, NY for US$61 million
+ 49 North Resources Inc. closed its sale transaction with Westcore Energy Ltd; sale of 100% of Allstar Energy Limited
+ wildfires in Alberta: 14 active, 1 (Fort McMurray) out of control; 2,292 firefighters (plus 300 more coming from South Africa), 90 helicopters, 273 pieces of heavy equipment, 20 air tankers currently working on those fired
THIS WEEK IN FINANCINGS
- proposed & closed
+ AltaGas Ltd. is on the market to raise $400 million in equity
+ AltaLink LP is on the market to raise $350 million in unsecured debt
+ Bonavista Energy Corporation is on the market to raise $100 million in equity
+ Brookfield Asset Management Inc. is on the market to raise $500 million in debt
+ Brookfield Asset Management Inc. is on the market to raise US$350 million in debt
+ Brookfield Renewable Partners LP closed $200 million equity financing
+ Cardinal Energy Ltd. is on the market to raise $60.8 million in equity
+ Delphi Energy Corp. is on the market to raise $40 million by a common shares & warrants issue
+ EnergGulf Resources Inc. is on the market to raise $300,000 in equity
+ First Capital Realty Inc. closed $115 million equity financing
+ Freehold Royalties Ltd. closed $190 million equity financing
+ Gaz Metro closed $100 million debt financing
+ Gibson Energy Inc. is on the market to raise $200 million in equity
+ Gibson Energy Inc. is on the market to raise $100 million in convertible unsecured sub. debt
+ Keyera Corp. closed $345 million equity financing
+ MCAN Mortgage Corporation is on the market to float an IPO
+ Perisson Petroleum Corporation closed an $855,000 2nd tranche of its secured convertible debt financing
+ Savaria Corporation is on the market to raise $17.6 million in equity
+ Summit Industrial REIT is on the market to raise $30 million in equity
+ TransAlta Renewables Inc. is on the market to raise $159 million in debt
+ Traverse Energy Ltd. closed $2.8 million equity financing
+ Whitecap Resources Inc. closed $470 million equity financing
OIL SANDS AND
HEAVY OIL NEWS
+ Athabasca Oil Corporation resumed operations at Hangingstone. Suncor Energy airlifted employees to restart operations at its Fort Hills Mine. Sunco Energy began its restart to Firebag and resumed operations at its base plant, and McKay River with resumption at Fort Hills scheduled this week. Syncrude is planning return to operations.
+ Pengrowth Energy Corporation got approve for its 17,500 bbl/d second commercial phase at its Lindbergh Thermal Project
INTERESTING REAL ESTATE NEWS, other places
+ Anbang Insurance Group Co. is investing more in Bentall Centre in Vancouver; now buying 1/3rd interest from GWL Realty Advisors Inc. to add to its 2/3rd interest already acquired from Ivanhoe Cambridge
+ Boston Properties agreed to acquired 49.8% of Colorado Center in Santa Monica, CA for US$511.1 million
+ ICE District Properties (JV with City of Edmonton) topped off its ‘Edmonton Tower’; 27-storey LEED Gold building; City of Edmonton will be major occupant. Building is 70% leased …
+ Starwood Capital Group and Brookfield Property Partners agreed to sell its 9-hotel Interhotel portfolio in Germany to FDM Management’ 4,131 rooms – terms not disclosed
this week in REITS
+ KBS Strategic Opportunity REIT II acquired Lincoln Court in Silicon Valley – 123,529 sq. ft. Class A building, for US$51.5 million
+ RioCan REIT closed the sale of 49 U.S. properties (Northeast & Texas) for US$1.9 billion
+ Summit Industrial REIT agreed to acquire a 309,077 sq. ft. property in Edmonton for $33.0 million
+ Summit Industrial REIT is on the market to raise $30 million in equity
