RE:RE:RE:Market is telling us somethingEnbridge Line-3 will be in service by the end of 2019 which will add 300k p/d. Rail is at an all time high and will go up substantailly in light of the delays to Trans Mountain and the Keystone XL. The further dealys in bringing on export capacity should serve as a catalyst for OFS companies to further consolidate. Also, as the BOC raises rates, financing becomes more costly for the private co's, another catalyst for deals.
High Arctic Energy Svcs just executed a very small deal this morning for a pvt. snubber out of the states and they plan on using it as a platform to send additional equip south.
stockwatcher7 wrote: The activity levels are never going to pick up because the efficency increases over the past 5 years dictate this is the amount of equipment needed in the Canadian sector. Without the ability to sell more oil outside the US or consume more of our own oil instead of purchasing oil from others.... this sector is over supplied for at least the next 3 years or untill more exports are availible via pipelines.
There would be little increase in debt and there would be a reduction in debt/ share as to what I suggest, but there would be a huge benifit in overhead reduction and reduced competition and increased profit. My only question is why didnt they do it a year ago when I first suggested this.... Would have been a 1 for 1 then.... Now it is a 1 for 2 and the numbers are much better for TDG.