Global Upstream Oil & Gas M&A Reaches $163 Billion in 2015

Despite a tumultuous year where a challenging oil price instigated a mass cull of investment in the industry, the overall M&A spend in the upstream sector still reached a credible $163 billion during 2015, according to Evaluate Energy’s Annual M&A Review for 2015, which is available for download now.

Source: Evaluate Energy M&A Review of 2015

2015 marked the first full year since Saudi Arabia ramped up production and allowed free market forces to dictate the price of oil. The oil price as per the WTI benchmark subsequently traded between $34.55 and $61.36 during 2015, averaged at $48.79 and ended the year at $36.36.

This $163 billion figure represents only a 4% drop on the total recorded by Evaluate Energy during 2014 and a 10% increase on the 2013 total, which, on the face of it, does not seem too significant of an upheaval following the crash in prices. However, a great deal of this $163 billion is represented by Royal Dutch Shell’s $84 billion takeover for BG Group that was agreed in the second quarter. So, while production actually went against many predictions and did not fall dramatically following 2014’s price collapse, the upstream M&A market did falter, with many unfortunate, highly-leveraged companies being forced to focus on survival rather than M&A or expansion strategies.

For a full, in-depth review of 2015’s M&A activity in the upstream oil and gas sector, download the full M&A review from Evaluate Energy at this link.

Inside the Evaluate Energy M&A Review of 2015:

  • Why 2015 saw a series of high-profile corporate takeover bids rejected
  • The extent to which deal activity actually dropped in 2015 after the price collapse
  • How U.S. shale M&A activity fell to its lowest level since 2009
  • Expectations for 2016 in the upstream oil and gas M&A arena

Download Report

Read More

Canadian Oil & Gas Companies in Colombia

Gran Tierra Energy Inc. (TSX:GTE) recently agreed a US$84 million deal to acquire Petroamerica Oil Corp. (TSX-V:PTA), a deal which will expand Gran Tierra’s position in the Llanos and Putumayo basins of Colombia. Analysis of M&A deal history in CanOils’ latest report “Canadian Upstream M&A Reaches Cdn$2.7 Billion in November 2015” shows that these basins have proven to be popular acquisition targets for Canadian oil and gas companies over the past few years. No fewer than nine TSX and TSX-V listed companies have made an acquisition in these basins since 2012:

  • Canacol Energy Ltd. (TSX:CNE)
  • Gran Tierra Energy Inc. (TSX:GTE)
  • Pacific Exploration & Production Corp. (TSX:PRE)
  • Parex Resources Inc. (TSX:PXT)
  • Petroamerica Oil Corp. (TSX-V:PTA)
  • Petrominerales Ltd. (Formerly TSX:PMG, see note 1)
  • Platino Energy Corp. (Formerly TSX-V:PZE, see note 1)
  • Santa Maria Petroleum Inc. (TSX-V:SMQ.H)
  • Suroco Energy Inc. (Formerly TSX-V:SRN, see note 1)

The most active company in terms of spending has been Pacific Exploration & Production Corporation, spending a total of just over Cdn$2.25 billion between 2012 and 2014. This includes the Cdn$1.58 billion acquisition of Petrominerales Ltd. in 2013. The other eight companies’ deals combined for a total reported value of around Cdn$570 million between 2012 and 2015.

Parex Resources Inc. has been the most active company in terms of number of acquisitions announced, having agreed 10 separate deals in the four year period.

Canada_Colombia_Graph_1

Source: CanOils M&A Database via “Canadian Upstream M&A Reaches Cdn$2.7 Billion in November 2015

Canada_Colombia_Graph_2

Source: CanOils M&A Database via “Canadian Upstream M&A Reaches Cdn$2.7 Billion in November 2015

UPDATE TO ARTICLE: 14th January, 2016 – Gran Tierra Energy signed another deal to consolidate its interest in the Putumayo basin block PUT-7 for US$19 milion. This comes a day after news that the company’s acquisition of Petroamerica Oil Corp. completed.

