This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Energy Losers: Lone Pine Resources

In February, Encana (ECA - Get Report) sold a 50% interest in its Cutbank Ridge business assets in British Columbia and Alberta to PetroChina (PTR - Get Report) for $5 billion, a deal viewed by the market as valuing a limited number of Canadian assets at attractive price.

In 2010, Royal Dutch Shell (RDS.A - Get Report) had acquired East Resources for $4.7 billion, a mark topped by the Encana joint venture value.

Canada's Athabasca Oil Sands went public last April, at the same time as the Conoco sale, in a $1.4 billion deal that was one of Canada's largest IPOs.

All of the IPO proceeds are being repaid to Forest Oil, which spun off 18% of its ownership of Lone Pine through the IPO. Forest Oil still owns approximately 82% of Lone Pine and has said it will distribute those shares to Forest Oil shareholders in four months.

If the Lone Pine deal didn't reach its pricing goal, it still accomplished another goal of Forest Oil in terms of transparency of operations to the investor community. Analysts following the deal said that the spinoff of Lone Pine made it easier for investors to "get their hands around" Forest Oil.

-- Written by Eric Rosenbaum from New York.

>To contact the writer of this article, click here: Eric Rosenbaum.

>To follow the writer on Twitter, go to Eric Rosenbaum.

>To submit a news tip, send an email to:
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
LPR $0.09 0.00%
FST $0.20 -4.76%
COP $55.27 0.00%
ECA $8.45 0.00%
RDS.A $55.07 0.00%


Chart of I:DJI
DOW 17,131.86 +47.37 0.28%
S&P 500 2,014.89 +15.91 0.80%
NASDAQ 4,838.6430 +8.1730 0.17%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs