CALGARY, Oct. 23 /CNW/ - Canadian Oil Sands Trust announced today a third quarter distribution of $0.75 per Trust Unit, raising distributions in the nine months to $2.25 per unit, or 72 per cent of cash flow from operations. The Trust is maintaining its distribution despite softer crude oil prices. The Trust, created on July 5, 2001 from the merger of the Athabasca Oil Sands and Canadian Oil Sands trusts, reported third quarter cash flow from operations of $66.1 million, or $1.16 per unit, compared to $60.4 million, or $1.06 per unit, in the third quarter of 2000. Distributable income for the third quarter of 2001 was $42.6 million, or $0.75 per unit, with capital spending of $47.4 million, compared to $37.3 million, or $0.66 per unit, and $22.8 million, respectively, in the same quarter of 2000.
As previously announced, the Trust completed during the quarter a 20-year U.S. $250 million, 7.9 per cent senior debt issue and secured a new $450 million credit facility. The Trust also extended its crude oil price hedging and has now sold forward approximately 16,000 barrels per day of its anticipated production for 2002 and 2003, as well as approximately 8,000 barrels per day of its anticipated production for 2004. As a result, Canadian Oil Sands has substantially secured its capability to fund its share of Syncrude's $4.1 billion Stage 3 capital spending plans under a variety of crude oil prices. Stage 3 is expected to increase Syncrude's daily capacity to 365,000 barrels by early 2005 as well as improve the quality of its light crude oil production known as Syncrude Sweet Blend.
On August 24, 2001, Chuck Shultz, Chairman of the Trust, announced the appointment of Marcel R. Coutu as President and CEO of the newly merged entity. Mr. Shultz commented, "The Board is delighted to have Marcel join Canadian Oil Sands and equally pleased that he has also been elected Chairman of the Management Committee of Syncrude by its joint owners." Marcel Coutu, who has over 20 years of experience in the energy industry, most recently as CFO of Gulf Canada Resources Limited, said, "I look forward to managing an asset of such high quality and I anticipate a long future of strong growth and stable distributions. The greater financial flexibility of this new trust should provide unitholders with a more competitive vehicle and greater market liquidity. Our cost of capital will improve as we utilize our greater debt capacity and we expect to provide distributions which are among the most stable in our industry."
Syncrude Operations
Syncrude's production in the third quarter totalled 19.4 million barrels at an average cost of $17.17 per barrel, compared to 19.5 million barrels at $15.71 in the same quarter of 2000. The production level was down due to maintenance work and coker feed restrictions. Unit operating costs were adversely affected by increased maintenance costs, which were only partially offset by lower costs for purchased natural gas.
The Stage 3 expansion plan at Syncrude continues to ramp up with capital expenditures totalling $218.3 million during the third quarter compared to $114.1 million and $117.9 million in the prior two quarters of 2001. The Trust's share of third quarter expenditures was $47.4 million, which was funded from the debt proceeds raised in August.
Realized Selling Prices
The Trust's realized crude oil price averaged $38.91 per barrel in the third quarter, a decrease of 10 per cent from $43.02 in the same period of 2000. Crude oil prices continued to weaken, with the West Texas Intermediate crude oil price averaging U.S. $26.60 per barrel during the third quarter, compared to U.S. $27.98 during the second quarter of 2001 and U.S. $31.58 in the third quarter of 2000. Hedging activities resulted in a loss of $1.83 per barrel, down from a loss of $3.35 in the third quarter of 2000.
Outlook
Energy prices declined significantly in the later part of September. The terrorist attacks of September 11 heightened concerns of an economic downturn and weaker crude oil demand. A decline in the Trust's crude oil revenue is expected to be mitigated by lower natural gas costs for Syncrude as well as the protection Canadian Oil Sands will receive from its commodity hedges.
