{"id":4064,"date":"2018-04-06T09:31:58","date_gmt":"2018-04-06T13:31:58","guid":{"rendered":"http:\/\/lifeinsurance-orleans.ca\/Life-Insurance-Blog\/?guid=753f0d25d5299178e1f0b7deac5cc036"},"modified":"2018-04-06T09:31:58","modified_gmt":"2018-04-06T13:31:58","slug":"canadian-energy-industry-faces-extinction-without-mergers-bmo","status":"publish","type":"post","link":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/2018\/04\/06\/canadian-energy-industry-faces-extinction-without-mergers-bmo\/","title":{"rendered":"Canadian energy industry faces \u2018extinction\u2019 without mergers: BMO"},"content":{"rendered":"<p>Investors have bailed on the Canadian energy sector, although mergers &amp; acquisitions north of the border could provide a much needed catalyst, barring pipeline and political developments. Raymond James recently called upon John Connor to help save the space, and BMO Capital Markets is now calling for consolidation.<\/p>\n<p>&#8220;Incentivizing change will be paramount, but the message is clear: Merge\/innovate or face extinction,&#8221; BMO Capital Markets analysts led by Ray Kwan said in a note to clients.<\/p>\n<p>&#8220;This won&#8217;t be an overnight process and may take a number of years,&#8221; Kwan added. &#8220;While the equity markets may penalize acquirers in the short-term, we think well-priced acquisitions of quality assets can generate significant value for shareholders over time.&#8221;<\/p>\n<ul class=\"related_links\">\n<li><a href=\"http:\/\/business.financialpost.com\/commodities\/energy\/energy-reforms-are-eroding-trust-in-governments\">Regulatory \u2018poisons\u2019 are \u2018suffocating\u2019 oil industry by driving investors away<\/a><\/li>\n<li><a href=\"http:\/\/business.financialpost.com\/commodities\/energy\/why-conocophillips-is-selling-off-land-in-the-worlds-hottest-oil-play-and-buying-canadian-gas-assets\">Why ConocoPhillips is selling off land in the world\u2019s hottest oil play and buying Canadian gas assets<\/a><\/li>\n<li><a href=\"http:\/\/business.financialpost.com\/commodities\/energy\/lack-of-canadian-tax-competitiveness-discourages-even-renewable-energy\">Canada\u2019s competitiveness in big trouble as even green companies are heading for the exit<\/a><\/li>\n<\/ul>\n<p>The mix of potential M&amp;A candidates varies, with natural consolidators among the oil-weighted producers &#8220;self-explanatory,&#8221; including the likes of Canadian Natural Resources Ltd., Whitecap Resources Inc., and Torc Oil &amp; Gas Ltd., BMO said.<\/p>\n<p>For gas-focused names, the bank doesn&#8217;t &#8220;have a clear idea on who&#8221; it might be, but companies such as ARC Resources Ltd. and Tourmaline Oil Corp. contain solid balance sheets and &#8220;well respected&#8221; management.<\/p>\n<p><a href=\"http:\/\/www.bloomberg.com\/\"><em>Bloomberg.com<\/em><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>BMO Capital Markets is calling for consolidation to save the Canadian energy space<\/p>\n","protected":false},"author":578,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[],"tags":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/4064"}],"collection":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/users\/578"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/comments?post=4064"}],"version-history":[{"count":1,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/4064\/revisions"}],"predecessor-version":[{"id":4073,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/4064\/revisions\/4073"}],"wp:attachment":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/media?parent=4064"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/categories?post=4064"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/tags?post=4064"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}