Upstream M&A In Canada Falls Away At Beginning Of 2016

Analysis in CanOils' newest report “Upstream M&A in Canada Falls Away at Beginning of 2016” shows that the Canadian oil and gas upstream sector only saw Cdn$1.7 billion worth of M&A transactions in December 2015 and January 2016 combined. While this value is low, the two months did see their fair share of intriguing and significant , all of which are covered in detail in the report. Upstream M&A in Canada Falls Away at Beginning of 2016.

The biggest story of December and January was undoubtedly Suncor and Canadian Oil Sands finally reaching a merger agreement that everybody was happy with. The largest single new deal announced in the two-month period was a Cdn$770 million deal that will see Long Run Exploration Ltd. acquired by a group of Chinese investors. Long Run had only begun a process to sell 80% of its production portfolio a month earlier, so this deal to suddenly sell off the entire company was somewhat surprising. In the period's second biggest deal, Murphy Oil and Athabasca Oil Corporation entered into a joint venture focused on the Duvernay and Montney shale in Alberta, while Husky Energy Inc. engaged multiple brokers to help sell off around 62,000 boe/d of production.

MADecJanGraphBlog2015.jpg

Source: CanOils M&A DatabaseNote: Excludes international deals involving Canadian companies. 

This combined value of Cdn$1.7 billion for December and January is a 39% drop on November, when the final total reached Cdn$2.8 billion in that month alone. However, the lack of a +Cdn$1billion deal in December and January was the main factor here. November saw a Cdn$1.8 billion deal between Canadian Natural Resources Ltd. (CNQ) and PrairieSky Royalty Ltd.(PREKF), while Suncor Energy Inc.'s (SUN) Cdn$6.6 billion offer for Canadian Oil Sands Ltd.(COSWF) was first made public in October. Both of these deals bolstered their respective monthly deal totals significantly.

Top 5 New Deals Announced in Canada – December 2015/January 2016

Print Friendly, PDF & Email
No tags for this post.

Related posts

Leave a Reply

Your email address will not be published. Required fields are marked *