Sequeira Energy Synopsis – August 2018 Newsletter

Our Sequeira OFS Index was up 3.2% month-over-month and up 5.2% year-over-year to the end of August. Canadian OFS stocks rallied through August before experiencing a pull-back the last week due to the reversal of the Trans Mountain pipeline expansion approval. The reversal served to re-emphasize the significant take-away capacity constraints limiting oil production growth in the WCSB; however, the pull-back may be an overreaction, as analysts have highlighted that many Canadian OFS stocks are often highly geographically diversified. Completions businesses in particular are more heavily-weighted to high frac-intensity liquids-rich gas plays and are looking ahead to an FID on LNG Canada.

Download the Sequeira Energy Synopsis – August 2018