Cenovus pays 17B for Conoco Assets.

[blgoodbrand1]

Wow. Changes to come in my part of the world.
https://www.google.ca/amp/business.f...-7-billion/amp


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[Slicktricker]

Yep I work for them going to be a good time

[67ZL1]

I wonder if Cenovus is going to keep the gas assets or hand them over to Encanna? Wouldn't that be something if they packaged off the Deep Basin assets off to CNRL! I can just imagine the looks on everyone's faces at Elmworth and Wembly plants, lol!

[Slicktricker]

Well cnrl actually 51% owners of both

[DiabeticKripple]

Big changes for us too. We do Conoco's fracs so I hope cenovus gives us a call too

[79ford]

The sands are getting more canadian which is kind of a good thing. The canadian naturals and suncors imperial oils cenovuses etc seem to lump it up during the bad years vs running for the hills after a few years of cheap oil

Not that imperial is canadian but these long time players in the tarsands seem to know how to get it done. Oil has been alot cheaper than it is now.

[67ZL1]

Originally Posted by Slicktricker

Well cnrl actually 51% owners of both

I heard CNRL was majority owner in the Wembly plant but Conoco won't give up operatorship. Last I heard was that it's tied up in court. I was not aware that they had majority in Elmworth.

[Big Grey Wolf]

My only concern is world majors, Shell Conoco etc are pulling out of Canada, not sure if they are giving up on high cost Oilsands or just Alberta. I would not think they would give up on the 3rd largest proven heavy oil reserves in the world.

[nick0danger]

Originally Posted by Big Grey Wolf

My only concern is world majors, Shell Conoco etc are pulling out of Canada, not sure if they are giving up on high cost Oilsands or just Alberta. I would not think they would give up on the 3rd largest proven heavy oil reserves in the world.

Shell has been moving jobs out of Alberta for some time. All the jobs they can are moving to Houston, its not exclusive to Alberta either the closed there Denver office not to long ago as well.

I also understand that shells Calgary research center is empty right now as well.

[big zeke]

Originally Posted by Big Grey Wolf

My only concern is world majors, Shell Conoco etc are pulling out of Canada, not sure if they are giving up on high cost Oilsands or just Alberta. I would not think they would give up on the 3rd largest proven heavy oil reserves in the world.

The key obstacle is that many of these majors have viable production elsewhere in the world that gives better returns. Many of these supermajors have costs structures (overhead) that makes oilsands a thin margin or cash negative business, some locals have the same issue. The production profile (and cashflow) from a SAGD well is pretty much the inverse of a shale well; these are low risk reserves but they come out slowly over a long time period and that hurts economics.

On a related note, someone must have not loved the deal, CVE is down like 11% this morning, everyone else is flat or down 1-2%. Loading up with more thermal might be regretful as this dilbit has many challenges including huge discounts (what is TAN anyways?), high OPEX and complex geology (at least the new stuff they are bringing on in Christina and Foster). Trying to rebrand as EnCana 2.0 since they picked up some Deep Basin lands is kinda like a pipefitter calling himself a welder because they pay better...completely different skillset is required.

You should check out the listing on Glassdoor for CVE, this tells the other half of the story

[Slicktricker]

Conoco is not getting out of Canada the oil sands and blueberry field in bc are still Conoco they aren't for sale

[raab]

I have no doubt that this is all the NDP. Why are all the foreign countries getting out while Canadian companies stay? NDP probably has threatened a tax on foreign companies or something stupid, to protect national interests. Make no mistake about it the NDP are all about Nationalization.

Funny part is that not even Canadians want to invest in Alberta. Cenovus is dropping like a rock today, while Conoco is up in the States.

[Map Maker]

Cash is king in the stock market.

Government has nothing to do with this. The above posts are right on the money.

Encana 2.0 , that is good.

To me, the buyout is signalling that oil markets are strengthing and will go up from here.

[ESOXangler]

Originally Posted by raab

I have no doubt that this is all the NDP. Why are all the foreign countries getting out while Canadian companies stay? NDP probably has threatened a tax on foreign companies or something stupid, to protect national interests. Make no mistake about it the NDP are all about Nationalization.

Funny part is that not even Canadians want to invest in Alberta. Cenovus is dropping like a rock today, while Conoco is up in the States.

Well that's just a crazy, proofless theory your be got yourself. Companies like Shell and Conoco like higher profit margins. THat usually entails countries that lack environmental policies or stable democracies. First world countries are expensive so of course they want out. These Canadian companies are still going to turn a profit. Just not at margins ignorant companies like Shell demand.

And quit blaming the NDP for shale oil and low prices. It's those comments that really take away from a persons intelligence.

[raab]

Originally Posted by ESOXangler

Well that's just a crazy, proofless theory your be got yourself. Companies like Shell and Conoco like higher profit margins. THat usually entails countries that lack environmental policies or stable democracies. First world countries are expensive so of course they want out. These Canadian companies are still going to turn a profit. Just not at margins ignorant companies like Shell demand.

And quit blaming the NDP for shale oil and low prices. It's those comments that really take away from a persons intelligence.

If that was true then they wouldn't have taken shares as part of the compensation or sold the assets undervalue. When you look at whats going on there's definitely something happening behind the scenes. If IOL pulls out that will be a major indicator that something is rotten in the state of Nutley Land.

[dmcbride]

Originally Posted by ESOXangler

Well that's just a crazy, proofless theory your be got yourself. Companies like Shell and Conoco like higher profit margins. THat usually entails countries that lack environmental policies or stable democracies. First world countries are expensive so of course they want out. These Canadian companies are still going to turn a profit. Just not at margins ignorant companies like Shell demand.

And quit blaming the NDP for shale oil and low prices. It's those comments that really take away from a persons intelligence.

It is the NDP's policies which have had a negative effect on those profit margins, price of oil is the same everywhere.
It is also funny that the ignorant Shell promoted the Carbon tax and then bailed.

[ryeguy21]

i love the morons who cheer when these companies get sold. This means less jobs, less investment, less competition.

Its a clear indicator of ones intelligence if you think less companies working in the oil sands is a good thing. Low oil isnt the reason companies are taking billions in losses on their assets.

[fishtank]

market re act because cenovus is spending money while conoco is getting money better then what they were planning (a November artificial said conoco plan about 3 to 4 billion of asset sale and use the $ for stock buy back ) . as for cenovus they are taking a big bite that might be have hard time or no room for chewing. they finance this with share issue and loans and shouldering more debt . the cnrl deal was easier to swallow because they are better position in financial and assets and returns.

[ForwardBias]

Hopefully this doesn't hurt the boys in the field. Would be nice to see more capital spending in those old Conoco fields.