{"id":525906,"date":"2010-04-13T10:53:00","date_gmt":"2010-04-13T14:53:00","guid":{"rendered":"e2249889-c78b-43e3-9643-b1d7d4aa587b:422408"},"modified":"2010-04-13T10:53:00","modified_gmt":"2010-04-13T14:53:00","slug":"canadian-oil-sands-trust-beneficiary-of-latest-oil-patch-deal","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/525906","title":{"rendered":"Canadian Oil Sands Trust beneficiary of latest oil patch deal"},"content":{"rendered":"<p>Monday&#39;s announcement that China Petroleum &amp; Chemical Corp (Sinopec) has agreed to buy ConocoPhillip\u2019s 9% stake in Syncrude Canada Ltd. for $4.65 billion has positive implications for <a href=\"http:\/\/www.financialpost.com\/markets\/company\/index.html?symbol=COS.UN&amp;id=3424105\" >Canadian Oil Sands Trust<\/a>, says Matt Donuhue, an analyst at UBS AG.&nbsp; <\/p>\n<p>Mr. Donuhue said the better-than-expected price offered for Conoco&#39;s stake implies value of $517-million per 1% interest in Syncrude. That translates to a $37.36 per share price for Canadian Oil Sands, based on its 36.74% interest in the Syncrude oil<br \/>\nsands joint venture.<\/p>\n<p>&quot;Assuming Sinopec paid a 10% premium for the asset and negating from that an historic UBS 5% premium for Canadian Oil Sands in relation to the Syncrude valuation (larger interest, pure play), we generate a target price for Canadian Oil Sands of $35.50\/share,&quot; the analyst said in a note to clients, maintaining his Buy recommendation. <\/p>\n<p>Greg Pardy, an RBC Capital Markets analyst, suggested the deal implied a value of $37.50 for COS units. He maintained his Sector Perform rating and left his $34.50 per unit unchanged. <\/p>\n<p>The RBC analyst said the transaction was important because it removed uncertainty associated with a potential equity offering that had weighed upon Canadian Oil Sands Trust units since Conoco&#39;s intentions surfaced last autumn.<\/p>\n<p>&quot;Accordingly, we look upon the 5% appreciation in COS units [Monday] as reflective of that overhang removal along with its 100% production weighting toward crude oil,&quot; Mr. Pardy said. <\/p>\n<p><a href=\"mailto:dpett@nationalpost.com%20\">David Pett <\/a><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/network.nationalpost.com\/NP\/aggbug.aspx?PostID=422408\" width=\"1\" height=\"1\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Monday&#39;s announcement that China Petroleum &amp; Chemical Corp (Sinopec) has agreed to buy ConocoPhillip\u2019s 9% stake in Syncrude Canada Ltd. for $4.65 billion has positive implications for Canadian Oil Sands Trust, says Matt Donuhue, an analyst at UBS AG.&nbsp; Mr. Donuhue said the better-than-expected price offered for Conoco&#39;s stake implies value of $517-million per 1% [&hellip;]<\/p>\n","protected":false},"author":4060,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15,7],"tags":[],"class_list":["post-525906","post","type-post","status-publish","format-standard","hentry","category-energy","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/525906","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/4060"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=525906"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/525906\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=525906"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=525906"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=525906"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}