Canada_Colombia_CTA

Notes:

1) The following companies in the list of nine companies are no longer active, but were listed on the TSX or TSX-V at the time of their respective acquisitions being made:

  • Petrominerales Ltd. was acquired by Pacific Exploration and Production Corp. (then known as Pacfic Rubiales Energy Corp.) in 2013 
  • Platino Energy Corp. was acquired by Denham Capital Management LP in 2015
  • Suroco Energy was acquired by Petroamerica Oil Corp. in 2014

Insights from CanOils’ M&A database, as well as data from CanOils’ Assets, Financings, Financial & Operating and Oilsands databases, help to provide a thorough, independent overview of the month’s most significant deals in the Canadian oil and gas industry in this report. Sign up to the CanOils & Evaluate Energy Mailing List here and be informed as soon as new analysis reports like this are available.

Read More

The Top 100 Canadian Oil & Gas Companies

CanOils is pleased to announce the release of its new report, Canada’s Top 100 Oil & Gas Companies, which has been compiled using Q3 2015 Canadian oil & gas production results from all TSX and TSX-V listed Canadian oil and gas companies in the CanOils database.

Sign up to the CanOils & Evaluate Energy Mailing List here and be informed as soon as new analysis reports like this are available

Completion of Maintenance Work Has Huge Impact on Rankings

The majority of climbing or falling in this quarter’s rankings was due to many companies seeing planned or unplanned maintenance work that blighted their production in Q2 come to an end. This meant they moved towards levels they had previously been producing at, recovering to what could arguably be described as their true place in the rankings. Canadian Oil Sands Ltd. – a company that is currently the subject of a takeover bid from Canada’s 2nd biggest producer, Suncor Energy Inc. – rose by 3 places into 12th position in the rankings after planned Syncrude turnarounds cost the company a significant amount of bitumen production Q2, while fellow oilsands operator MEG Energy also climbed this period (5 places to 13th position) after its own planned (albeit extended due to forest fires) Q2 maintenance came to an end.

Many companies fell in the rankings despite stable production levels between Q2 and Q3, due to other companies recording large increases in production of their own. The highest ranked company to fall into this category was Pengrowth Energy Corp., which suffered a 2 place drop to 18th because of the recoveries by Canadian Oil Sands and MEG, while Niko Resources Inc. (down 3 places to 38th), Crew Energy Inc. (3 places to 39th), Twin Butte Energy Ltd. (2 places to 40th) and PrarieSky Royalty Ltd. (2 places to 41st) were among the other notable companies that fell for similar reasons. The other common reason for companies moving up the rankings this period was acquisitions that completed in the quarter.

Overall Statistics

The biggest climbers in the rankings this period were Sterling Resources Ltd. and PetroShale Inc.; both companies recorded a 12 place rise in the rankings to 67th and 95th positions, respectively. Sterling saw the resumption of previously curtailed production in the UK North Sea increase its production by 24% in Q3 over Q2, while PetroShale acquired new wells in the North Dakota Bakken and recorded a 34% increase in production of its own. Granite Oil Corp. suffered the most significant fall this quarter, a drop of 17 places into 80th position, but did not specify the reason why its production fell 47% compared with the previous quarter other than blaming natural decline and a lack of new wells being drilled.

Top 100 Statistics Table

Source: CanOils, via Canada’s Top 100 Oil & Gas Companies, September 2015

Download the complete report on Canada’s Top 100 Oil & Gas Companies from CanOils here, for free, now.

Top100-7Cover

The CanOils database provides clients with efficient data solutions to oil and gas company analysis, with 10+ years financial and operating data for over 300 Canadian oil and gas companies, M&A deals, Financings, Company Forecasts and Guidance, as well as an industry leading oil sands product. Join our mailing list to receive more content and marketing materials from us when we have more data and analysis to share with you.

Read More

Upstream Oil & Gas M&A in Canada Reaches Cdn$2.7bn in November 2015

Analysis in CanOils’ new report “Canadian Upstream M&A Reaches Cdn$2.7 Billion in November 2015” shows that the total value of upstream deals in Canada was over Cdn$1 billion for the second month in a row, after a slow period between July and September.

CanOils_MA_Report_Nov2015_1

Source: CanOils M&A Database. Note: Excludes international deals involving Canadian companies. Sign up to the CanOils & Evaluate Energy Mailing List here and be informed as soon as new analysis reports like this are available.

