Cenovus Closes Debt Offering - Analyst Blog
Canadian oil company,
Cenovus Energy Inc.
) announced the completion of its debt refinancing activity
announced on Jun 6. Under the refinancing activity, the company
offered senior notes of $800 million in two equal series,
carrying coupon rates of 3.8% and 5.2% with maturity in 2023 and
The proceeds from this offering, along with its existing cash and borrowings will be utilized to redeem an equivalent amount of senior notes bearing an interest rate of 4.5%, due in 2014.
Headquartered in Calgary, Alberta, Cenovus is an integrated oil company with ownership interest in two high-quality refineries in Illinois and Texas. Cenovus' operations include increasing oil projects and growing natural gas and crude oil production in Alberta and Saskatchewan. The company has four top-quality enhanced oil projects, namely, Foster Creek, Christina Lake, Pelican Lake and Weyburn.
Cenovus enjoys the benefits of industry-leading oil sands assets that position it for long-term growth. We believe the company will remain focused on improving its operational efficiency throughout 2013.
However, Cenovus reported weaker-than-expected second quarter 2013 results due to lower crude oil price realizations. Earnings per share came in at 20 cents, missing the Zacks Consensus Estimate of 48 cents.
Cenovus currently carries a Zacks Rank #5 (Strong Sell), implying that it will underperform the broader U.S. equity market over the next one to three months.
Meanwhile, in the energy sector, firms that are expected to significantly outperform the broader U.S. equity market over the same time frame are Matador Resources Company ( MTDR ), Seacor Holdings Inc. ( CKH ), and Magellan Midstream Partners LP ( MMP ). All three firms sport a Zacks Rank #1 (Strong Buy).
SEACOR HLDGS (CKH): Get Free Report
CENOVUS ENERGY (CVE): Free Stock Analysis Report
MAGELLAN MDSTRM (MMP): Free Stock Analysis Report
MATADOR RESOURC (MTDR): Free Stock Analysis Report
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