Canadian Oil Sands Ltd. has a trifecta of factors hurting its profitability.  Its 36.7% interest in the Syncrude project is a pure play on the oil sands, and because of this its production costs are much higher than conventional producers’. Its operating expenses are up, and the premium it used to command for its light, sweet crude has shrunk.

And the steep slide in crude prices of all varieties will put additional pressure on its stock price and its dividend in the fourth quarter and into 2015.

So we’re adding the stock to the Watch List. Hold.

We’re also adding former CE Portfolio Aggressive Holding Lightstream Resources Ltd. (TSX: LTS, OTC: LSTMF) to the Watch List.

A perfect storm is engulfing the company. Management is selling non-core assets to raise cash to reduce debt. But this process of shoring up the balance sheet is eroding production. It reported a 9% decline in third-quarter production compared with the second quarter. Lightstream is getting squeezed on multiple fronts. Sell.

Because of the volatile nature of commodity pricing, all Oil and Gas companies in the How They Rate coverage universe should be considered permanent members of the “other receiving votes” section of the Dividend Watch List.

Please note that Primary Energy Recycling Inc. has agreed to be acquired by a consortium led by Fortistar LLC for $5.40 per share in cash. That’s a premium of about 29% to Primary Energy’s October 17, 2014, closing price on the Toronto Stock Exchange. The transaction should be completed by the end of 2014.

Primary Energy has “discontinued” its dividend. Hold pending completion of the acquisition.