Inside the Market's roundup of some of the Canadian small caps making news and on the move today. This post will be updated throughout the morning
Pacific Rubiales Energy Corp. said it has cut 2014 capital expenditure expectations to $2.3-billion from original guidance of $2.5-billion "to match expected cash flow in a lower oil price environment" and that production and financial results "are expected to be at the lower end of our 2014 guidance, representing approximately 15 per cent year-over-year growth."
"Full year production for 2015 is expected to be between 155 to 160 Mboe/d, generating EBITDA of approximately $1.9- to $2.1-billion, assuming a WTI oil price average of $70.00/bbl. Funds flow is expected to be approximately $1.45- to $1.55-billion, sufficient to fully fund our planned 2015 capital expenditures program. In an environment of lower oil prices, our 2015 capital expenditures program is focused on near-term, high-margin volumes."
The company expects exploration and development capital expenditures of $1.5-billion in 2015, of which more than 80 per cent will be directed to development drilling and facilities, and the remainder will go to largely to low-risk exploration.
Canadian Western Bank said fourth-quarter profits rose 14 per cent year-over-year and that its full-year performance met internal expectations across a variety of key metrics.
Analysts at Desjardins Securities Inc., however, said that these results were not as strong as the headline suggests and lowered their price target from $43 to $40 while maintaining a "hold" rating on the stock.
"What concerns us are the near-term cost pressures in FY15 and FY16, along with potentially weaker economic growth in Alberta on the back of a depressed energy market," said analyst Doug Young , who pointed out that gains related to an asset sale and tiny loan loss provisions artificially boosted this quarter's earnings.
ADF Group Inc. said it lost $1.1-million in the third quarter as revenues fell more than 60 per cent compared to the same period in 2013 and its gross margin came under considerable pressure. Going forward, the company has $46-million worth of projects in its backlog, and these are expected to be completed by the end of July 2015.
"We are very active with regard to bidding activities and encouraged by the award of new contracts in recent months, totalling more than $60-million," said chief executive officer Jean Paschini.
Capital Power Corp. said it acquired Element Power US, LLC for approximately $69-million (U.S.), which includes $52-million in assumed debt. This purchase of 10 wind and four solar development sites significantly expands the company's footprint south of the border.
In addition, Capital Power provided an update on the status of its proposed Genesee 4&5 natural gas-fired generation project in Alberta. The company sees construction beginning in mid-2015 pending a successful environmental review. Management also offered its outlook for fiscal 2015 and indicated that it is targeting funds from operations of $365 to $415-million (Canadian) for the full year.
Prosper Gold Corp. said it is unaware of any material change in the company's operations that would account for the recent increase in market activity. Shares in the company soared Wednesday, closing up 66 per cent.
Montan Capital Corp. and Strait Minerals Inc. have struck a merger agreement to create a Peru-focused mine development company.
The new company "will combine Montan's technical team, with a track record of successful project and mine development in Peru and other jurisdictions, and its financial and capital markets team, with expertise in Peru and a local shareholder support base, with Strait's portfolio of projects," say the companies, in a statement.