The vast majority of this total emanated from the month’s biggest deal, which was a continuation on the trend of Canadian majors divesting royalty properties for values seemingly unperturbed by the slump in oil prices; PrairieSky Royalty Ltd. acquired certain Canadian Natural Resources Ltd. (“CNRL”) royalty assets for Cdn$1.8 billion. Elsewhere, the rumours of Pine Cliff Energy Ltd. acquiring a portion of ConocoPhillips’ listing of 35,000 boe/d of Canadian production proved to be true with an announcement during the month of a Cdn$185 million purchase.

It was also a busy month for Canadian companies operating outside of Canada. Gran Tierra Energy Inc. became the latest Canadian-listed company to strike a deal in the Llanos and Putumayo basins of Colombia as it agreed to acquire Petroamerica Oil Corp. for around Cdn$110 million. There were also significant deals for Canadian-listed companies in the U.S., Europe and Africa this month.

CanOils_MA_Report_Nov2015_Table

Source: CanOils M&A Database. Note: Excludes international deals involving Canadian companies. Sign up to the CanOils & Evaluate Energy Mailing List here and be informed as soon as new analysis reports like this are available.

Download the full report here

Download Report

Insights from CanOils’ M&A database, as well as data from CanOils’ Assets, Financings, Financial & Operating and Oilsands databases, help to provide a thorough, independent overview of the month’s most significant deals in the Canadian oil and gas industry in this report. Sign up to the CanOils & Evaluate Energy Mailing List here and be informed as soon as new analysis reports like this are available.

Read More

Oil & Gas Assets for Sale in Western Canada

New Assets for Sale Product Now Live on CanOils

The power of both the CanOils Assets and CanOils M&A Databases has been greatly enhanced with CanOils’ newest product, Assets for Sale.

This latest expansion, which is available to all CanOils subscribers, provides details on all publicly available listings of assets for sale in Alberta, British Columbia, Manitoba and Saskatchewan. The database is updated intra-daily with new assets as soon as they are put up for sale.

At a time when falling commodity prices are causing many struggling Canadian companies to put plenty of assets up for sale, this new Assets for Sale product is a vital addition to your suite of data analysis tools to keep on top of every development in the Canadian oil and gas industry.

Map of all Assets for Sale in Western Canada as of February 29, 2016 (updated since first publish)

AFS-Feb-2016

Source: CanOils Assets, click here for map legend

Sign up to the CanOils & Evaluate Energy Mailing List here and be informed as soon as new analysis reports like this are available.

Key Benefits of the Assets for Sale Expansion to CanOils Subscribers

1. Full Coverage of Western Canada

Sourced from a multitude of brokers, advisors and company websites, CanOils Assets for Sale holds full details on all listings for producing assets, developed and undeveloped land holdings as well as royalty assets in Alberta, British Columbia, Manitoba and Saskatchewan.

From the CanOils Assets Webmap, the full details for any listed asset, including production, acreage, reserves and NPV, can be found through a direct link back to the CanOils Assets for Sale database.

Example of an Asset for Sale Listing in CanOils

Canoils Assets for Sale

2. Complete Coverage of Canadian M&A Activity in the Upstream Sector

CanOils has provided full and comprehensive coverage of transactions in the Canadian upstream M&A market since 2008. Now, with the addition of Assets for Sale, the M&A Database is expanded to include a forward looking element to accompany the thousands of upstream M&A deals already available to CanOils M&A subscribers. All CanOils M&A subscribers have access to both the Assets for Sale data on the CanOils Assets Webmap and the Assets for Sale listings in CanOils.

As soon as a new listing is made public, CanOils M&A subscribers can quickly use the plethora of data on offer in the CanOils M&A database to get a clearer picture of what the future holds for the assets in question. CanOils M&A will be able to help predict a potential sales price for the assets, looking at per barrel metrics of past deals of similar production, formation or geographic location, and maybe even help to identify a potential buyer, looking at past deal trends for companies that have been active in the M&A market in recent years for similar assets to the assets being sold. For more on the CanOils M&A database, download our brochure.

3. Analyse Well Performance in Areas Close to Assets that are Up for Sale

(Note: Full analysis only available to CanOils Assets subscribers)

Once you have identified an available listing that may be of interest, the power of CanOils Assets allows you to analyse every well surrounding it to see if the asset for sale is located in an area with successfully producing wells or wells with high IP rates.

