In the first quarter of 2015, M&A and financing activity in the oil and gas sector was unsurprisingly slow. As we predicted early in the year, purchasers have paused to see if prices continue to fall, and targets are trying to avoid selling at the bottom of the cycle. As low commodity prices continue, we expect to see M&A activity pick up as well capitalized participants move to consolidate and expand their asset bases.
Following is a summary of M&A and financing transactions that occurred in the first quarter of 2015, with a transaction value of $150 million or greater.
| ANNOUNCEMENT DATE |
PARTIES | TRANSACTION | VALUE (CAD) |
| Public Acquisitions – E&P Companies | |||
| February 23 | Kelt Exploration and Artek Exploration | Acquisition of Artek by Kelt by arrangement | $310M |
| March 18 | Whitecap Resources and Beaumont Energy | Acquisition of Beaumont by Whitecap by arrangement | $590M |
| Private Acquisitions – Oil and Gas Assets | |||
| January 15 | Ember Resources and Encana Corporation | Acquisition of Clearwater assets by Ember from Encana | $605M |
| February 20 | Bonterra Energy | Acquisition of Pembina Cardium assets by Bonterra | $170M |
| March 12 | Tourmaline Oil and Perpetual Energy | Acquisition of West Edson assets by Tourmaline from Perpetual | $250M |
| Private Acquisitions – Other | |||
| January 5 | Canadian Non-Operated Resources and Tourmaline Oil | Acquisition of 25% interest in joint venture with Tourmaline by CNOR | $500M |
| February 25 | TC PipeLines and TransCanada Corporation | Acquisition of 30% stake in Gas Transmission Northwest by TC PipeLines from TransCanada | $555M |
| Private Equity | |||
| January 21 | CanEra III Resources | Equity line of credit led by Riverstone Holdings | $465M |
| February 4 | Prairie Storm Energy | Equity line of credit led by NGP Natural Resources XI | $400M |
| Capital Markets – Equity | |||
| February 12 | Africa Oil | Private placement of shares | $125M |
| February 17 | Cenovus Energy | Bought deal offering of shares | $1.5B |
| March 4 | Encana Corporation | Bought deal offering of common shares | $1.25B |
| March 12 | Baytex Energy | Bought deal offering of common shares | $550M |
| March 25 | Peyto Exploration and Development | Bought deal offering of common shares | $150M |
| Capital Markets – Debt & Preferred Shares | |||
| February 23 | TransCanada Corporation | Bought deal offering of preferred shares | $250M |
| March 4 | Husky Energy | Bought deal offering of preferred shares | $200M |
| March 9 | Husky Energy | Issuance of 10 year notes | $750M |
| March 18 | Inter Pipeline | Issuance of 10 year notes | $300M |
| March 18 | TransCanada PipeLines | Issuance of 30 year notes | $960M |
| March 23 | Veresen | Bought deal offering of preferred shares | $200M |
| March 31 | Pembina Pipeline | Bought deal offering of preferred shares | $200M |
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