For the full year 2001, Syncrude expects total production to be in the range of 82 million barrels. Higher maintenance costs and declining natural gas prices are forecast to result in average production costs of approximately $18.00 per barrel. The anticipated completion of the L.C. Finer repair by mid-November should see Syncrude upgrading capacity return to output levels of approximately 250,000 barrels per day of Syncrude Sweet Blend. By year end, capital expenditures at Syncrude are expected to total $780 million.
In October, Syncrude proposed to the joint venture owners a capital investment plan of approximately $2 billion and a production forcast of 85 to 90 million barrels of Syncrude Sweet Blend, with operating costs of $16.50 to $17.50 per barrel. For its budgeting purposes, Canadian Oil Sands expects its share of production to average approximately 18.7 million barrels, with operating costs forecast to be approximately $325 million, or about $17.50 per barrel. Canadian Oil Sands' share of capital expenditures for 2002 is anticipated to total $450 million, including $60 million for base plant maintenance and $390 million for the Stage 3 expansion project.
Canadian Oil Sands Trust - Financial Highlights
>>
(Unaudited)
(in millions - except
per Trust Unit amounts) |
For the three months
ended September 30
--------------------------- |
For the nine months
ended September 30
--------------------------- |
|
2001 |
2000 |
2001 |
2000 |
Net income
per Trust Unit |
$ 51,203
$ 0.90 |
$ 45,381
$ 0.80 |
$132,194
$ 2.33 |
$126,566
$ 2.23 |
Funds from operations
per Trust Unit |
$ 66,104
$ 1.16 |
$ 60,386
$ 1.06 |
$178,237
$ 3.14 |
$169,121
$ 2.98 |
Distributable income
per Trust Unit |
$ 42,584
$ 0.75 |
$ 37,300
$ 0.66 |
$127,731
$ 2.25 |
$ 86,612
$ 1.53 |
Daily average sales -
Syncrude Sweet Blend (bbls) |
45,870 |
45,794 |
47,702 |
44,664 |
| Average selling price ($/bbl) |
|
|
|
|
| Before hedging |
$ 40.74 |
$ 46.37 |
$ 42.41 |
$ 43.41 |
| Oil price hedging |
$ (0.26) |
$ (2.56) |
$ (0.60) |
$ (2.19) |
Currency hedging
(on a cash basis) |
$ (1.57) |
$ (0.79) |
$ (1.50) |
$ (0.77) |
|
-------------------------------------------------------------
$ 38.91 $ 43.02 $ 40.31 $ 40.45
-------------------------------------------------------------
------------------------------------------------------------- |
West Texas Intermediate
(U.S. $/bbl) |
$ 26.60 |
$ 31.58 |
$ 27.77 |
$ 29.72 |
|
|
|
|
| Management's Discussion and Analysis
In the third quarter of 2001, Canadian Oil Sands' revenues totalled $165.8 million, representing a nine per cent decline from $181.5 million recorded in the same quarter of 2000. The reduction was largely attributable to the decrease in the realized crude oil price. The sales volume of 45,870 barrels per day was up slightly from 45,794 barrels per day in the corresponding period of 2000 as production remains below expectations while efforts to achieve the design capacity of the upgrading facilities continue. The Trust's revenues include the costs of its crude oil price risk management agreements as discussed in Corporate Activities. Canadian Oil Sands' operating costs of $73.3 million increased nine per cent over the $67.3 million incurred during the third quarter of 2000. Increased maintenance costs were only partially offset by lower costs for purchased natural gas. Compared with the third quarter of 2000, the Crown Royalty declined $31.1 million to $14.6 million in the third quarter of 2001, reflecting the decrease in revenues, increase in capital spending and decrease in the royalty rate applied.
For the nine months ended September 30, 2001, cash flow from operations of $178.2 million, or $3.14 per unit, represented a five per cent increase from $169.1 million, or $2.98 per unit, reported for the same nine months of 2000. Distributable income was $127.7 million, or $2.25 per unit, up 47 per cent from $86.6 million, or $1.53 per unit, and capital spending totalled $97.7 million compared to $97.0 million in the same period of 2000. Realized prices were down only slightly, while operating costs were $19.91 per barrel, an increase of 19 per cent over the first nine months of 2000. The contributors to this increase in operating costs were high input costs of natural gas, especially in the first six months of 2001, and increased maintenance costs. For the year to date, the Crown Royalty payment was down to $63.4 million from $97.8 million in the corresponding period of 2000.
