M&A Deals in Canada were up 30% in value terms during the first half of 2014, largely driven by energy companies which contributed 35% to total deal value. According to data provided by Bloomberg, Canadian companies announced deals worth $85.6 billion during the first six months of the year which included $30.6 billion worth of deals in the energy sector, up 209% year-over-year. The sector witnessed renewed interest following the cold winter which boosted gas demand and the Middle East unrest which led to oil price hikes. Investment bankers forecast that the outlook for future deals appears stronger for the second half of the year, particularly in Energy, Infrastructure and other diversified industries, as access to capital remains easy and economic growth is forecast to pick up. Deal activity in the energy sector is poised to pick up further driven by the country’s rapidly developing shale oil and gas properties rather than its better known oil sands.
Today we have highlighted 11 notable acquisition
deals of the Canadian energy sector announced during the first half of 2014. We note that the acquiring company stocks have accumulated gains during the past six month with daily average trading volume in excess of 100,000 shares.
|
Acquiring Company |
Exchange |
Ticker |
Market Cap |
Last Price |
Average Volume |
Price Return |
Target Company |
Announced Deal Value (C$ Bn) |
Payment Type |
Deal Status |
|
Surge Energy Inc |
TSX |
SGY |
1.7 |
7.73 |
3,349,503 |
16.9% |
Light oil producing assets |
109.0 |
Cash |
Completed |
|
Whitecap Resources |
TSX |
WCP |
3.8 |
15.72 |
3,270,733 |
27.5% |
Western Canada conventional oil & gas assets |
855.0 |
Cash |
Completed |
|
Surge Energy Inc |
TSX |
SGY |
1.7 |
7.73 |
3,349,503 |
16.9% |
Longview Oil Corp |
372.2 |
Stock |
Completed |
|
Crew Energy Inc |
TSX |
CR |
1.4 |
11.36 |
1,731,111 |
74.2% |
Montney natural gas properties |
105.0 |
Cash |
Completed |
|
Legacy Oil + Gas Inc |
TSX |
LEG |
1.8 |
9.24 |
2,059,580 |
57.9% |
Highrock Energy Ltd |
191.9 |
Stock |
Completed |
|
ShawCor Ltd |
TSX |
SCL |
3.3 |
55.17 |
243,121 |
35.6% |
Desert NDT LLC |
281.8 |
Cash |
Completed |
|
Enerflex Ltd |
TSX |
EFX |
1.6 |
20.18 |
148,037 |
34.1% |
Assets of Axip Energy |
466.6 |
Cash |
Completed |
|
Kelt Exploration Ltd |
TSX |
KEL |
1.9 |
15.18 |
750,065 |
58.5% |
Unnamed Target |
163.4 |
Cash & Stock |
Completed |
|
Ithaca Energy Inc |
TSX |
IAE |
0.9 |
2.69 |
996,614 |
-2.9% |
Summit Petroleum Ltd |
182.5 |
Cash |
Pending |
|
Legacy Oil + Gas Inc |
TSX |
LEG |
1.8 |
9.24 |
2,059,580 |
57.9% |
Corinthian Exploration Corp |
217.9 |
Stock |
Completed |
|
Bonavista Energy Corp |
TSX |
BNP |
3.1 |
15.48 |
921,282 |
8.7% |
Certain Assets |
141.0 |
Cash |
Pending |
Source: Bloomberg
Company Description
Surge Energy Inc (TSX: SGY)
Surge Energy, Inc. explores for oil and natural gas. The company operates in Alberta and Manitoba in Canada.
Whitecap Resources Inc (TSX: WCP)
Whitecap Resources, Inc. explores for oil and natural gas. The company operates in western Canada.
Crew Energy Inc (TSX: CR)
Crew Energy Inc. acquires, explores, and develops oil and natural gas properties. The company is currently producing natural gas and light oil and liquids in Alberta and Saskatchewan, both located in Canada.
Legacy Oil + Gas Inc (TSX: LEG)
Legacy Oil + Gas Inc. is an intermediate oil and natural gas company. The company’s light assets are focused in the Williston Basin and southwest Alberta. The majority of Legacy’s production is from Turner Valley, the Bakken light oil resource play in southeast Saskatchewan and the Spearfish light oil resource play in Manitoba and North Dakota.
ShawCor Ltd (TSX: SCL)
ShawCor Ltd. is an energy services company focusing on technology-based products and services. The company serves exploration and production, pipeline, petrochemical, and industrial markets around the world. ShawCor operates through its partial interest in Bredero-Shaw, and through its OMSCO, Guardian, Shaw Pipeline Services, Canusa-CPA, DSG-Canusa, and ShawFlex business units.
Enerflex Ltd (TSX: EFX)
Enerflex Ltd. provides oilfield services for natural gas and petroleum producers. The company markets its services for natural gas compression, oil and gas processing, refrigeration systems, and power generation equipment to customers worldwide.
Kelt Exploration Ltd (TSX: KEL)
Kelt Exploration Ltd is an oil and gas exploration and production company. The company owns properties at Grande Cache, Alberta; Inga, British Columbia; and Karr, Alberta.
Ithaca Energy Inc (TSX: IAE)
Ithaca Energy, Inc. explores, develops and produces oil and gas in the North Sea. The company owns and operates a diverse portfolio of development and production assets through acquisition and participation.
Bonavista Energy Corp (TSX: BNP)
Bonavista Energy Corporation produces oil and natural gas. The company operates in Alberta, Saskatchewan, and British Columbia.
