According to recent reports, a shareholder of Canadian oil company Cenovus Energy Inc. (TO:CVE) has asked the Ontario Securities Commission to halt the company's $12.6 billion purchase of certain Canadian assets from independent oil producer ConocoPhillips (NYSE:COP) . The shareholder opposed the transaction on the grounds of the ownership value of Cenovus' shares being diluted by the newly issued stock that is to be utilized to fund the deal.
According to the managing director of Coerente Capital Management Inc., Len Racioppo, Toronto Stock Exchange rules give the stakeholders of a company the right to vote on deals where the company dilutes the ownership by more than 25%. This requirement was not met by Cenovus. Coerente Capital controls 524,000 Cenovus shares for its clients.
Last month, Cenovus decided to acquire most of ConocoPhillips' Canadian oil and gas assets. The company seeks to double its size through this buyout.
About the Company
Cenovus is an integrated oil company headquartered in Calgary, Alberta. The company remains focused on growing its oil projects and establishing natural gas and crude oil production in Alberta and Saskatchewan. Cenovus continues to work on advancing technologies to reduce the amount of water, steam, natural gas and electricity used in operations and to decrease surface land disturbance.
Performance
The company is expected to witness sales growth of 34.20% year over year in 2017, which is higher than the Zacks categorized Oil and Gas - Canadian - Integrated industry’s projected increase. The company had an average positive earnings surprise of 74.89% in the last four quarters.
Zacks Rank and Stocks to Consider
Cenovus presently has a Zacks Rank #1 (Strong Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.
Other top-ranked stocks in oil and energy sector include Global Partners LP (NYSE:GLP) and Antero Resources Corporation (NYSE:AR) . Both these stocks flaunt the same Zacks Rank as Cenovus.
Global Partners is expected to witness sales growth of 8.63% year over year in 2017. The partnership had an average positive earnings surprise of 96.55% in the last four quarters.
Antero Resources is expected to record 8.16% year-over-year growth in 2017 sales. The company had an average positive earnings surprise of 239.10% in the last four quarters.
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Global Partners LP (GLP): Free Stock Analysis Report
Cenovus Energy Inc (CVE): Free Stock Analysis Report
Antero Resources Corporation (AR): Free Stock Analysis Report
ConocoPhillips (COP): Free Stock Analysis Report
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