Canada's New Energy Deal Improves Oil & Gas Investment Risk Profile
COP sits 43% above its 52-week low of $84.28 on light trading volume (0.3× avg).
Summary
Canada's investment climate for oil and gas is improving due to a new energy deal between the federal government and Alberta, which eliminated some environmental rules and set new carbon pricing terms. ConocoPhillips Canada President Nick McKenna stated the agreement significantly improves the risk profile for investments in the region. This positive development for Canadian operations contrasts with the company's recent Q1 earnings decline and lowered production guidance. While the deal could pave the way for future projects, including a potential 1-million-bpd pipeline, the high cost of doing business and lack of firm commitments for new projects remain challenges. Alberta plans to submit a proposal for a new West Coast oil export pipeline before July 1.
At the time of this announcement, COP was trading at $120.24 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $146.5B. The 52-week trading range was $84.28 to $135.87. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Reuters.