Eric NuttallEric Nuttall thinks Torc oil Tamarack energy and Whitecap Resources will buy up oil assets soon As C
reditors push oil producers to sell assets or sell themselves outright, there’s been an uptick in Canadian oilpatch deals over the summer. Since June, there have been five M&A deals valued at $828 million, according to FP Data, taking year-to-date figures to $1.65 billion across 23 deals. In contrast, there were 42 M&A deals during the same period valued at $15.47 billion. This week, Whitecap Resources Inc. used its stock to buy Manulife Financial-backed NAL Resources in a deal worth $155 million. Whitecap believes it’s in a position to do more deals.
“At this point in time, we believe that rather than drilling out your inventory for very limited return, there’s potential to increase your inventory through acquisitions,” Whitecap President and CEO Grant Fagerheim said on a conference call with analysts after announcing the NAL deal. “We’ll continue to be active in looking for other opportunities to strengthen our company for the longer term.”.....