Big players in the Canadian energy sector have pumped out a slew of stock sales to pay down debt and fund new production projects. While oil executives pitch these deals as paving the way for growth, investors have yet to be rewarded for their faith.
Canada’s largest oil producers have done 13 public equity sales of $300-million or more in the past 18 months, and on average these stocks have dropped approximately 12 per cent from when they were announced. Investors keep stepping up to buy the new issues in expectation of a rebound in commodity prices after crude oil fell from $100 (U.S.) early in 2015 to about $44.50 today.Report Typo/Error
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