Assets-for-Sale-Announcement-3

Source: CanOils Assets, click here for map legend

This asset for sale, for example, produces 70% gas, but is located in an area with many oil and gas wells. Using the identify tools on the CanOils Assets Webmap, the historic production for all of wells of a similar production mix in the area can be taken into Excel in a matter of moments for in-depth analysis.

4. Identify the Companies that Own Land Close to Assets that are Up for Sale

(Note: Full analysis only available to CanOils Assets subscribers)

Using CanOils Assets’ new land analysis tools, it is possible to identify the major players surrounding any asset for sale in terms of how much land is owned by each company. This is important for many reasons. For example, it could help identify a likely or potential buyer for the assets or help to analyse the success of the area if the asset is surrounded by operators with a long history of strong operational performances.

Assets-for-Sale-Bonanza

Source: CanOils Assets. Find out more about the Land Analysis now available to CanOils Assets subscribers.

For more on CanOils Assets and the new Assets for Sale product, take a test drive of CanOils.

Sign up to the CanOils & Evaluate Energy Mailing List here and be informed as soon as new analysis reports like this are available.

Book a Demo of CanOils

Read More

Canadian Oil & Gas Companies Struggle in Q3 2015

Canadian oil and gas companies have recorded major losses as a group for the 3 month period ending September 30, 2015, according to new analysis of quarterly data by CanOils. Low commodity prices have continued to have a huge impact on income statements for oil and gas companies since the end of 2014, with margins being squeezed and huge impairments being recorded across the board. This analysis from CanOils shows that Canadian companies are feeling the same effects as their counterparts across the border in the U.S., whose earnings were analysed using Evaluate Energy data recently.

In this report, CanOils has used Q3 2015 data from the income statements of 34 TSX and TSX-V companies (“the group”) that produce mainly in Canada and have production between 5,000 boe/d and 200,000 boe/d. The full list of companies is available here. In total, these companies produced 1.29 million boe/d in Q3 2015.

The losses for these companies were far greater this quarter compared to previous periods. In Q2 2015, the group made a combined net loss of Cdn$596.5 million but, three months on, this had slumped to a staggering Cdn$3.64 billion loss.

TSXEarningsQ32015Graph1

Source: CanOils, see note 1. Sign up to the CanOils & Evaluate Energy Mailing List here and be informed as soon as new analysis reports like this are available.

The big reason for the steep drops in Q4 2013, Q4 2014 and Q3 2015 is that this is when the companies recorded impairments – Canadian-listed companies are required by IFRS to assess their assets for impairments either once per year at year-end or following the discovery of an indicator of impairment. Only a handful of the group of companies recorded any impairment outside of these three quarters.

So far in 2015, impairments for the group have hit Cdn$4.57 billion, which is a higher total than in any of the last four years. 2015’s total represents a 14% increase over 2014’s annual total of Cdn$4.03 billion (which was also likely caused by the collapse in global commodity prices) and almost double the 2013 total of Cdn$2.32 billion. 23 companies out of the 34 companies have recorded impairments in 2015, compared with only 18 in 2014.

TSXEarningsQ32015Graph2

Source: CanOils, see note 2. Sign up to the CanOils & Evaluate Energy Mailing List here and be informed as soon as new analysis reports like this are available.

On an individual company basis, the biggest asset impairments of 2015 to date have been recorded by Penn West Petroleum Ltd. (TSX:PWT), with a total of Cdn$834 million. Penn West’s impairments relate to its properties that are being sold in the Weyburn area of southeast Saskatchewan and the Mitsue area of central Alberta as well as certain non-core properties in the Fort St. John area of northeastern British Columbia and in the Swan Hills and Wainwright areas of Alberta.

The company has been pressing on with major asset sale plans over the past few months, along with another of the companies to have recorded 2015’s biggest impairments, Pengrowth Energy Corporation (TSX:PGF). Pengrowth has recorded Cdn$409 million of asset impairments in 2015 (see note 3) so far and put assets producing 13,000 boe/d up for sale in October, as it tries to reach its 2015 divestiture target of Cdn$600 million by year end to help reduce its debt. The most recently agreed and planned sales of assets by both Penn West and Pengrowth are analysed in detail in CanOils’ new report, “Canadian Upstream M&A Heats Up in October 2015.”

TSXEarningsQ32015Graph4

Source: CanOils, see note 2. Sign up to the CanOils & Evaluate Energy Mailing List here and be informed as soon as new analysis reports like this are available.