Cash flow in the first nine months of 2001 was used to fund the ongoing operations and unit distributions, as well as to partially fund the capital expenditure program. The cash balance, including cash and cash equivalents, increased to $383.4 million compared with $102.8 million at year-end 2000, primarily as a result of the senior note issuance in August.
The Trust's net debt increased to $238.6 million at September 30, 2001 from $113.1 million at December 31, 2000 as a result of the utilization of debt to fund a portion of the ongoing capital programs. The Trust's financial capacity is supplemented by committed bank facilities of $490 million, from which there were no outstanding drawings at September 30, 2001. In addition to these facilities, the Trust issued senior notes in August in the amount of U.S. $250 million to prepare for the planned expansion at Syncrude.
Corporate Activities
Risk Management: Canadian Oil Sands had the following currency hedges in place as of September 30, 2001:
Canadian Oil Sands Trust
Exchange Hedging Activities
To the end of
31-Dec 31-Dec 31-Dec 31-Dec 31-Dec 30-Jun
2001 2002 2003 2004 2005 2006
-----------------------------------------------------------------------------------------------------------------
U.S.Dollare Value Hedged
($ millions) $ 44.0 $ 84.0 $ 68.0 $ 72.0 $ 80.0 $ 40.0
Average U.S. dollar
rate of $0.716 $0.666 $0.658 $0.658 $0.658 $0.658
In addition to these hedging activities, Canadian Oil Sands has sold an option to increase the amount hedged for the period January 1, 2003 to December 31, 2007 by $5.0 million per quarter at U.S. $0.692. During the third quarter of 2001, currency exchange hedging settlements reduced Canadian Oil Sands' cash flow by $3.6 million. U.S. $44.0 million was settled at an average rate of U.S. $0.655 per Canadian dollar, while the average exchange rate for the quarter was U.S. $0.647. The year-to-date settlements of currency exchange contracts have reduced cash flow by $19.5 million. Accounting for settlement of currency exchange contracts defers the recognition of a $1.2 million gain in the third quarter related to commitments originally contracted for future years. Cumulatively, Canadian Oil Sands has deferred recognition of gains totalling $10.2 million to 2006 and beyond for accounting purposes, but has included these amounts in the distributable income for the respective periods.
As of September 30, 2001, the crude oil price risk management contracts were as follows:
Canadian Oil Sands Trust To the end of
Commodity Hedging Activities 31-Dec 31-Dec 31-Dec 31-Dec
2001 2002 2003 2004
------------------------------------------------------------------------
Barrels per day of crude oil
(fixed price) 1,391 15,000 15,000 8,000
Barrels per day of crude oil
(collars / options) 5,000 1,000 1,000 -
Average Fixed Price (U.S.$) $ 27.85 $ 24.77 $ 23.04 $ 22.03
Floor price (U.S.$) $ 20.00 $ 25.75 $ 24.00 $ -
Price cap (U.S.$) $ 28.52 $ - $ - $ -
Canadian Oil Sands' revenues were reduced by $1.4 million during the third quarter of 2001 and $7.8 million year to date as a result of crude oil price hedging. In the third quarter, 0.9 million barrels were settled at an average rate of U.S. $26.90.
Unit Distributions: A quarterly distribution of $0.75 per unit will be paid on November 15, 2001 to unitholders of record on November 8, 2001. The income tax status of this distribution will be determined subsequent to closing the books in December 2001 and will be reported to unitholders prior to the end of February 2002. The income tax liability of each unitholder will depend on the unitholder's specific circumstances, and accordingly, each unitholder should obtain independent advice regarding their specific income tax consequences.
