This item is part of Stockwatch's value added news feed and is only available to Stockwatch subscribers.

Here is a sample of this item:

by Stockwatch Business Reporter

West Texas Intermediate crude for November delivery lost $1.68 to $89.43, while Brent for December lost $1.93 to $100.32 (all figures in this para U.S.). Western Canadian Select traded at a discount of $25.10 to WTI, up from a discount of $28.00. Natural gas for November added three cents to $3.06. The TSX energy index lost 1.68 points to close at 448.89.

The oil patch started the week with a multibillion-dollar merger. Athabasca Oil Corp. (ATH), up $1.43 to $12.01 on 20.4 million shares, has accepted a $12-a-share takeover offer from Cenovus Energy Inc. (CVE), down $1.39 to $44.86 on 8.93 million shares. The implied value of the cash-and-share bid is $5.7-billion.

Cenovus is offering $12 cash, 0.264 of a share or a combination of both for every Athabasca share, capped at 75 per cent cash (up to $4.3-billion) and 35 per cent equity (up to 44.4 Cenovus million shares -- which, incidentally, is roughly the number of shares it has repurchased through its buyback program in the last four months). The deal would immediately add 45,000 barrels a day to Cenovus's production, potentially rising to 115,000 by 2032. "That represents one of the most significant organic growth opportunities available in the Canadian oil sands today," said president and chief executive officer Jon McKenzie during a conference call this morning. (After two back-to-back megadeals -- today's bid for Athabasca comes less than a year after Cenovus paid $8.6-billion for MEG Energy -- Mr. McKenzie seemed keen to add some "organic" seasoning to Cenovus's outlook.)

The remainder is available to Stockwatch subscribers.
Sign-up for a FREE 30-day Stockwatch subscription and SEE NO ADS