All data in this report was created using the CanOils database, which holds over 10 years of oil and gas financial and operating data for TSX and TSX-V listed companies. CanOils also now has a comprehensive wells and land database covering all of Western Canada, CanOils Assets, which has just gone through a major upgrade process, find out more here.

Notes

1) Net income/Loss here refers to post-tax net earnings on the 34 companies’ income statements; the figures have not been adjusted for non-recurring items such as impairments, gains or losses on asset sales or unrealised gains or losses on hedging contracts.

2) Impairments are taken from the income statement of each company and refer to impairments of assets, i.e. property and equipment, only. Impairments related to financial assets, investments or goodwill are not included.

3) Pengrowth also recorded a goodwill impairment of Cdn$73 million in Q3 2015, which is not included in the Cdn$409 million total mentioned here.

4) The 34 companies were chosen as they had all reported preliminary results by the morning of November 12, 2015 (UK time) and were all domestic, non-oilsands Canadian producers with production between 5,000 boe/d and 200,000 boe/d. The full list is available here.

CanOilsAssetsUpgradeCTA

Read More

Canadian Oil & Gas Upstream M&A Activity Heats Up in October 2015

Analysis in CanOils’ new report “Canadian M&A Activity Heats Up in October 2015” shows that Canadian oil and gas upstream sector had Cdn$7.3 billion of M&A deals announced during October 2015. The bulk of this value is made up of Suncor’s Cdn$6.6 billion takeover bid for Canadian Oil Sands Limited, which was featured in September’s M&A review from CanOils. Even if the Suncor bid had not been made, the remaining monthly total of around Cdn$748 million would still be the highest monthly total since June 2015.

canoils_ma_graph_oct-15

Source: CanOils M&A Database. Note: Excludes international deals involving Canadian companies. Sign up to the CanOils & Evaluate Energy Mailing List here and be informed as soon as new analysis reports like this are available.

The vast majority of this Cdn$748 million total was composed of PKN Orlen making an offer to acquire Kicking Horse Energy, and both Penn West and Pengrowth divesting non-core assets to meet their respective disposition targets. There were also a few important sales by Canadian companies overseas, including Encana exiting the D.J. Basin in the U.S. and Mart Resources finding a buyer in the form of a local Nigerian company.

These deals display an increase in Canadian oil and gas upstream M&A activity and form the main focus of this month’s M&A review, which also includes a detailed look at all of the main M&A stories for Canadian companies both in Canada and abroad. The report also provides a rundown of all assets that were put up for sale in October, including a look into the assets being made available by Cequence Energy’s decision to begin evaluating strategic alternatives.

Top 5 Deals in Canada in October 2015

canoils_ma_table_oct-15

Source: CanOils M&A Database. Note: Excludes international deals involving Canadian companies. Sign up to the CanOils & Evaluate Energy Mailing List here and be informed as soon as new analysis reports like this are available.

Download the full report here

canada_ma_oct-15_cover

Download Report

Insights from CanOils’ M&A database, as well as data from CanOils’ Assets, Financings, Financial & Operating and Oilsands databases, help to provide a thorough, independent overview of the month’s biggest deals in the Canadian oil and gas industry in this report. Sign up to the CanOils & Evaluate Energy Mailing List here and be informed as soon as new analysis reports like this are available.

CanOilsAssetsUpgradeCTA

Read More

Canadian Oil & Gas Land Analysis With CanOils Assets

Major Upgrade to CanOils Assets: Land Analysis Now Active

CanOils is delighted to announce the latest upgrade to its wells and land database, CanOils Assets, which enhances the analysis which can be performed on land data alongside the existing well data.

Not only can you quickly identify where and how successfully any company in western Canada is producing, you can now find out just as quickly where those companies’ land holdings are, who has bordering holdings and where there are blocks of land available at upcoming crown land sales.

This upgrade and the plethora of new functionality that comes with it makes the CanOils Assets tool far more comprehensive and flexible to suit any number of specific data requirements, saving our subscribers countless hours of timeRequest a demonstration of this new functionality and see how CanOils Assets can help you.

