Past year: ▼ 18%(92.0c – 1.26 USD)
Each one in plain English, with the numbers worked through for a shareholder.
2 Jan 2008business combination● Neutral
Continuing the Titan takeover: as of December 31, 2007, about 89.6% of Titan A shares (fully diluted, counting conversion of B shares) had been tendered, up from about 84% on December 19. The offer remains unconditional and was extended again to January 11, 2008 to let more Titan holders tender. The release does not say whether Canetic will then buy out the rest of Titan.
20 Dec 2007business combination▲ GoodMajor
Continuing the October 2007 Titan offer: by December 19, 2007 about 85% of Titan A shares and 73% of Titan B shares had been tendered (about 84% of A shares on a fully diluted basis). Canetic's subsidiary will take them up, the offer is now wholly unconditional, and it was extended to December 31, 2007 for remaining holders. Titan's directors will resign and Charron, Evans, Broshko and Tiede will join Titan's board, so Canetic is gaining control of Titan, which is the Lower Shaunavon-area acquisition announced earlier. The release does not mention the pending Penn West arrangement.
6 Dec 2007business combination● NeutralMajor
Canetic filed the paperwork for a unitholder vote on January 9, 2008 on a plan of arrangement with Penn West Energy Trust (arrangement agreement dated October 30, 2007). Under it, each Canetic unit would be exchanged for 0.515 of a Penn West unit, so this is a merger into Penn West rather than a continuing standalone trust; the vote has not yet happened. Holders can elect a taxable exchange for Canadian tax by January 7, 2008, and are otherwise treated as choosing a tax-deferred exchange. Units must be deposited to receive Penn West units, and certificates not deposited by the sixth anniversary of the effective date lose that right. Record date is November 30, 2007.
18 Oct 2007business combination● NeutralMajor
On October 18, 2007 Canetic agreed to make an offer for Titan Exploration Ltd., paying 0.1917 of a Canetic unit per Titan Class A share and 0.6609 per Class B share, about $116 million including $17.5 million of Titan net debt and roughly 6.5 million new Canetic units. Titan's board supports the offer, and it needs at least 66 2/3% of shares tendered plus regulatory approvals; the deal would add about 1,800 boe/d and acreage in the Lower Shaunavon trend in southwest Saskatchewan next to Canetic's existing land.
24 July 2007business combination● NeutralMajor
This report confirms the Hoadley and B.C. acquisition closed on August 31, 2006 for about $930 million in cash, completing the deal announced in August. It was funded by a $690 million bought deal (20,769,000 subscription receipts at $22.15, which became trust units, plus $230 million of 6.5% convertible debentures due December 31, 2011) and credit facilities, so unitholders were diluted by the new units and debt rose. Canetic's own reserve estimate for the assets (40.1 million boe proved plus probable) is 25% below the independent AJM figure of 53.2 million boe.
9 Aug 2006business combination● NeutralMajor
On August 2, 2006 Canetic agreed to buy the Hoadley (central Alberta) and northeast B.C. gas-weighted assets for $930 million, effective June 1, 2006, and had paid a $50 million deposit. Expected to close by end of August 2006, it would add about 13,500 boe/d of production, and management says it is expected to add to cash flow per unit and support the $0.23 monthly distribution (management's view, not a result). If Canetic defaults it would forfeit the deposit plus $43 million.
16 May 2006business combination▲ GoodMajor
Canetic reported its first quarter of 2006 results, its first as a combined company after the January 5, 2006 merger of Acclaim Energy Trust and StarPoint Energy Trust. Cash flow was $194.7 million (up 141% from $80.8 million a year earlier, Acclaim only), production averaged 72,737 boe/d, the monthly distribution was $0.23 per unit, and the trust began trading on the NYSE on February 15, 2006. Long-term debt stood at $838.1 million.
