Weekly OFS Newsletter – JANUARY 15, 2018
Mergers and Acquisitions
- Bri-Chem Corp. (TSX:BRY) announced the acquisition of two distribution warehouses for its drilling fluid products in Oklahoma. The acquisitions enables Bri-Chem to expand its US footprint into serving customers in the Arkoma Basin.
- Horizon North Logistics Inc. (TSX:HNL) completed the acquisition of the Moose Haven Lodge in Janvier, Alberta for $14 million. Horizon acquired the 288-bed open lodge located 120 km south of Fort McMurray to secure future contracts in the surrounding area. The transaction was financed by cash and Horizon’s common shares.
- In 2017, there were 10,117 new well licenses authorized in Canada, an increase of 57% from the 6,448 in 2016. Of the total, 7,945 or 86% were horizontal wells. Crescent Point Energy Corp (TSX:CPG) was the top licensee with 912 permits, followed by Canadian Natural Resources Ltd. (TSX:CNQ) with 761 and Cenovus Energy Inc. (TSX:CVE) with 526.
- The WTI-WCS differential has been increasing steadily since Q3 2017, reaching a peak of 46% at the end of December 2017. This represents the widest differential since Q1 2016. The recent widening can be attributed towards rising Canadian production and continued pipeline constraints in Canada.