Petro-Canada Tapping Debt Markets (PCZ)

It seems that amidst a global tightening of credit standards and many lending spreads have widened out (while rates are easing) doesn’t affect all companies out there.  That’s particularly true if you are an oil company.  These oil giants were in great shape at $70 oil, but $100 oil has even more benefits.  Petro-Canada (NYSE: PCZ) has filed with the US SEC to sell up to $4 Billion in debt securities. 

The filing from the integrated oil and gas player was not specific as to maturities or tranches but it will now be able to sell up to $4 Billion over the next 25-month period.  These debt securities can be sold in the U.S. or in Canada.

We routinely cover implications for debt and equity offerings, back door plays into IPO’s, special financings and more on our open email distribution list that usually goes out twice weekly.

Petro-Canada currently has a market cap of roughly $20 Billion, and its $41.95 current stock price is at the bottom of its US-traded stock range of $37.40 to $61.18 over the last year.  As of the end of 2007, its annual report shows that its total assets are some $23.8 Billion and it listed $3.6 Billion in current liabilities and $3.33 Billion in long-term debt before other liabilities.

Jon C. Ogg
March 24, 2008

Jon Ogg produces the Special Situation Investing Newsletter and can be reached at [email protected]; he does not own securities in the companies he covers.