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  • Penn West in Danger of Default

    Issues a going concern warning:

    http://www.cbc.ca/news/business/penn...debt-1.3583876

    "As there is the potential that the company will not be in compliance with its financial covenants at the end of the second quarter of 2016, there is a risk of default under the company’s bank facility and noteholder agreements,” Penn West said. "Our ability to continue as a going concern depends on the ability to enter into amending agreements with our lenders."

    Requests to Penn West seeking comment weren’t immediately returned. The company previously said it was working with its lenders on options to avoid default. It had C$1.86 billion ($1.44 billion) in long-term debt at the end of the first quarter.

    Penn West will continue asset sales and look for other sources of capital from investors, the company said. It entered into an agreement to sell its interests in the Slave Point area for C$148 million during the first quarter, as well as other non-core dispositions and asset sales. Its hedging program also helps reduce volatility in its funds from operations and align its capital programs, it said.

    Penn West wasn’t in default on any financial covenants at March 31, the company said. It had 4.4 times senior debt to EBITDA and total debt to EBITDA, compared with its limit of less than or equal to 5 to 1, at the end of the first quarter. Its senior debt to capitalization was 40 percent, under the limit of less than 50 percent, and its total debt to capitalization was 40 percent, under the limit of 55 percent.

    Penn West tumbled 22 percent to 82 cents at 12:50 p.m. in Toronto, giving it a market value of C$411 million. The oil producer had a value of as much as C$13 billion in 2008.

    Comment


    • Originally posted by SP59 View Post
      How is Calgary going from 8.8% to 8.6% not the positive story vs. The Rockies unemployment increasing?
      It was the positive story of last month

      The Rockies did great last month. But this month not so much.

      Comment


      • Ouch

        'Penn West tumbled 22 percent to 82 cents at 12:50 p.m. in Toronto, giving it a market value of C$411 million. The oil producer had a value of as much as C$13 billion in 2008.'


        Ottawa-Edmonton-Vancouver-Edmonton

        Comment


        • The Edmonton story certainly is not the Alberta story it seems.


          Ottawa-Edmonton-Vancouver-Edmonton

          Comment


          • Originally posted by AAAAE View Post
            Originally posted by SP59 View Post
            How is Calgary going from 8.8% to 8.6% not the positive story vs. The Rockies unemployment increasing?
            It was the positive story of last month

            The Rockies did great last month. But this month not so much.
            Sorry, missed the 'last' in that statement.

            Comment


            • Originally posted by IanO View Post
              The Edmonton story certainly is not the Alberta story it seems.
              Edmonton has been very lucky, but I think that luck is running out rapidly. At least on the construction side of things, the market has really turned in the past 3-6 months and it's fair to say that there's a lot of desperation bidding going on right now. I think that the worst is yet to come for Edmonton.

              On the other hand, Edmonton has recently received an influx of something like 15-30,000 new residents, and that will certainly goose the numbers for many businesses. But it remains to be seen what kind of a long term impact that will have.

              Comment


              • Originally posted by Marcel Petrin View Post
                Originally posted by IanO View Post
                The Edmonton story certainly is not the Alberta story it seems.
                Edmonton has been very lucky, but I think that luck is running out rapidly. At least on the construction side of things, the market has really turned in the past 3-6 months and it's fair to say that there's a lot of desperation bidding going on right now. I think that the worst is yet to come for Edmonton.

                On the other hand, Edmonton has recently received an influx of something like 15-30,000 new residents, and that will certainly goose the numbers for many businesses. But it remains to be seen what kind of a long term impact that will have.
                There are only two Construction Mega projects in all of Alberta that will run into 2017 with no new ones foreseen.
                Our Construction market was built up to sustain an incredible amount of projects. It is going to be very interesting to see what happens but I suspect there is going to be some significant pain and I doubt this more competitive bidding will allow enough projects to right their capital numbers to push them ahead and offset the stagnant demand in the coming years.
                I hope to be wrong and see steady paced economic growth more typical of other major centers, but that is still a huge gear shift downward from machine that exists today.

                Comment


                • ^would be nice to get a pipeline under construction in late 2017...

                  http://www.macleans.ca/politics/otta...ipeline-plans/
                  Last edited by moahunter; 17-05-2016, 03:47 PM.

                  Comment


                  • Penn West tumbled 22 percent to 82 cents at 12:50 p.m. in Toronto, giving it a market value of C$411 million. The oil producer had a value of as much as C$13 billion in 2008.
                    Omigosh. I made a nice return on Penn West a few years back, never could have imagined it would ever come to this.
                    Did my dog just fall into a pothole???

                    Comment


                    • Originally posted by Marcel Petrin View Post
                      Originally posted by IanO View Post
                      The Edmonton story certainly is not the Alberta story it seems.
                      Edmonton has been very lucky
                      As a recent engineering graduate from the University of Alberta. I can confidently say that 70-80% of new graduates are currently unemployed.

                      Comment


                      • It was the same in the mid eighties.

                        All Top_Dawg has to say is: Go east young man, go east.

                        Comment


                        • Originally posted by Top_Dawg View Post
                          It was the same in the mid eighties.

                          All Top_Dawg has to say is: Go east young man, go east.
                          Nah, its full of creeps and bums

                          Comment


                          • Originally posted by Top_Dawg View Post
                            It was the same in the mid eighties.

                            All Top_Dawg has to say is: Go east young man, go east.
                            Vancouver isn't doing too bad. I'd prefer that tbh.

                            Comment


                            • Originally posted by bhaskar21 View Post
                              Originally posted by Marcel Petrin View Post
                              Originally posted by IanO View Post
                              The Edmonton story certainly is not the Alberta story it seems.
                              Edmonton has been very lucky
                              As a recent engineering graduate from the University of Alberta. I can confidently say that 70-80% of new graduates are currently unemployed.
                              There are also unemployed experienced engineering professionals looking, as well as recent immigrants looking to get a foot in the door.

                              Professional Engineering does require a P.Eng. license, but does not have a powerful enough lobby that can limit candidates, as say fields like Dentistry, Pharmacy, Optometry, and Medicine do. This is a big reason why there are so many Engineers always looking, and literally every medical professional is working and making big $$$ in both good and bad times.
                              Last edited by Bill; 18-05-2016, 03:04 PM.
                              The world is full of kings and queens, who blind your eyes then steal your dreams.
                              It's heaven and hell!

                              Comment


                              • Originally posted by DanC View Post
                                There are only two Construction Mega projects in all of Alberta that will run into 2017 with no new ones foreseen.
                                What is a mega project? Wikipedia defines it at about the $1 billion mark. By this definition Anthony Henday Northeast is one $1.8 billion, but that will be complete in October 2016, then we have the Mill Woods LRT that is just starting up and should be complete in 2020 it's cost is estimated at $1.8 billion also.

                                The arena district is made up of multiple projects which total around $2.5 billion. If you count it as one project it certainly qualifies.

                                All of these projects do help reduce Edmonton's unemployment at least for the next few years.

                                Comment

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