Canadian Upstream Oil And Gas M&A Hits C$32.8 Billion In March 2017

Major deals in the oilsands sector meant that the total upstream M&A spend in March 2017 alone eclipsed the annual totals for each of the past five years except for 2014, according to CanOils’s latest monthly M&A review, which can be downloaded here.

Source: CanOils M&A Review, March 2017 (All deals are allocated according to the date of their original announcement)

C$32.1 billion of the total C$32.8 billion spend in March revolved around oilsands assets. Cenovus Energy Inc. (TSX:CVE) bought out its 50 per cent joint venture partner, ConocoPhillips (NYSE:COP) in the FCCL partnership, Canadian Natural Resources Limited (CNRL, TSX:CNQ) acquired a 70 per cent interest in the AOSP from Royal Dutch Shellplc (LSE:RDSA) and Marathon Oil Corporation (NYSE:MRO). Shell itself also acquired a minor stake in AOSP from Marathon to complete the spending.

Away from the oilsands, it was also a relatively busy month considering recent deal trends, with over C$700 million spent on conventional and resource play assets. The largest deal saw Painted Pony Petroleum Ltd. (TSX:PPY) acquire 8,500 boe per day of new Montney production, while Enerplus Corporation (TSX:ERF) and Pengrowth Energy Corporation (TSX:PGF) agreed significant asset sales as well.

March also saw Cenovus place nearly 30,000 boe per day of gas weighted production over one million acres up for sale. Birchcliff Energy Ltd. (TSX:BIR) and Insignia Energy Ltd. (TSX:ISN) were among the other companies to list assets for sale.

For full analysis on all these deals and assets for sale, as well as an outlook for the Canadian oilsands industry, download the CanOils Monthly M&A Review for March 2017 here.

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