Since the launch of the company, Earth Horse has released monthly market overviews detailing the movements in share prices of E&P companies on both the TSX and TSX-Venture exchanges, along with  the relevant commodity prices. In addition, Earth Horse outlines the M&A activity, executive and board changes, financings and any noteworthy news that was released in the month. These reports are sent directly to our subscribers and are posted on LinkedIn. 

If you would like to receive these reports directly in your inbox, subscribe today!

In addition, Earth Horse has provided additional special reports with an array of detailed comparable analysis of various segments. 

Monthly Market Overviews

2022

July 2022

During July 2022 the majority of the 48 publicly traded TSX E&P companies rebounded from their June declines. There were a total of 41 companies that rose quarter over quarter, while seven companies fell during the month. Overall, the average increase in July 2022 was 9.27% while the median rise was 10.38%.

During July, the prices of liquids continued to be volatile, eventually ending the month down. The price of WTI and Edmonton Par were down 7.07% and 7.57% respectively while WCS was down 15.94% and C5+ dropped 5.06%.  There continued to be concerns that rising inflation and aggressive interest rate hikes could slow the global economy and reduce fuel demand.

The prices of natural gas in North America spiked with NYMEX increasing 44.50% and AECO jumped 24.93% as hot weather spread across the continent spiking demand domestically.

In July 2022, there were six transactions announced in the Canadian oil & natural gas sector for total enterprise value of $474.0 million.

The largest transaction in July involved Tourmaline Oil Corp. which announced that it entered into a binding agreement to acquire Rising Star Resources Ltd. for $194.3 million.

June 2022

June 2022 was a trying month for the vast majority of the 48 publicly traded TSX E&P companies. Only two companies (Questerre Energy Corporation and Kiwetinohk Energy Corp.) had an increase in their share price while the remaining 46 companies were down month-over-month. Overall, the average decline in June 2022 was 17.53% while the median fall was 18.47%.

During June, the prices of liquids fell after nearly two months of steady increases. The price of WTI and Edmonton Par were down 7.77% and 10.13% respectively; WCS was down 4.87%.

The prices of natural gas in North America had a significant pullback in June which was a result of Freeport LNG announcing that its export plant in Texas experienced an explosion. The price of NYMEX natural gas dropped 37.87% in June, falling to USD $5.42/Mmbtu by the end of the month. AECO fell 40.88% month-over-month, closing at USD $3.37/Mmbtu. 

In June 2022, there were three significant M&A transactions announced in the Canadian oil & natural gas sector. The total aggregate transaction value of the deals was $2.56 billion with a total of 61,000 boe/d changing hands. There were three additional deals that occurred but were not announced; the deals had an estimated transaction value of nearly $200.0 million.

May 2022

During May 2022, 45 of the 48 publicly traded TSX E&P companies (Tenaz Energy Corp. graduated to the TSX on May 17, 2022) had an increase in their share price, one was flat (Prairie Provident Resources Inc.) and two (Questerre Energy Corporation and Rubellite Energy Inc.) fell month-over-month. Overall, the average rise in May 2022 was 15.27% while the median increase was 9.98%.

During May, the prices of liquids continued to move higher with the price of WTI and Edmonton Par up 9.53% and 9.27% respectively. WCS was up 5.58% and averaged USD$94.83/bbl. The price of C5+ increased 3.54%, ending the month at USD$106.07/bbl.

The prices of natural gas continued to soar in May, hitting levels not seen since 2008.The price of NYMEX natural gas spiked a further 20.58%, averaging USD $8.16/Mmbtu in May while closing at USD $8.36/Mmbtu after reaching over USD $9.00/Mmbtu. AECO climbed 9.40% month-over-month and averaged USD $5.88/Mmbtu. At the end of May, the natural gas futures for June traded at a premium over July for the first time since the future began trading in 2009. 

In May 2022, there were five M&A transactions announced in the Canadian oil & natural gas sector.

 

April 2022

During April 2022, 29 of the 47 publicly traded TSX E&P companies had an increase in their share price, two were flat and the remaining 16 companies fell month-over-month. Overall, the average rise in April 2022 was 4.57% while the median increase was 3.23%. 

During April, the prices of liquids continued to move higher with the price of WTI and Edmonton Par up 4.40% and 5.18% respectively. During the month, the price of oil continued to be impacted by the Russia-Ukraine war, lock downs in China and the release of strategic oil reserves.; US President Biden announced the release of 1.0 million barrel per day for the next six months. 

