Newspaper article The Canadian Press

Flint Energy Shares Jump 66 per Cent after $1.25 Billion Takeover Announced: Flint Shares Jump 66 per Cent on Takeover

Newspaper article The Canadian Press

Flint Energy Shares Jump 66 per Cent after $1.25 Billion Takeover Announced: Flint Shares Jump 66 per Cent on Takeover

Article excerpt

CALGARY - Oilpatch construction firm Flint Energy Services Ltd. says it expects to win more business from oilsands customers it already serves once it becomes part of San Francisco-based construction and engineering giant URS Corp. later this year.

Calgary-based Flint (TSX:FES) will operate as a new oil and gas-focused division, to be headed up by Flint's current CEO Bill Lingard, after the $1.25-billion friendly deal closes during the second quarter.

The move will enable it to provide both engineering and construction services to the likes of Suncor Energy Inc. (TSX:SU) and Husky Energy Inc. (HSE) as they build new oilsands projects -- something neither Flint nor URS could do on its own.

"The clients have all been looking for that integration of engineer and constructor so that they'll get a smooth delivery on projects," Lingard told a conference call Tuesday to discuss the deal.

"Our clients have been asking for that, so we think there's tremendous potential."

The vast majority of Flint's oilsands activity is currently focused on constructing steam-assisted gravity drainage, or SAGD, oilsands projects, in which steam is injected into wells to soften up the bitumen, enabling it to flow to the surface.

The engineering capabilities URS brings to the table should help it win more business from those same customers building upgraders, complex multibillion-dollar facilities in which oilsands bitumen is processed into a lighter type of crude refineries can handle.

One of the reasons Flint was so attractive to URS was its exposure to Canada's growing oilsands industry.

"The oilsands, gas and oil shale industries that Flint serves are expected to be among the fastest growing segments of the North American economy over at least the next decade," said URS CEO Martin Koffel on the call

Flint gets about 80 per cent of its revenues from Western Canada and the rest from the United States. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.