Canada Energy Stocks To Slump Fri On Alberta Royalty Hikes
8:55pm ET October 25, 2007
CALGARY (Dow Jones)--Canadian energy company stocks will see an "ugly day" Friday as they react to plans for higher oil and gas royalties in Alberta, Calgary-based brokerage Tristone Capital Inc. said Thursday.
Earlier, Alberta's government announced it will hike royalties by C$1.4 billion above projected 2010 revenues, compared with the C$2 billion increase over 2006 revenues recommended by a review panel.
Companies with significant oil sands assets could see shares slump by 5%-10%, said Don Rawson, vice-president of institutional research. He noted that the government had backed down from the panel's more onerous proposals for the sector, which could have led to a 10%-15% loss in share price.