• Connect with us
    • Information
      • About Us
      • Contact Us
      • Careers
      • Partnerships
      • Advertise With Us
      • Authors
      • Browse Topics
      • Events
      • Disclaimer
      • Privacy Policy
    • Australia
      North America
      World
    Login
    Investing News NetworkYour trusted source for investing success
    • North America
      Australia
      World
    • My INN
    Videos
    Companies
    Press Releases
    Private Placements
    SUBSCRIBE
    • Reports & Guides
      • Market Outlook Reports
      • Investing Guides
    • Button
    Resource
    • Precious Metals
    • Battery Metals
    • Base Metals
    • Energy
    • Critical Metals
    Tech
    Life Science
    Energy Market
    Energy News
    Energy Stocks
    • Energy Market
    • Energy News
    • Energy Stocks
    oil and gas investing

    Canadian Oil and Gas M&A Up, Keeping Pace with Global Sector Trends

    Georgia Williams
    Jun. 26, 2018 02:55PM PST
    Energy Investing
    TSX:HSE

    In May, upstream sector divestments reached C$4.5 billion, the highest since March 2017. Part of the sector growth came as a result of Vermillion Energy finalizing its C$1.4 billion acquisition of Spartan Energy.

    The first half of 2018 has been especially fruitful for the oil and gas sector, as mergers and acquisitions (M&A) have helped major players consolidate their viable projects and finances.

    Canada in particular has benefited from the pro M&A environment. In May, upstream sector divestments reached C$4.5 billion, the highest since March 2017. Part of the sector growth came as a result of Vermillion Energy (TSX:VET) finalizing its C$1.4 billion acquisition of Spartan Energy (TSX:SPE). The merger added an additional 23,000 barrels of oil equivalent per day (boe/d) to Vermillion’s portfolio.

    When asked about the deal ahead of the May acquisition, Vermillion CEO Tony Marino said that his company was especially interested in energy assets that were ‘unloved’ with low valuations.


    “The Canadian sector continued to be more and more unloved over time, especially in the past year in the capital markets, and with our evaluation methodology and criteria we had, we found it came to represent better and better value,” he said.

    “Spartan is probably the best example of this out there in that you have a company that is quite capable of rapid production growth.”

    Also in May, Royal Dutch Shell (LSE:RDSA) decided to shed its 7.98-percent stake in Canadian Natural Resources (TSX:CNQ) for C$4.2 billion. The move is part of an ongoing effort by the oil and gas giant to consolidate projects and reduce debt. Since 2015, Shell has sold off more than US$34 billion in assets and business units.

    These two most recent Canadian M&A are representative of a larger global trend throughout the sector. At the beginning of June, EY released its eighth oil and gas capital confidence barometer, citing 90 percent of oil and gas executives expect the global M&A market to improve over the next 12 months.

    “An improving macro environment evidenced by indicators, such as oil price stabilization and continued growth in demand, along with economic discipline by OPEC and non-OPEC members, has raised confidence in oil and gas executives over the past six months, according to the latest edition of the Capital Confidence Barometer,” Andy Brogan, EY global oil and gas transactions leader noted.

    In terms of large international deals, Canadian companies are also raising the stakes. Calgary-based Suncor Energy (TSX:SU) completed a US$68 million deal in Norway to gain an interest in the Fenje development project.

    Husky Energy (TSX:HSE) also signed two new production sharing contracts with CNOOC (TSX:CNU)  to add to its South China Sea portfolio.

    The series of deals reflect an optimistic outlook that is sector-wide, according to the EY report.

    “More than 44 percent of the oil and gas company respondents believe the global economic situation is improving, up from 27 percent in October 2012,” states the report. “There has also been a decrease in the number of companies who report declining sentiment, from 23 percent to 17 percent.

    As Q2, draws to a close it will be interesting to see the reported profits and future acquisitions the oil and gas sector has coming down the pipeline.

    Brent crude was up 1.49 points on Tuesday (June 26), sitting at US$76.04 a barrel midday.

    Don’t forget to follow us @INN_Resource for real-time updates!

    Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.

    oil and gas investingtsx:hsehusky energyroyal dutch shelltsx:sutsx:vet
    The Conversation (0)

    Go Deeper

    AI Powered
    Silhouette of drilling rigs and oil derricks with Canadian flag in background.

    5 Best-performing Canadian Oil and Gas Stocks of 2025

    Oil pumps and stock market graphs merging in a digital overlay.

    Oil and Gas Price Update: Q3 2025 in Review

    Latest News

    Alvopetro Announces September 2025 Sales Volumes, Quarterly Natural Gas Price Update, Non-Core Disposition and Western Canadian Expansion

    Angkor Resources Completes First Onshore Seismic Program in Cambodia; Vanderbilt Report Publishes Coverage

    CHARBONE Hydrogene securise les actifs de production d'hydrogene d'Harnois Energies pour accelerer la production d'hydrogene propre a ultra haute purete a Sorel-Tracy

    CHARBONE Hydrogen Secures Harnois Energies' Hydrogen Assets to Accelerate Clean Ultra High Purity Hydrogen Production at Sorel-Tracy

    AEG Confirms Pre-Sale of 35% of Initial 8 MW UAE Capacity with Strong Revenue Outlook and Clear Expansion Path

    More News

    Outlook Reports world

    Resource
    • Precious Metals
      • Gold
      • Silver
    • Battery Metals
      • Lithium
      • Cobalt
      • Graphite
    • Energy
      • Uranium
      • Oil and Gas
    • Base Metals
      • Copper
      • Nickel
      • Zinc
    • Critical Metals
      • Rare Earths
    • Industrial Metals
    • Agriculture
    Tech
      • Artificial Intelligence
      • Cybersecurity
      • Gaming
      • Cleantech
      • Emerging Tech
    Life Science
      • Biotech
      • Cannabis
      • Psychedelics
      • Pharmaceuticals

    Featured Energy Investing Stocks

    Charbone Hydrogen

    CH:CC

    Alvopetro Energy

    ALV:CC

    Coelacanth Energy

    CEI:CC

    Jupiter Energy

    JPR:AU

    First Helium

    HELI:CA

    Source Rock Royalties

    SRR:CC
    More featured stocks

    Browse Companies

    Resource
    • Precious Metals
    • Battery Metals
    • Energy
    • Base Metals
    • Critical Metals
    Tech
    Life Science
    MARKETS
    COMMODITIES
    CURRENCIES