• Canadian oilpatch deals since the pandemic crushed prices

    Source: Financial Post - Top Stories / 25 Oct 2020 18:16:56   America/New_York

    CALGARY – Since the coronavirus pandemic caused oil prices to crater this year, energy sector companies have been striking deals in an attempt to scale up. In Canada and the U.S., companies have been buying their competitors at a fraction of their value from just a year ago. In October alone, Houston-based ConocoPhillips Co. spent US$9.7 billion to buy Concho Resources and San Ramon, Calif.-based Chevron Corp. announced a deal worth US$13 billion including debt to buy Noble Energy. Cenovus Energy Inc.’s deal Sunday to buy Husky for $3.8 billion plus the assumption of Husky’s $5.2 billion in long-term debt marks the biggest deal of the year between two Canadian oil and gas companies, but it’s not the first. Cenovus to buy Husky for $3.8 billion to create Canada’s No.3 energy company Alberta to scrap oil production limits in December with demand for heavy oil poised to rise Heavy oil scarcity to boost Canadian oilsands prices next year ConocoPhillips buys natural gas assets from Kelt Exploration Ltd. Calgary-based Kelt Exploration had almost reached its limit on its bank lines before selling 140,000 acres of natural gas properties to Houston-based ConocoPhillips on July 22 for $510 million in cash. The deal eliminated Kelt’s debt. Canadian Natural Resources Ltd. buys Painted Pony Petroleum Canada’s largest oil and gas company CNRL announced on Aug. 10 it would pay $111 million in cash to buy Painted Pony, a mid-sized natural gas producer, and assume its $350 million of debt. Analysts described the The $461-million deal as a best-case scenario for Painted Pony, which had been struggling to raise capital following the pandemic. Obsidian Energy Ltd. offers to buy Bonterra Energy Corp. Heavily indebted Obsidian hoped shareholders of Bonterra Energy will swap shares in their company for shares in Obsidian when it announced an unusual, all-share hostile takeover bid on Aug. 31. Bonterra, which was worth roughly $50 million at the time, had previously rebuffed merger talks with Obsidian, which had a market capitalization of $45 million. Whitecap Resources Ltd. buys NAL Resources Manulife Financial Corp. had been looking for a way to sell off portfolio company NAL Resources and this year found a buyer in Whitecap Resources Ltd., which announced a $155-million deal to buy NAL on Aug. 31. TC Energy Corp. buys TC Pipelines LP Calgary-based pipeline giant TC Energy Corp., previously known as TransCanada, announced Oct. 5 its intention to buy the remaining shares in a subsidiary called TC Pipelines LP. The parent company is offering to exchange its own shares for the subsidiary in a deal worth just shy of $1.5 billion. AltaGas Ltd. increases its stake in Petrogas AltaGas announced on Oct. 16 it would spend $715 million to buy up an additional 37 per cent stake in privately held Calgary-based midstream company Petrogas Energy Corp., a deal which would give AltaGas a 74 per cent ownership stake in Petrogas. As a result, AltaGas will now own two facilities to export liquid propane to markets in Asia. • Email: gmorgan@nationalpost.com | Twitter: geoffreymorgan http://feedproxy.google.com/~r/FP_TopStories/~3/7YCaErLzdbY/canadian-oilpatch-deals-since-crude-prices-slumped-because-of-pandemic
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