May 19, 2026

Canadian Energy Services Newsletter

Mergers and Acquisitions

Production Services & Equipment

TerraVest Industries Inc. (TSX:TVK) announced the acquisition of the Canadian assets of Okotoks based Colter Energy LP via a subsidiary. The assets acquired are based in Alberta and include flowback and production testing equipment and services for the energy industry.

Infrastructure & Midstream

Keyera Corp. (TSX:KEY) closed its $5.3B acquisition of Plains All American Pipeline LP’s Canadian natural gas liquids business despite a Competition Bureau challenge.

E&P

Journey Energy Inc. (TSX:JOY) announced the disposal of its Countess assets for $7MM. The assets sold include the Countess gas field and a 4 MW power generation facility currently producing 953 boe/d.

Other

LNG & Infrastructure

The federal government and Shell are working together to make a final investment decision on the Phase II expansion of LNG Canada by the end of 2026. The expansion would double the current 14MM metric tons per year capacity at full production.

Pipelines & Government Policy

The federal government and the Alberta government are working towards construction approval of a new oil pipeline by September 2027, with oil flowing by 2033–34. The deal also includes lowering the carbon price for Alberta to $130 a tonne by 2040 instead of 2030.

Global Markets & Outlook

OPEC reduced its 2026 global oil demand growth forecast from 1.38MM bpd previously to 1.17MM bpd. Global oil demand is expected to average 104.56MM bpd in Q2, revised lower from the 105.07MM bpd forecast last month.

Crude Supply & Storage

The U.S. announced its Strategic Petroleum Reserve will loan U.S. energy companies 53.3MM bbls of crude in response to current global oil prices. This follows a loan of 80MM bbls earlier this spring.

Macroeconomic Trends

According to Statistics Canada, Canadian inflation rose to 2.8% in April (up from 2.4% in March), primarily driven by the surge in gasoline prices as a result of the US-Iran war. Excluding gasoline, Canadian inflation was 2.0% in April (down from 2.2% in March).

Quarterly Financial Update

$MM	Revenue		Adjusted EBITDA
For the 3 months ended Mar. 31,	2026	2025	2026	2025
Calfrac Well Services Ltd.	305	370	50	55
Keyera Corp.	1,301	1,760	203	298
Trican Well Service Ltd.	330	259	78	70

Market Data

North American Drilling Rig Activity	For the Week Ending		Change Week-Over-Week	Previous Year	Change Year-Over-Year
	15-May-26	8-May-26		15-May-25
Canada
Active Rig Count	141	136	3.7%	126	11.9%
Rig Fleet Size	335	334	1	373	(38)
Utilization Rate	42%	41%	1.4%	34%	8.3%
USA
Active Rig Count	551	548	0.5%	578	(4.7%)

US Crude and Natural Gas	For the Week Ending		Change Week-Over-Week	Previous Year	Change Year-Over-Year
	8-May-26	1-May-26		8-May-25
Crude
Production (kbpd)	13,710	13,573	1.0%	13,367	2.6%
Storage Level (kbbl)	452,876	457,182	(0.9%)	438,376	3.3%
Injection/(Withdrawal) (kbbl)	(4,306)	(2,313)
Natural Gas
Storage Level (Bcf)	2,290	2,205	3.9%	2,145	6.8%
Injection/(Withdrawal) (Bcf)	85	63	34.9%	104	(18.3%)

Commodity Prices	Current Week	Previous Week	Change Week-Over-Week	Previous Year	Change Year-Over-Year
	15-May-26	8-May-26		16-May-25
Crude Oil ($US/bbl)
WTI	105.65	94.72	11.5%	62.72	68.4%
Brent	109.47	100.25	9.2%	65.41	67.4%
WCS	93.07	83.07	12.0%	49.62	87.6%
Discount to WTI ($)	12.58	11.65	8.0%	13.10	(4.0%)
Discount to WTI (%)	11.9%	12.3%	(0.4%)	20.9%	(9.0%)
Natural Gas
Nymex ($US/MMBtu)	2.96	2.75	7.6%	3.33	(11.1%)
Aeco ($C/MMBtu)	1.18	1.10	7.3%	1.34	(11.9%)