Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Canadian Natural Resources Ltd. (CNQ-T) said on Monday it will buy smaller rival Painted Pony Energy Ltd. (PONY-T) for about $461-million including debt, as Canada’s biggest oil and gas producer seeks to expand its Western Canada acreage.
Natural gas prices have come under pressure from reduced consumption as efforts to tackle the COVID-19 pandemic resulted in a drop in manufacturing activities, while canceled LNG exports have led to high natural gas inventories.
“This transaction also allows us to further insulate against natural gas costs in our oils sands operations and has minimal impact on the company’s low overall corporate decline rate,” said Canadian Natural President Tim McKay in a statement.
Canadian Natural said the deal includes Painted Pony’s properties in Northeast British Columbia areas of Blair, Daiber, Kobes and Townsend, which together produce about 270 million cubic feet per day of natural gas and 4,600 barrels per day of natural gas liquids (NGLs).
According to the terms, Canadian Natural Resources will acquire Painted Pony’s outstanding shares for 69 cents per share in cash, a premium of 17 per cent to Friday’s closing price on the Toronto Stock Exchange.
Canadian Natural will also take on about $350-million of Painted Pony’s debt. The companies expect to close the deal in the second half of the year.
In connection with the TSX listing, New Pacific’s common shares will be voluntarily delisted from the TSX Venture Exchange.
Cascades Inc. (CAS-T) announced a proposed offering of US$200-million in additional 5.375-per-cent senior notes due 2028. It said the notes will be a part of the same series as the US$300-million 5.375-per-cent senior notes due 2028 issued in November 2019.
Profit was $10.2-million or 48 cents per share versus a profit of $8.2-million or 38 cents a year ago.
Analysts were expecting revenue of $286.3-million and earnings of 31 cents.
Its net loss attributable to common shareholders was $17.1-million or 10 cents per share compared to a net loss attributable to common shareholders of $30.2-million or 20 cents per share a year ago.
Adjusted net income of $11.5-million or 14 cents per share was down from adjusted net income of $13.6-million or 16 cents a year ago.
Analysts were expecting revenue of $24.3-million and adjusted earnings of 17 cents per share.
Senvest Capital Inc. (SEC-T) reported net income attributable to common shareholders of $161.2-million or $60.85 per share for the second quarter compared to a net loss attributable to common shareholders of $56.6-million or $21.04 per share for the same period in 2019.
Diversified Royalty Corp. (DIV-T) reported second-quarter revenue of $6.3-million compared to $7.5-million a year ago. Analysts were expecting revenue of $5.8-million in the latest quarter ended June 30.
The company said adjusted revenue was $7.5-million after taking into account its royalty entitlement related arrangements with Nurse Next Door Homecare Professional Services Inc.
Net income was $2.9-million compared to net income of $3.4-million a year ago. "Net income decreased due to lower income from operations and higher interest expense and finance costs, partially offset by the fair value adjustment on financial instruments," the company stated.
It said the increase "was largely due to the company experiencing higher selling prices for its commodity products during the quarter which was offset by a significant decline in sales during April 2020 as a result of COVID-19."
Net earnings increased to $13.1-million or 12 cents per share up from $7.1-million or 6 cents per share over the same period last year “primarily due to increased gross margin.”
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