August 3, 2023--Researched by Industrial Info Resources (Sugar Land, Texas)--It's as predictable as a Doris Day movie: When commodity prices soften, oil and gas companies nourish themselves by gobbling up their smaller peers. With oil and gas down from their post-pandemic highs, it is enough to push at least one Canadian oil and gas producer to sell off: Pipestone Energy Corporation (Calgary, Alberta), which announced it will be purchased by Strathcona Resources Limited (Calgary) in an all-stock deal, which will make Strathcona the fifth-largest oil and natural gas liquids (NGL) producer in Canada.
Industrial Info is tracking more than US$710 million in active or proposed projects involving Pipestone, and multiple facilities run by both companies. The transaction is expected to close early in the fourth quarter of 2023, pending approval from shareholders and regulators. The new company, which will be publicly traded and retain Strathcona's name, is expected to have a market capitalization of C$8.6 billion (US$6.49 billion).
Other companies featured: Keyera Corporation, Precision Drilling Corporation (NYSE:PDS) and Waterous Energy Fund.
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