The rush by dividend-paying Canadian exploration and production companies to cut capital expenditures and in many cases reduce or suspend payouts will continue as weak commodity prices persist, experts say.
With high natural gas storage levels and production at current levels, Henry Hub prices are expected to average US$2.39 per mmBtu this summer, down 43 per cent from $4.16 per mmBtu in the summer of 2014, says a United States analytics and forecasting firm.
Despite the collapse in oil prices, Canadian Natural Resources Limited almost tripled its profit in the fourth quarter (see tables) and is raising its dividend at a time when many in the oilpatch are cutting.
Service companies are now faced with not only less work and customers asking them to reduce their prices, but the challenge of retaining the skilled labour they have paid premiums to hire and keep, a recent conference heard.
Carbon pricing will be a good for Alberta, and it might actually help the oilpatch by pushing firms to be more efficient and cleaner in their production, says Chris Ragan, chairman of Canada’s Ecofiscal Commission.
Baytex Energy Corp. says drilling results in its Eagle Ford acquisition have exceeded expectations, outperforming type curves by about 22 per cent and driven by the drilling of longer laterals, tighter spacing of fracs and increased proppant per stage.
Trilogy Energy Corp.reported a loss of $61.01 million for 2014, compared to net earnings of $11.47 million the previous year, and is maintaining its latest spending guidance for 2015 of $100 million, which was previously lowered from original estimates (DOB, Jan. 23, 2015).
Husky Energy Inc. announces that the underwriters of its cumulative redeemable preferred shares, Series 5, offering have exercised their option to increase the size to eight million shares, due to positive investor response.
Secure Energy Services Inc. has entered into an agreement with a syndicate of underwriters pursuant to which the underwriters have agreed to purchase, on a bought deal basis, 9.56 million common shares at C$14.65 per common share for gross proceeds of approximately C$140 million.
Shell Canada Ltd. announced Wednesday it is contributing $450,000 to the TELUS World of Science – Edmonton (TWOSE) to fund its on-site school program, and unveiled a new interactive carbon capture and storage exhibit.
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