The prices of natural gas soared in April, climbing to its highest level in more than a decade. The price of NYMEX natural gas spiked a further 26.57% ending the month at $7.24/Mmbtu while AECO was up 21.16%, settling at $5.21/Mmbtu.

In April 2022, there were two M&A transactions announced in the Canadian oil & natural gas sector. The transactions involved the acquisitive Tamarack Valley Energy Ltd. which announced that it entered into a definitive agreement to acquire Rolling Hills Energy Ltd., a privately held pure play Clearwater oil producer, for total consideration of $93.8 million and another included a second strategic partnership with the Peavine Metis Settlement.

March 2022

During March 2022, the vast majority of publicly traded TSX E&P companies had an increase in their share price with 38 companies seeing a gain while two were flat and seven fell month-over-month.

During the month, oil prices were volatile. WTI reached a high of USD$130.50/bbl and a low of USD$93.53/bbl and averaged USD$108.26/bbl; Edmonton Par’s March 2022 average was slightly higher than WTI at USD$108.39/bbl.

The prices of natural gas roared ahead.  The price of NYMEX natural gas spiked 27.96% while AECO was up 11.11%.  

In March 2022, there were a number of M&A transactions announced  which included five corporate transactions and various asset deals with a total transaction value of approximately $726.9 million.

February 2022

During February 2022, the vast majority of publicly traded TSX E&P companies had an increase in their share price with 42 companies in the green and only four companies had their share price decline.  

During February, the prices of liquids continued to move higher.  The most significant recent event was the invasion of the Ukraine by Russia on February 24th; Russia’s invasion caused widespread sanctions from countries around the world which include a ban on Russian oil imports.

The prices of natural gas, on the other hand, slipped slightly in February. Weather was a permitting factor in February.

In February 2022, three M&A transactions were announced in the Canadian oil & natural gas sector with total transaction value of approximately $80.5 million. 

January 2022

The beginning of 2022 started off well with shares of publicly traded TSX E&P companies charging forward. During January 2022, there was continued strength in the share price of most of the TSX-listed Canadian oil & natural gas focused companies. Of the 46 companies listed on the TSX exchange, 43 companies had their share price increase. 

During January, commodities were on a tear. The price of WTI crude increased 17.27%, Edmonton Par was up 17.23% and WCS increased the most, increasing a further 20.22% to end at $74.07/bbl.

The rise in natural gas prices have been more impressive than crude oil. NYMEX natural gas increased 24.40%, and AECO was up 18.34%.

In January, there was only one small transaction announced. 

Monthly Market Overviews

2021

December 2021

During December 2021, there was broad strength in the share price of most of the TSX-listed Canadian oil & natural gas focused companies.

WTI Oil bounced 13.64% while Edmonton Par was up 17.67% and WCS jumped 26.12%. Natural gas prices fell, with NYMEX and AECO down 31.56% and 15.92% respectively.

Questerre Energy Corporation increased from $0.14/share to $0.24/share, or 71.43%. 

In December 2021, there were six transactions announced in the Canadian oil & natural gas sector with total transaction value of approximately $1.35 billion.

November 2021

During November 2021, there was weakness in the share price of many of the TSX-listed Canadian oil & natural gas focused companies.

During November, crude oil fell on news of a new variant of COVID-19 being detected in Africa (named Omicron) near the end of the month and concerns of swelling supplies.

NYMEX natural gas was flat month-over-month while AECO fell 14.29%.

In November 2021, there were seven transactions (6 asset deals and 1 corporate transaction) with total transaction value of approximately $2.0 billion.

October 2021

During October 2021, strength continued to buoy many of the TSX-listed Canadian oil & natural gas focused companies. 

AECO spiked 21.19% in the month while NYMEX was down 3.38%. WTI oil was up 11.58%, Edmonton Par was up 9.41% and WCS edged up 6.90%.

The top performer was Perpetual Energy Inc. which was up 112.5% increasing from $0.32/share to $0.68/share.

The TSX-V E&P companies had an average increase of 3.00%.

There were $398.9 million in M&A transactions announced in the month from four different companies. 

September 2021

During September 2021, strength returned to the Canadian oil & natural gas sector as most of the TSX-listed E&P companies with operations focused mainly in Canada rallied. Of the 46 companies listed on the TSX exchange (effective September 1, 2021 Spartan Delta Corp. commenced trading on the TSX under the symbol ”SDE” and delisted from the TSX Venture Exchange), 44 companies had their share price improve. 

