We are into shoulder season, a traditionally tough time for oil sands. CLL has a $100M due on Jene 30th. Based ojn my analysis, they have acces to more than $400M (cash + receivables +operating line of credit + short term securities)
I have my hand on the buy button as soon as the company prereleases their quarterly earnings or if there is news on the refinance of their upcoming note.
Connacher’s capital expenditure programs have been constrained due to the fact that the Company’s outstanding convertible debentures, with a face value of $100 million, mature on June 30, 2012. It is the Company’s intention to settle the convertible debentures in cash at that time, utilizing its
current cash balances and a portion of its $100 million bank credit facility.
Connacher expects regulatory approval of its proposed Great Divide expansion in the relatively near future, likely by the end of the second quarter
of 2012. Regulatory authorities required a third round of supplemental information requests related to oil sands projects proximal to transportation corridors that affect Connacher and some other companies in the EIA process. These responses were submitted to the regulatory bodies in May.
This is a beaten down stock and is speculative. Refinancing + approval to incease production would be a big boost to the share price.
Oil will hit $100 before it hits $75 and in the big picture, the U.S. is starting to get its mojo on and is hungry to displace middle east energy.
Look for a big pop or drop in early July. Not because of the credit concerns but from the Fed Gov approval to get production to 40,000 BBL's per day. At $85 a BBL, that is revenues of $1.2B+
Good luck to all.