Unit Trading Activity: The market price of the Trust Units performed well during the quarter, reaching a high of $40.95 and settling to $37.15 at the end of the quarter, up from $35.00 at June 30, 2001. Canadian Oil Sands' Trust Units trade on the Toronto Stock Exchange under the symbol COS.UN.
Canadian Oil Sands Trust - Trading Activity
Third
Quarter Sept. August July
2001 2001 2001 2001
--------------------------------------------------------------------
Unit price
High $40.95 $40.95 $38.50 $36.95
Low $32.70 $34.75 $36.50 $32.70
Close $37.15 $37.15 $37.00 $36.75
Volume traded (000's) 5,176 2,107 1,383 1,686
Average number of units
outstanding (000's) 56,779
Certain information included in this Quarterly Report with respect to future periods is Canadian Oil Sands' best estimate of future events and is based upon assumptions and anticipated results that are subject to uncertainties. Actual results may vary significantly from those anticipated due to many factors including changes in business strategy, crude oil prices, the Canadian/U.S. currency exchange rates, industry conditions, the timing of capital expenditures, the availability and prices of goods and services as well as government regulations and operating risks.
Canadian Oil Sands Trust
Consolidated Statement of Trust Royalty and Distributable Income
For the three months For the nine months
(Unaudited) ended September 30 ended September 30
(in thousands - except -------------------- -------------------
per Trust unit amounts) 2001 2000 2001 2000
Revenues (*) $ 166,780 $ 182,159 $ 529,697 $ 495,828
Operating expenses (73,323) (67,289) (259,074) (204,969)
Crown royalties (14,611) (45,731) (63,436) (97,751)
Administration expenses (2,497) (2,168) (8,014) (7,000)
Interest expense (8,597) (3,825) (16,195) (11,988)
Large Corporations Tax (476) (1,720) (1,331) (2,437)
------------------------ ------------------------
67,276 61,426 181,647 171,683
Capital expenditures (47,385) (22,792) (97,719) (97,000)
Utilization of expansion
financing 50,000 - 70,000 4,000
Repayment of borrowings - - - (1,581)
Site restoration costs - - (468) (652)
Mining reclamation trust (742) (459) (2,160) (1,289)
Interest expense payable
to Trust (628) (758) (2,012) (2,268)
Reserve for future
production costs (25,722) (741) (22,276) 11,025
------------------------ ------------------------
Base for Trust Royalty $ 42,799 $ 36,676 $ 127,012 $ 83,918
------------------------ ------------------------
------------------------ ------------------------
Trust Royalty at 99% $ 42,370 $ 36,310 $ 125,742 $ 83,079
Interest earned on
Trust's short term
investments 178 446 1,221 1,993
Interest earned on
AOSII's promissory note 628 758 2,012 2,268
Administration expenses
of Trust (592) (214) (1,244) (728)
------------------------ ------------------------
Distributable income $ 42,584 $ 37,300 $ 127,731 $ 86,612
------------------------ ------------------------
------------------------ ------------------------
Distributable income
per Trust unit $ 0.75 $ 0.66 $ 2.25 $ 1.53
------------------------ ------------------------
------------------------ ------------------------
(*) includes cash
settlements on foreign
exchange deferred for
accounting purposes $ 1,154 $ 1,108 $ 3,528 $ 3,324
------------------------ ------------------------
Canadian Oil Sands Trust
Consolidated Statement of Cash Flows
For the three months For the nine months
(Unaudited) ended September 30 ended September 30
(in thousands) -------------------- -------------------
2001 2000 2001 2000
------------------------------------------------------------------------
Cash provided by/(used in)
Operating activities
Net income $ 51,203 $ 45,381 $ 132,194 $ 126,566
Items not involving
cash 14,901 15,005 46,043 42,555
------------------------ ------------------------
Funds from operations 66,104 60,386 178,237 169,121
Site restoration costs - - (468) (652)
Net change in deferred
items (6,228) 442 (4,560) 1,991
Change in non-cash working
capital (32,476) 25,343 (3,280) 8,293
------------------------ ------------------------
27,400 86,171 169,929 178,753
------------------------ ------------------------
Financing activities
Issuance of long-term
debt 385,250 - 385,250 (1,581)
Merger costs (1,101) - (39,801) -