Commodities were up across the board with oil up 9.81% to 17.59% and natural gas up 26.47% (AECO) and 28.60% (NYMEX). 

In September 2021, there were a total of six E&P deals announced in the Canadian oil & natural gas sector.

July/August 2021

During the summer of 2021, there was weakness in the share prices of most TSX-listed E&P companies. Of the 45 companies listed on the TSX exchange, only four had their share price improve over the two-month period, one company, Questerre Energy Corporation was flat and the remaining 40 companies declined.

The top performer was Perpetual Energy Inc. which was up 41.67% increasing from $0.24/share to $0.34/share over the two-month period. Perpetual spun out its Clearwater assets to a newly created company named Rubellite Energy Inc.

In July 2021, there were a total of 11 E&P deals announced; there was only one deal announced in August.  

June 2021

During the month of June 2021, 43 of the 45 TSX-listed E&P companies experienced an increase in their share price. The increase of those that rose ranged from 0.23% to 96.30%, with an average of increase of 24.22%.

AECO and NYMEX continued to increase month-over-month, rising 11.72% and 17.60% respectively. WTI crude oil increased 10.04%, while Edmonton Par and Western Canadian Select had more substantial increases, rising 13.70% and 15.58% respectively.

The three biggest movers to the upside during June were Obsidian Energy Ltd., Crew Energy Inc. and Journey Energy Inc. increasing 96.30%, 88.89% and 72.22% respectively.

May 2021

During the month of May 2021, 40 of the 45 TSX-listed E&P companies experienced an increase in their share price. The increase of those that rose ranged from 0.55% to 55.77%, with an average of increase of 17.18%.

The three biggest movers to the upside during on the TSX in May were Gear Energy Ltd., Prairie Provident Resources Inc. and InPlay Oil Corp., increasing 55.77%, 44.44% and 41.51% respectively. 

As for the TSX-Venture, increases ranged from 2.21% to 153.85% Razor Energy Corp. had the largest increase, followed by Saturn Oil & Gas Inc. at a 66.67% increase and Pulse Oil Corp. rounded out the top three with a 60% increase in its share price.

There were a total of 11 E&P deals announced in the Canadian oil & natural gas sector with total enterprise value of $809 million. 

April 2021

During the month of April 2021, 27 of the 45 TSX-listed E&P companies experienced an increase in their share price. The increase of those that rose ranged from 0.08% to 37.55%, with an average of increase of 9.69%. The remaining 18 companies experienced a decline in their share price; the declines ranged from 0.11% to 18.18% with an average decline of 5.13%. As a group, the average gain in the month was 3.76% while the median gain was 1.96%.

The three biggest movers to the upside on the TSX during April were Advantage Oil & Gas Ltd., Petrus Resources Ltd. and Birchcliff Energy Ltd., increasing 37.55%, 29.27% and 19.54% respectively.

In April 2021, there were six E&P deals announced in the Canadian oil & natural gas sector with total enterprise value of approximately $850.9 million. 

March 2021

During the month of March 2021, 33 of the 46 TSX-listed E&P companies experienced an increase in their share price. The increase of those that rose ranged from 0.21% to 120%, with an average of 16.13%.

Most of the companies that declined in March 2021 were natural gas-weighted entities.

The three biggest movers to the upside during March were Journey Energy Inc., Cardinal Energy Ltd. and Petrus Resources Ltd., increasing 120%, 72.37% and 36.67% respectively.

Journey skyrocketed from $0.37/share the day before the announcement of its 2020 and Q4 2020 Financial Statements, reaching a high of $1.40/share three days later.

In March 2021, there were eight E&P deals (by five companies) announced  with total enterprise value of ~ $182.7 million.

February 2021 (Commencement of the Reports & Launch of Earth Horse)

During the month of February 2021, all 46 TSX-listed E&P companies with operations focused mainly in Canada experienced an increase in their share price. The average increase was 42.4% while the median was 36.2%; the increase ranged from 2.05% to 120%. The increase in share prices was on the backdrop of improved investor confidence in the sector as commodity prices rose in the month.

In February 2021, there were 15 E&P deals announced in the Canadian oil & natural gas sector with total enterprise value of approximately $6.9 billion. The combined production changing hands during the month was nearly 250,000 boe/d (57% liquids).

There were eleven property transactions valued at $1.5 billion, while the four corporate deals totaled approximately $5.4 billion, or 78% of the months total.

There were two Montney and two Duvernay deals announced.

Special Reports

Q4 2020 & Year-End 2020 TSX Listed Junior and Intermediate E&P Company Comparisons