In advance of the well-publicized decision of the Alberta Court of Queen’s Bench regarding the matter of the disposition of the assets of insolvent RedWater Energy Corp. (“RedWater”), the Alberta Energy Regulator (“AER”) fired a shot across the bow of oil and natural gas producers, as well as the officers and directors of such entities, by issuing Bulletin 2016-10 on April 8, 2016. The stated purpose of Bulletin 2016-10 was “to remind licensees and their directors and officers of their statutory responsibilities when ceasing operations because of insolvency or for any other reason.”
June 29, 2016, 8:51 AM MDT
It is widely believed among oil analysts and market commentators that the world oil market is experiencing a ‘new normal.’ As a rule, prices for international benchmark crudes such as North Sea Brent Blend and North American West Texas Intermediate are not expected to rise above $70 to $80 per barrel.
June 28, 2016, 6 AM MDT
Oil and gas producers are in the midst of the worst downturn in a generation. While producers are accustomed to the cyclical nature of the industry, amendments the Alberta Energy Regulator (AER) made to the Licensee Liability Rating Program (LLR) in 2013 (the "2013 Amendments") have created additional challenges in this downturn for producers with limited liquidity. On June 20, 2016 the AER released Bulletin 2016-16 outlining a new policy with regards to how the AER will administer the LLR program which will have a major impact on the financial viability and strategic options of many producers.
June 23, 2016, 7:56 AM MDT
Data from CanOils’ latest M&A report shows that the total value of announced M&A deals in the Canadian E&P sector totalled C$880 million in May 2016. The report is available for download now.
June 15, 2016, 7:49 AM MDT
The proposed energy policies of Republican Donald Trump and Democrat Hillary Clinton, the presumptive nominees for the 2016 U.S. presidential race, are highly divergent and if adopted in their current forms would have significantly different impacts on the western Canadian oil and gas industry.
June 14, 2016, 8:38 AM MDT
In 2015, the total amount of capital raised in the Canadian oil and natural gas industry was $17.0 billion, with equity financings accounting for $10.5 billion, or 61% of the total. Debt financings accounted for the remaining $6.6 billion. Early in 2015, much of the equity raised was used to reduce debt with few companies tapping the equity markets in conjunction with an announced acquisition. As the year progressed the equity markets were supportive but selective in underwriting mergers and acquisitions (“M&A”) activity; this trend continued into 2016.
May 25, 2016, 7:17 AM MDT
After a year of severe cutbacks western Canadian oil and gas supply costs are coming down, making production more competitive on a global basis, according to the just released CanOils Canadian Energy Producers Benchmarking Study.
May 13, 2016, 7:56 AM MDT
While the size of the devastating wildfires in Fort McMurray is not yet fully understood, we do know that the blaze will leave a lasting scar on the community and province for many years to come.
May 12, 2016, 7:17 AM MDT
In April 2016, the total monthly value of M&A deals in the Canadian E&P sector was over C$1 billion for the first time in 2016, according to analysis in CanOils’ latest monthly M&A report.
May 10, 2016, 8:47 AM MDT
Like everyone else in the industry, Trican Well Service Ltd. has strived to cut costs throughout the current downturn, but it has had the added burden of reducing a heavy debt — much of it incurred because of a regrettable investment during better times.
May 6, 2016, 8:39 AM MDT
A detailed analysis of Canadian drilling activity in the first quarter of 2016 is now available.
May 2, 2016, 9:01 AM MDT
A total of $17.1 billion in capital was raised by the Canadian oil and natural gas industry in 2015, down 30% from the $24.6 billion raised in 2014. The decrease in total financings also led to a significant drop in the number of dealers servicing the sector.
April 27, 2016, 7:41 AM MDT
Analysis in CanOils’ new report “Upstream Oil & Gas M&A in Canada Reaches Cdn$347 Million in March 2016” shows that while March 2016 saw the lowest monthly deal value for domestic Canadian E&P assets since mid-2015, there was a distinct increase in M&A activity involving internationally-focused Canadian companies.
April 19, 2016, 7:35 AM MDT
Penn West Petroleum Ltd.’s latest asset divestiture closed on April 18, 2016, and resulted in the company receiving C$148 million for its Slave Point assets in Northern Alberta. The company is also set to receive a total of $80 million for some other non-core assets; C$50 million of this total has already been received, with the balance of C$30 million to be received before the end of June when the relevant transactions are finalized.
April 19, 2016, 8:04 AM MDT
April 14, 2016, 9:14 AM MDT
Climate change presents environmental, political, social and economic challenges worldwide. As the pressure mounts for global leaders to take action to meet the commitments they made at the UN Climate Change Conference in Paris in December 2015, Canada’s provincial governments are adopting policies to reduce greenhouse gas (GHG) emissions in the absence of a national climate change strategy.
April 12, 2016, 7:21 AM MDT
April 7, 2016, 8:49 AM MDT
April 7, 2016, 8:24 AM MDT
Analysis in Evaluate Energy’s new M&A reportshows that Q1 2016 saw the lowest number of newly announced M&A deals in the global upstream oil and gas sector — 157, excluding licensing rounds — take place than at any time during the price downturn.
April 6, 2016, 8:47 AM MDT
As prices for oil and natural gas continue to be weak, producers have chopped their capital budgets from original expectations, while cost cuts were also cited by some producers who lowered spending plans.
March 31, 2016, 9:44 AM MDT
The total enterprise value of merger and acquisition (“M&A”) transactions in the Canadian oil and natural gas industry plummeted 68% in 2015, falling to $15.9 billion from the $49.4 billion recorded in 2014. In contrast, M&A activity in 2014 had surged 254% to $49.4 billion from the $14.1 billion of M&A activity recorded in 2013. The surge in M&A activity in 2014 was primarily driven by total financings of $24.0 billion, which was the second highest value in the last decade.
March 30, 2016, 7:52 AM MDT
March 28, 2016, 9:14 AM MDT
Despite a climate of declining activity, some companies see opportunities for growth, according to the Service & Supply Outlook Report recently released by JWN and partner Grant Thornton LLP.
March 24, 2016, 8:34 AM MDT
New analysis from CanOils has shown that while the total value of Canadian oil and gas company financing arrangements being completed has fallen since the commodity price downturn began in late 2014, companies have still been able to raise finance.
March 23, 2016, 10 AM MDT
If there is a silver lining in the cloud of so much unemployed energy sector talent and experience with time on its hands, it is this: put these men and women to work building better bridges.
March 22, 2016, 8:12 AM MDT