Issuance of 29,000
Trust units - - 764 -
Special distribution - - (14,875) -
Unitholder distributions
declared (42,584) (37,300) (127,731) (86,612)
Change in non-cash
working capital (50,175) 8,925 (3,366) 5,150
------------------------ ------------------------
291,390 (28,375) 200,241 (83,043)
------------------------ ------------------------
Investing activities
Reclamation trust (742) (459) (2,160) (1,289)
Capital expenditures (47,385) (22,792) (97,719) (97,000)
Change in non-cash
working capital 11,357 6,707 10,349 4,937
------------------------ ------------------------
(36,770) (16,544) (89,530) (93,352)
------------------------ ------------------------
Increase in cash 282,020 41,252 280,640 2,358
Cash at the beginning
of the period 101,411 73,443 102,791 112,337
------------------------ ------------------------
Cash at the end
of the period $ 383,431 $ 114,695 $ 383,431 $ 114,695
------------------------ ------------------------
------------------------ ------------------------
Supplemental information:
Large Corporations
Tax paid $ 444 $ 552 $ 1,143 $ 1,339
------------------------ ------------------------
------------------------ ------------------------
Interest charges
paid $ 981 $ 835 $ 8,447 $ 8,247
------------------------ ------------------------
------------------------ ------------------------
Canadian Oil Sands Trust
Consolidated Balance Sheet
(Unaudited) September 30 December 31
(in thousands) 2001 2000
-------------------------------------------------------------------------
Assets
Current assets
Cash $ 383,431 $ 102,791
Accounts receivable 67,377 75,050
Inventories 32,678 28,744
Prepaid expenses 4,150 3,526
------------ ------------
487,636 210,111
Reclamation trust 9,383 7,223
Capital assets, net 1,053,178 997,372
Deferred charges 43,794 17,555
------------ ------------
$ 1,593,991 $ 1,232,261
------------ ------------
------------ ------------
Liabilities and Unitholders' Equity
Current liabilities
Accounts payable and accrued
liabilities $ 66,382 $ 62,435
Unit distribution payable 42,584 45,950
Current portion of other liabilities 2,710 2,703
------------ ------------
111,676 111,088
Other liabilities 19,958 20,823
Long-term debt 622,047 215,861
Future site reclamation and
restoration costs 29,492 27,749
Deferred currency hedging gains 10,220 6,693
Preferred shares of subsidiaries 4,400 4,400
------------ ------------
797,793 386,614
Unitholders' equity
56,779,010 Trust units
(56,750,010 in 2000) 796,198 845,647
------------ ------------
$ 1,593,991 $ 1,232,261
------------ ------------
------------ ------------
Canadian Oil Sands Trust
Consolidated Statement of Income and Unitholders' Equity
For the three months For the nine months
(Unaudited) ended September 30 ended September 30
(in thousands, -------------------- -------------------
except per unit amounts) 2001 2000 2001 2000
------------------------------------------------------------------------
Revenue
Syncrude Sweet Blend $ 163,042 $ 180,156 $ 521,460 $ 490,058
Other 2,764 1,342 5,931 4,440
------------------------ ------------------------
165,806 181,498 527,391 494,498
------------------------ ------------------------
Expenses
Operating 73,323 67,289 259,074 204,969
Crown royalties 14,611 45,731 63,436 97,751
Administration 3,089 2,380 9,258 7,727
Interest 8,597 3,909 16,195 12,215
Depletion, depreciation
and amortization 14,423 14,923 45,565 42,338
Large Corporations Tax 476 1,720 1,331 2,437
Dividends on preferred
shares of subsidiaries 84 165 338 495
------------------------ ------------------------
114,603 136,117 395,197 367,932
------------------------ ------------------------
Net income for the period 51,203 45,381 132,194 126,566
Unitholders' equity
beginning of the period 788,680 833,696 845,647 809,146
Issue of Trust units
for cash - - 764 -
Merger costs (1,101) - (39,801) -
Retroactive pension
adjustment - - - (7,323)
Special distribution to
unitholders - - (14,875) -
Cash distributions to
unitholders (42,584) (37,300) (127,731) (86,612)
------------------------ ------------------------
Unitholders' equity end
of the period $ 796,198 $ 841,777 $ 796,198 $ 841,777
------------------------ ------------------------
------------------------ ------------------------
Net income per
