COS Syncrude Asset - Mired in Production ProblemsStory is in the Globe & Mail, somebody finally writing it as it is and just maybe COS management is feeling the heat but the excuses keep coming.
https://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/syncrude-canada-mired-in-production-problems/article22106727/
The bottom line is COS deserves it's current stock price & status, taking one of the biggest hits in the oil patch and one of the highest short positions against it. Traditionally rises and falls with the oil price because that's all they have to offer, a 100% crude oil investment. But management's refusal to hedge any of their share of production has definitely made it worse. Followed by their unwavering support of the operational management provided by ExxonMobil despite the fact that it clearly hasn't worked, COS is penalized further for the serial unreliability. Keep this strategy up and they will soon be a company struggling to survive in 2015 if the oil price remains below $75 as many expect.
Implications being made in the story and comments of the front line experience that has been lost because of the ongoing poor management isn't a good sign for the future either.