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by Stockwatch Business Reporter
West Texas Intermediate crude for March delivery added four cents to $53.40 on the New York Merc, while Brent for April added 16 cents to $55.81 (all figures in this para U.S.). Western Canadian Select traded at a discount of $14.65 to WTI ($38.75), unchanged. Natural gas for March lost two cents to $2.83. The TSX energy index lost a fraction to close at 205.53.
Crescent Point Energy Corp. (CPG) soared $1.17 to $16.24 on 13.3 million shares, amid rumours that the company is being targeted by a U.S. activist investor. The rumours appear to have started with Dealreporter (which describes itself as an "independent subscription intelligence service covering corporate events") and then picked up by other outlets, including The Globe and Mail. Dealticker cited an unidentified investment banker who apparently overheard that an unnamed activist firm is building a position in Crescent Point.
Although the rumours remain unconfirmed, they have breathed fresh life into Crescent Point's stock, which is still struggling to recover from an unpopular bought deal last September. In the days after the announcement of the financing, which consisted of 33.7 million shares at $19.30 for proceeds of $650-million, the stock tumbled to around $16.50 from over $20. Despite management's best efforts to defend the financing and promote Crescent Point's "excellent" drill results in Saskatchewan and Utah, the stock remained under pressure, touching a low of just $13.79 earlier this month. It has since perked up a bit as investors await the company's year-end financials on Feb. 23. These will likely include an update on the first quarter drill program, which is expected to boost production to 170,000 barrels of oil equivalent a day. Management will be holding a conference call on Feb. 23 to discuss the financials and operations. The activist rumours may well get a mention.
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