As we head into Q2 2018 earnings season, there are a lot more reasons to be optimistic about Canada’s oil and gas industry than in years past. Crude prices have been on the rise and gas prices, while challenged, may be supported by a Shell led positive FID for LNG Canada. The impact of the project would be felt across several oilfield service segments notably workforce accommodations, heavy-haulers, pressure pumpers, and contract drillers. While the timing of the project’s impact will vary for each segment the overall impact will undoubtedly be a big boost to Canada’s oil and gas industry.
Within the oilfield and industrial industry segments, Q2 2018 saw 66 disclosed transactions with either a Canadian target or buyer. Of the 66 transactions, only 13 (20%) were specific to the oilfield services sector – a decrease of one transaction over the previous quarter. A list of all the Canadian oilfield service and industrial transactions in the quarter are included in Appendix B of the newsletter.