Thursday, December 4, 2014

"Canadian Oil Sands Cuts Dividend, Citing Debt Load and Crude Price Drop" $COSWF


Canadian Oil Sands projected cash flow from operations in 2015 of C$730 million, or C$1.51 per share, based on an oil price assumption of $75 per barrel of West Texas Intermediate crude. That is down sharply from the C$1.27 billion, or C$2.62 per share, it expects to earn this year based on WTI of $85 to $103 per barrel.

The company also said it plans to increase crude production about 6% next year to between 35 and 40 million barrels of oil and reduce 2015 capital spending to C$564 million, down from an estimated C$938 million this year.
The one good news is that COS gets close to the WTI price for its oil, and not the much lower WCS price that other heavier oil sands crudes get.

At $9.80/share, the current market cap is $4.75 billion and enterprise value is a little over $6 billion. 

1 comment:

whydibuy said...

I've gotta admit, I did not see the carnage in the oil patch coming. The slaughtering of the small cap oils has been staggering.
As in all bloodbaths, there is opportunity to get cheap shares. The only questions are how long the low oil price lasts and who can ride it out.