Weekly OFS Newsletter
News Items Ending April 16, 2018
Mergers and Acquisitions
- Addison, TX based Daseke, Inc. (NASDAQCM:DSKE) announced the acquisition of Calgary, AB based Aveda Transportation and Energy Services Inc. (TSXV:AVE). Daseke will acquire all issued and outstanding common shares of Aveda for $0.90 cents per share or for 0.0751 Daseke common shares for each Aveda common share, with an additional earnout contingent on achieving certain EBITDA targets. The acquisition provides Daseke with the size and scale needed to grow its operations into rig moving and heavy hauling services.
- Trinidad Drilling Ltd. (TSX:TDG) announced the sale of its three remaining rigs located in Saudi Arabia owned by its international joint venture, Trinidad Drilling International (TDI). The rigs and related equipment will be sold for approximately USD $30 million each for a total of USD $91 million in gross proceeds. Trinidad’s share of the gross proceeds amounts to approximately USD $55 million. The rigs were initially planned to be relocated to the US Permian Basins due to high customer demand for high specification rigs, prior to being approached by interested parties.
- Alberta Premier Rachel Notley and BC Premier John Horgan met with Prime Minister Justin Trudeau to discuss the Trans Mountain pipeline expansion project. The federal government is pushing for the project to go ahead, which includes deploying both financial and legislative measures that will “reassert and reinforce” its approval of the project. The BC government is still going ahead with legal proceedings to test whether BC has the jurisdiction to regulate the project.
- Canada only processes 30% of its own crude oil production, according to the National Energy Board’s Canadian refinery report. There are 14 full refineries and two asphalt refineries in the country, with a total refining capacity of 1.9 million bbls/d, ranking 11th in the world in terms of refining capacity. The majority of the capacity is in Quebec and Atlantic Canada (782,000 bbls/d), followed by Western Canada at 682,000 bbls/d and Ontario at 390.000 bbls/d. In 2017, Canadian refineries operated at 84% of total capacity, mainly due to planned/unplanned maintenance and outages.
- Provincial governments across Canada licensed 2,196 new wells in the first quarter of 2018, 8% lower compared to the 2,384 approved in Q1 2017. Permitting levels during the quarter were flat in Alberta and Manitoba, up in British Columbia and down in Saskatchewan. The top three licensees, including oilsands evaluation wells and experimental permits, were: Canadian Natural Resources (TSX:CNQ) with 227, Crescent Point Energy Corp. (TSX:CPG) with 172 and Syncrude Canada Ltd. with 150.
- Vermilion Energy Inc. (TSX:VET) announced the $1.4 billion acquisition of Saskatchewan based Spartan Energy Corp., an oil and gas focused producer with annual production of approximately 23,000 boe/d. The total considerations for Spartan consists of $1.23 billion in Vermilion’s shares and the assumption of approximately $175 million in debt. The acquisition increases Vermilion’s position in southeast Saskatchewan and is aligned with its sustainable growth-and-income strategy.