Canadian Oil Companies on Shopping Spree as Merger and Acquisition Activity Accelerates

Merger and acquisition activity was already starting to advance in Canada’s oil patch when, south of the border, ExxonMobil Corp.worth a combined US$112-billion earlier this month. Now, with lots of cash, little debt, rising stock prices and a need to keep up with the Joneses, Canadian oil companies are going shopping.

Debt is not just down among oil and gas companies, but it is staying down. Energy producers in Canada are expected to cumulatively repay more than $19-billion in debt this year, according to an estimate BMO published in January. The current wave of consolidation could be similar to what occurred between 1998 and 2002, when 12 of the largest global integrated oil companies merged into five companies, Scotiabank analyst Paul Cheng said in a note to clients on Oct. 23.

“They’ve done their share buybacks. They’ve increased their dividends and reduced their debt, but I think a lot of investors are starting to ask ‘What are you doing now?’”

Belgique Dernières Nouvelles, Belgique Actualités

Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.

Pressure Mounts on Oil and Gas Companies for Excess Profits TaxOil and gas companies are facing political pressure on Parliament Hill, with calls for a tax on their excess profits gaining support across party lines. Accusations of price gouging and profiting off climate chaos are also being made. The Liberal government has already introduced an excess profits tax on banks and life insurance firms, and now there are demands to apply it to the oil and gas industry.
La source: CBCCalgary - 🏆 78. / 51 Lire la suite »

Emerging-market Companies Face Refinancing Challenges as Borrowing Rates SurgeGlobal borrowing rates surge to highest levels since financial crisis, halting refinancing opportunities for $400 billion worth of debt maturities. Refinancing challenges likely to worsen as another $300 billion worth of corporate bonds come due in 2025. Some emerging-market companies, particularly from China, Argentina, Brazil, and Ukraine, are vulnerable to failed refinancing deals, leading to defaults or bankruptcies.
La source: YahooFinanceCA - 🏆 47. / 63 Lire la suite »

Activist leaders are needed for today’s responsible companies‘Corporations can bring a pragmatism that means they are probably the organization that can drive most change in today’s society’
La source: globeandmail - 🏆 5. / 92 Lire la suite »