Weekly OFS Newsletter
News Items Ending June 18, 2018
Mergers & Aquisitions
- AltaGas Ltd. (TSX:ALA) announced the $922 million sale of its 35% stake in three hydroelectric projects in northwest BC. The proceeds from the sale will be used to fund AltaGas’ acquisition of WGL Holdings Inc. (NYSE:WGL). AltaGas will remain as the majority shareholder of these projects, which includes the Forrest Kerr, Volcano Creek and McLymont Creek hydroelectric facilities.
- The Alberta government introduced three new incentive programs through the Energy Diversification Act, estimating that $2 billion in funding will attract more than $10 billion in private investment. The programs provide a combination of royalty credits, grants and loan guarantees designed to encourage energy diversification, which includes petrochemical and partial upgrading projects.
- Baytex Energy (TSX:BTE) announced the $1.6 billion merger with Raging River Exploration (TSX:RRX) in an all stock transaction. The merger was pursued to create a diversified, well capitalized oil producer with high quality producing assets. Raging River shareholders will receive 1.436 Baytex shares for each share held.
- Canadian National Railway (TSX:CNR) announced a $3.4 billion capital expenditure program for 2018. Canadian National will invest $340 million in BC, $320 million in Alberta and $130 million in Manitoba in the remainder of 2018. The investments come at the same time Canadian rail operators are seeking to unclog major bottlenecks that left commodities trapped in landlocked western provinces in the last winter.
- A total of 3,638 well licenses have been issued across Canada to the end of May 2018, an increase of 5% compared to 3,452 in the comparable period in 2017. Of the total, operators licensed 3,000 horizontal wells versus 2,877 in 2017.
- The US Federal Reserve raised interest rates for the second time in 2018, and upgraded its forecast to four rate hikes in 2018.