Book a Demo of Assets CanOils

CanOils Assets provides data on all crown land holdings across Alberta, British Columbia and Saskatchewan, including title header, tracts and rights as well as lease holder information. Our data includes vital information such as expiry dates, bonus bids and formations. Reports focused around all of this data and more can now be created and extracted to Excel from within the CanOils Assets webmap tool.

Uses of CanOils Assets and the New Land Querying Functionality:

  • View wells and land simultaneously to identify the best operators or lease holdings in any area
  • Quickly compare land holdings of Canadian oil and gas companies side by side with automatic colour coding
  • Evaluate well performance in the proximity of land close to your assets
  • Identify leases that are expiring or coming up for renewal in the near future
  • Assess land costs in different areas to help value potential acquisitions or divestitures
  • See available tracks at upcoming provincial land sales
  • All rights information and land data in CanOils Assets, like the existing well data, is organized in an Excel-friendly format and can be extracted in a matter of moments
  • Get cost-effective analysis from the CanOils Assets team of analysts, saving you and your team valuable time

Example Map 1: Encana Corporation: Selected Wells and Land on Alberta/British Columbia Border

COAssets-Land-01

Source: CanOils Assets – Click here for map legend

Example Map 2: Comparison of Selected Company Land Positions in the Alberta Montney

COAssets-Land-02

Source: CanOils Assets

For more information on CanOils Assets, click here.

For more specific examples on how the new land querying functionality and the rest of the data available with a CanOils Assets subscription can help you achieve your analysis goals, please request a demonstration at this link.

CanOilsAssetsFindOutMoreCTA

Read More

U.S. Oil & Gas Company Earnings Take a Huge Hit in Q3 2015

Since commodity prices began to drastically fall in Q4 2014, U.S. oil and gas companies in the upstream sector have seen their respective net incomes drop significantly. Operating margins have been tightly squeezed and assets have suffered major impairments. The low price environment has endured throughout 2015 and, as a result, Q3 2015 earnings for U.S. companies are the lowest since prices began to fall in Q4 2014.

Evaluate Energy has analysed the preliminary Q3 earnings statements of 48 U.S. companies and compared it with their earnings in previous periods. The 48 companies had a combined total net loss of US$25.5 billion, which is a staggering 70% and 58% larger than these companies’ significant combined net losses of US$14.9 billion and US$16.6 billion in Q1 and Q2 2015 respectively (see note 1).

EarningsImpairmentsQ32015-1

Source: Evaluate Energy, see note 1. Sign up to the CanOils & Evaluate Energy Mailing List here and be informed as soon as new analysis reports like this are available.

Impairments Skyrocket in Latest Set of Quarterly Results

Impairments (see note 2) are clearly the main reason for this continued downward trend. Evaluate Energy released a similar piece of analysis earlier this year focused on U.S. company impairments in Q4 2014. In Q3 2015, impairments for U.S. companies have not only continued to be recorded due to low prices, they are in fact significantly larger.

Of the 48 companies in this study, only 10 did not report any kind of impairment in their earnings statements, while the remaining 38 collectively reported impairments totalling US$32.8 billion in Q3 2015. This is a 79% increase over last quarter’s combined impairments of US$18.4 billion for the full group of 48 companies. In total, since prices began to drop in Q4 2014, the 48 companies have recorded a grand total of US$84.6 billion in impairments and Q3 2015’s total makes up 39% of this.

EarningsImpairmentsQ32015-2

Source: Evaluate Energy, see note 2. Sign up to the CanOils & Evaluate Energy Mailing List here and be informed as soon as new analysis reports like this are available.

On an individual company basis, Devon Energy Corporation (NYSE:DVN) reported the largest impairment this quarter at US$5.9 billion. Devon has been recording impairments all year; this quarter’s US$5.9 billion represents around 38% of 2015 impairments. Of the companies that recorded this quarter’s biggest impairments, Occidental Petroleum Corp. (NYSE:OXY), Murphy Oil Corporation (NYSE:MUR), Whiting Petroleum Corporation (NYSE:WLL) and Carrizo Oil & Gas Inc. (NASDAQ:CRZO) suffered over 90% of their respective impairments for the year in Q3 2015. Whiting’s impairments were especially noteworthy as the US$1.7 billion figure of asset impairments in the chart below does not include an additional US$870 million of goodwill impairments associated with its acquisition of Kodiak Oil & Gas, which only recently closed in December 2014.

