By The Canadian Press

‘Troubled children’ failures restore stability for rest of Canadian oilpatch

Nov 28, 2016 | 7:12 AM

CALGARY – Mergers and acquisitions experts predict fewer Canadian oil and gas companies will go bust over the next year, in part because many of the weaker companies have already failed or been sold.

Higher oil and natural gas prices have brought a measure of stability to the sector in Western Canada, they say.

Calgary-based Sayer Energy Advisors reports that 26 Canadian energy companies have entered into a court-monitored receivership or restructuring process so far this year.

That’s up from 20 in 2015 and a far cry from the typical annual toll of just eight or so failures each year.

Sayer vice-president Tom Pavic predicts more energy mergers and acquisitions will take place over the next year because buyers and sellers are becoming more closely aligned on how much assets are worth after two years of slumping commodity prices.

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The company says $17.8 billion in oil and gas deals took place in Canada through the first nine months of 2016, up from $15 billion in all of 2015, but well short of the $49 billion recorded in 2014.

(The Canadian Press)