Trust unit $ 0.90 $ 0.80 $ 2.33 $ 2.23
------------------------ ------------------------
------------------------ ------------------------
Distributable income
per Trust unit $ 0.75 $ 0.66 $ 2.25 $ 1.53
------------------------ ------------------------
------------------------ ------------------------
>>
Canadian Oil Sands Trust Selected Notes to the Financial Statements Nine months ended September 30, 2001 (unaudited)
The interim consolidated financial statements include the accounts of Canadian Oil Sands Trust and its subsidiaries, and are presented in accordance with Canadian generally accepted accounting principles. The interim consolidated financial statements have been prepared following the same accounting policies and methods of computation as the consolidated financial statements for the previous Canadian Oil Sands Trust for the year ended December 31, 2000, except as described below. The disclosures provided below are incremental to those included with the annual consolidated financial statements.
Note 1. Business Combination
Effective July 5, 2001, Athabasca Oil Sands Trust ("Athabasca") and Canadian Oils Sands Trust merged. Each of the trusts held a royalty over the working interest percentage in the Syncrude Joint Venture owned in its subsidiary company. As part of the transaction, every unitholder in Canadian Oil Sands received units in Athabasca on a one-for-one basis. The resultant entity was then renamed Canadian Oil Sands Trust (the "Trust").
Approximately 52 per cent of the units in the resultant Trust are held by former Athabasca unitholders. Athabasca contributed assets of $611 million and liabilities of $250 million and Canadian Oil Sands contributed assets of $637 million and liabilities of $209 million.
The business combination has been treated as a pooling of interests. As such, the assets and liabilities reflect the combined values recorded by the two individual entities, after adjustments to accounting policies for consistency purposes.
The costs to effect the combination have been recorded as a charge to Unitholder capital in the consolidated results of the combined entity.
Note 2. Unitholders' Equity
A maximum of 500,000,000 Trust Units have been created for issuance pursuant to the Trust Indenture. The Trust Units represent a beneficial interest in the Trust. All Trust Units share equally in all distributions from the Trust and carry equal voting rights. No conversion, retraction or pre-emptive rights attach to the Trust Units. Trust Units are redeemable at the option of the Unitholder at a price that is the lesser of 90 per cent of the average closing price of the Trust Units on the principal trading market for the previous 10 trading days and the closing market price on the date of tender for redemption, subject to restrictions on the amount to be redeemed each quarter.
Since inception of the Trust, the following Trust Units have been issued for cash proceeds:
<<
Issue Number of
Date Price Trust Units Net Proceeds
----- ----- ----------- ------------
November 30, 1995 $ 10.00 27,000,000 $ 254,975,000
April 26, 1996 $ 13.65 12,900,010 $ 176,085,000
June 20, 1996 $ 14.15 10,100,000 $ 142,915,000
February 19, 1998 $ 24.00 4,000,000 $ 91,950,000
April 6, 1999 $ 18.65 2,750,000 $ 48,947,000
June 29, 2001 $ 26.34 29,000 $ 764,000
------------ ----------------
56,779,010 $715,636,000
------------ ----------------
------------ ----------------
>>
The Trust has a Unitholder Rights Plan (the "Rights Plan") designed to provide the Trust and the Unitholders with sufficient time to explore and develop alternatives for maximizing unitholder value if a take-over bid is made for the Trust. One right has been issued and attached to each Trust Unit outstanding and one right attaches to each Trust Unit subsequently issued. Rights issued under the Rights Plan become exercisable when a person, and any related parties, has acquired or commences a take-over bid to acquire 20 per cent or more of the Trust Units without complying with certain provisions set out in the Rights Plan. Should such an acquisition or announcement occur, each right entitles the holder other than the acquiring person, to purchase Trust Units at a 50 per cent discount to the market price.