EarningsImpairmentsQ32015-3

Source: Evaluate Energy, see note 2. Sign up to the CanOils & Evaluate Energy Mailing List here and be informed as soon as new analysis reports like this are available.

All data in this report was pulled together using the Evaluate Energy database, which provides clients with efficient data solutions for oil and gas company analysis. This includes over 25 years of financial and operating data for the world’s biggest and most significant oil and gas companies, M&A deals, a global E&P assets and LNG database, and an emerging product that focuses on the North American shale industry.

Notes

1) Net income/Loss here refers to post-tax net earnings on the 48 companies’ income statements; the figures have not been adjusted for non-recurring items such as impairments, gains or losses on asset sales or unrealised gains or losses on hedging contracts.

2) Impairments are taken from the income statement of each company and refer to impairments of assets, i.e. property and equipment, only. Impairments related to financial assets, investments or goodwill are not included.

3) The 48 companies were chosen as they had all reported preliminary results by the morning of November 5, 2015 (UK time).

Download our Brouchure

Read More

Canadian Upstream Oil & Gas M&A Rebounds in September 2015

Analysis in CanOils’ new report “Upstream M&A Value in Canada Rebounds in September 2015” shows that September was the biggest month for Canadian M&A activity since May, if the three deals announced in 2015 with a value of over Cdn$1 billion are excluded. The Canadian oil and gas sector had Cdn$563 million of upstream M&A deals announced during September 2015. It marks a steep improvement on the approximate Cdn$59 million of deals that were witnessed during August 2015. The low value of August 2015 was also the lowest monthly total in at least the past 8 years, as the double dip in oil price experienced that month, allied with an already deflated gas price, led to a tentative industry. October has started with a bang as Suncor Energy bid Cdn$6.6 billion for Canadian Oil Sands Limited. The new report is the first of CanOils’ new monthly reviews of Canada’s M&A industry, in which all the month’s major deals, deal stories and assets for sale will be looked at in depth using data from all of CanOils’ databases, including CanOils Assets.

CanOilsMAGraph1Sept2015

Source: CanOils M&A Database. *Note: October deal value correct as of Friday October 9, 2015. Deals allocated according to the month they were announced, rather than completed.

Of course, the above chart is dominated by the deals/potential deals of over Cdn$1 billion. In May, Crescent Point Energy Corp. announced the acquisition of Legacy Oil + Gas Inc., in June, Cenovus Energy Inc. announced that the Ontario Teachers’ Pension Plan was acquiring its royalty business and then in early October, Suncor Energy made a $6.6 billion bid for its Syncrude partner Canadian Oil Sands Limited.

If we exclude these three deals, the increase in activity in September is easier to see. In fact, activity aside from major deals picked up to its highest level in terms of overall value since May.

CanOilsMAGraph2Sept2015

Source: CanOils M&A Database. *Note: October deal value correct as of Friday October 9, 2015. Deals allocated according to the month they were announced, rather than completed.

Inside this Month’s Canadian M&A Report:

Suncor Energy Making Waves in the Oilsands Mining Industry

Suncor Energy is a huge part of the upturn in deal value in recent weeks and is undoubtedly the major focus of this month’s report “Upstream M&A Value in Canada Rebounds in September 2015”. Not only did it make an offer for Canadian Oil Sands in what could prove to eventually be Canada’s biggest deal of 2015 should it ever complete, it also increased its ownership in the Fort Hills mine project in a Cdn$310.0 million deal for an extra 10% interest from Total. Both deals, along with Canadian Oil Sands’ immediate response to Suncor’s offer, are analysed in detail in this month’s report.

Also:

  • Penn West Exploration and Cardinal Energy strike deal for waterflood assets in Central Alberta
  • Pengrowth Energy, Bellatrix Exploration and Black Swan Energy all selling assets
  • A round up of all the deal stories impacting Canada’s oil and gas industry in September and the very start of October.

CanOils_MA_Report_Sept_2015_Cover

Download Report

Insights from CanOils’ M&A database, as well as data from CanOils’ Assets, Financings, Financial & Operating and Oilsands databases, help to provide a thorough, independent overview of the month’s biggest deals in the Canadian oil and gas industry in this report. Image cover is sourced from Syncrude’s Flickr account and cropped to fit the required space.

Read More