The Trust Unit Incentive Plan owned by the former Canadian Oil Sands Trust was terminated when the trusts merged. All outstanding granted rights were exercised and resulted in the issuance of 29,000 Trust Units and payments totalling approximately $0.6 million. The cash payments have been included in administrative expenses.
<<
Note 3. Bank Credit Facilities
Credit Available
----------------------
(thousands of dollars)
a) Extendible revolving term facility $ 20,000
b) Extendible revolving term facility 20,000
c) Credit facility 195,000
d) Credit facility 255,000
----------------------
$ 490,000
----------------------
----------------------
>>
a) The $20 million extendible revolving term facility enables funds to be borrowed, repaid and reborrowed with any such borrowings maturing on August 22, 2003. The term of this facility may be extended on an annual basis with the agreement of the bank. Amounts borrowed through this facility bear interest at a floating rate based on bankers' acceptances plus 0.60 of one per cent per annum, while any unused amounts are subject to a 0.15 of one per cent per annum standby fee.
b) The $20 million extendible revolving term facility enables funds to be borrowed, repaid and reborrowed with any such borrowings maturing on July 3, 2003. The term of this facility may be extended on an annual basis with the agreement of the bank. Amounts borrowed through this facility bear interest at a floating rate based on bankers' acceptances plus 0.60 of one per cent per annum, while any unused amounts are subject to a 0.15 of one per cent per annum standby fee.
c) The $195 million facility consists of $65 million that is a 364-day extendible tranche convertible to a two-year term loan, and a $130 million three-year extendible revolving credit tranche. Amounts borrowed through these facilities bear interest at a floating rate based on bankers' acceptances plus 0.60 of one per cent per annum with a premium of 0.05 of one per cent per annum if borrowings exceed 66 per cent of the total credit facility. Any unused amounts are subject to a 0.125 per cent per annum standby fee with respect of the 364-day extendible tranche and a 0.15 per cent per annum standby fee with respect of the three-year extendible revolving credit tranche.
d) The $255 million facility consists of $85 million that is a 364-day extendible tranche convertible to a two-year term loan, and a $170 million three-year extendible revolving credit tranche. Amounts borrowed through these facilities bear interest at a floating rate based on bankers' acceptances plus 0.60 of one per cent per annum with a premium of 0.05 of one per cent per annum if borrowings exceed 66 per cent of the total credit facility. Any unused amounts are subject to a 0.125 per cent per annum standby fee with respect of the 364-day extendible tranche and a 0.15 per cent per annum standby fee with respect of the three-year extendible revolving credit tranche.
Note 4. Long Term Debt
On August 24, 2001, Canadian Oil Sands issued U.S.$ 250 million of 7.9 per cent Senior Notes. The notes are unsecured obligations of Canadian Oil Sands and rank pari passu with all other unsecured and unsubordinated indebtedness. There are certain covenants under the indenture, including limitations on debt, sale of assets and granting liens or other security interests.
<<
Note 5.
Financial Instruments
Unrecognized gains (losses) on risk management activities:
Thousands of dollars September 30, 2001
------------------------------------------------------------------
Crude oil $ 17,723
Foreign currency (32,586)
Interest rates 11,178
--------------------
$ (3,685)
--------------------
--------------------
>>
-30-
For further information: please call Canadian Oil Sands' investor relations line (403) 290-3329, email
COST_InvestorRelations@pancanadianenergy.com, or visit the Trust's website, www.canadianoilsandstrust.com;
To request a free copy of this organization's annual report, please go to http://www.newswire.ca and click on reports@cnw.
|