In this article, we will look into the 12 biggest Canadian oil and natural gas companies. If you want to skip our detailed analysis, you can go directly to the 5 Biggest Canadian Oil and Natural Gas Companies.
Canadian Oil and Natural Gas Market
Canada is a major global hub of oil and natural gas production. According to the Canadian Association of Petroleum Producers (CAPP), it is the 4th largest oil producer and 6th largest natural gas producer globally. The oil and natural gas market accounts for a significant contribution to the country’s GDP and provides thousands of jobs every year. The Canadian oil and natural gas market is operational in 12 provinces and territories. Alberta is the largest producer of oil and natural gas in the country. It accounts for a staggering 80% share of total oil production. The province has vast reserves concentrated in the northern oil sands, contributing substantially to its economy. In the fiscal year 2021-2022, the market accounted for a 22% share of the provincial government revenue. In 2019, conventional oil production reached 437,000 barrels per day, while the oil sands held 160 billion barrels of reserves. Natural gas is also present in abundance in Alberta with 213 trillion cubic feet in initially established reserves. In 2021, natural gas production reached 10.1 billion cubic feet per day, with the market creating more than 10,000 jobs.
While Alberta emerges as the largest producer in the country, British Columbia is the second-largest natural gas producer in Canada. The abundant reserves of Monetary natural gas basins and Horn River position natural gas as a key player in the clean energy plans of the province. Oil reserves in the northeastern region of the province contributed $632 million in royalties and sales in the fiscal year 2021-2022. The market there also invests significantly in the exploration and development of oil and gas. In 2020, the total exploration and development spending was $2.04 billion. Natural gas production was 5.75 billion cubic feet daily in 2021. The total estimated natural gas resources in the province sits at a staggering 532 trillion cubic feet. Saskatchewan, Manitoba, and Quebec are some of the major producers and abundant reserves centers in the country.
On February 27, Reuters reported that the oil and gas producers in Canada are expected to raise their capital spending to C$40.6 billion in 2024, driven by the expected boost in export capacity due to the expansion of the Trans Mountain oil pipeline. Canada will increase its production to strategically benefit from the new pipeline. Spending is anticipated to remain steady in Alberta while some provinces will have high spending. According to the CAPP, conventional oil and gas capital spending will reach an estimated C$27.3 billion in 2024, while oil sands spending is expected to reach C$13.3 billion in the country.
Key Market Players in Canada’s Energy Sector
Some of the major players operating in the Canadian oil and natural gas market include Enbridge Inc. (NYSE:ENB), Suncor Energy Inc. (NYSE:SU), and AltaGas Ltd. (OTC:ATGFF).
Enbridge Inc. (NYSE:ENB) is a leading oil and natural gas company in Canada. On January 17, the company announced that it had partnered with the British Columbia Ministry of Energy and FortisBC Energy Inc. to study hydrogen as a low-emission energy alternative for families and businesses. The partners will work on their own respective studies and then release an integrated summary, investigating the safe and reliable use of hydrogen. The successful completion of the study can bolster Enbridge Inc.’s (NYSE:ENB) position in British Colombia.
Suncor Energy Inc. (NYSE:SU) is a top integrated energy company. On February 22, the company reported its earnings for the fiscal fourth quarter of 2023. The company reported an EPS of $0.93 and surpassed estimates by $0.14. The company’s revenue for the quarter amounted to $10.47 billion and outperformed estimates by $986.99 million.
Here are some of the comments from Suncor Energy Inc.’s (NYSE:SU) Q4 2023 earnings call:
“In the year, we high graded our asset portfolio to strengthen our competitive advantage and add shareholder value. We did that in part by acquiring the remaining 46% interest in Fort Hills in 2 separate transactions that totaled $2.2 billion, both transactions, we consider to be at attractive prices. The second one, Total Canada also provides large and immediate tax benefits as articulated in our release.
These acquisitions address our long term bitumen supply uncertainty, but in addition, they enabled material regional synergies with the large footprint of our operations. In the year, we also sold non-core UK North Sea upstream assets for $1.1 billion and the solar and wind business for about $700 million of our combined $1.8 billion. In the year, profitability and shareholder returns, we had AFFO of $13.3 billion, the second highest in our history, despite oil prices being the seventh highest over the same period of time. We generated free funds flow of $7.5 billion, second highest, and we executed a $5.7 billion capital program, again within our guidance. We distributed $5 billion to shareholders, $2.8 billion in dividends, $2.2 billion in buybacks, and when combined, this is a 9.1% cash return in the year.”
AltaGas Ltd. (OTC:ATGFF) is a leading explorer and extractor of natural gas and oil. On December 22, 2023, the company announced that it had completed the acquisition of Pipestone assets including a natural gas processing plant, storage facility, and pipelines. This acquisition by AltaGas Ltd. (OTC:ATGFF) will strengthen the company’s position in the Alberta Monteny region. This transaction will also ensure a long-term supply of LPG for export.
Now, let’s have a look at the biggest Canadian oil and natural gas companies.
12 Biggest Canadian Oil and Natural Gas Companies
Methodology
To compile our list of the 12 biggest Canadian oil and natural gas companies, we reviewed multiple sources including our own rankings, market reports, and other similar rankings. We also screened for the companies using Finviz and Yahoo Finance stock screeners. Finally, we ranked the biggest Canadian oil and natural gas companies in ascending order of their market caps, as of March 4.
12 Biggest Canadian Oil and Natural Gas Companies
12. Whitecap Resources Inc. (OTC:SPGYF)
Market Cap as of March 5: $4.26 billion
Whitecap Resources Inc. (OTC:SPGYF) is ranked 12th on our list of the biggest Canadian oil and natural gas companies. The company operates across Alberta, British Columbia, and Saskatchewan. It specializes in crude oil production, logistics, natural gas, NGL processing, transportation, and fractionation. As of March 5, Whitecap Resources Inc. (OTC:SPGYF) has a market cap of $4.26 billion.
11. Crescent Point Energy Corp. (NYSE:CPG)
Market Cap as of March 5: $4.75 billion
Crescent Point Energy Corp. (NYSE:CPG) is a leading oil and gas exploration and production company. The company has a diverse product portfolio including light, medium, and heavy crude oil, tight oil. natural gas, shale gas, and natural gas liquids. Crescent Point Energy Corp. (NYSE:CPG) is one of the biggest oil and natural gas producers in Canada, valued at $4.75 billion as of March 5. It is ranked 11th on our list.
10. Keyera Corp. (OTC:KEYUF)
Market Cap as of March 5: $5.71 billion
Keyera Corp. (OTC:KEYUF) is a major midstream oil and gas company in Canada. It specializes in natural gas liquids, transportation, pipeline operations, gas processing, and midstream operations. It transports natural gas throughout North America. As of March 5, Keyera Corp. (OTC:KEYUF) has a market cap of $5.71 billion. It is ranked 10th on our list.
9. AltaGas Ltd. (OTC:ATGFF)
Market Cap as of March 5: $6.35 billion
AltaGas Ltd. (OTC:ATGFF) is ranked 9th on our list of the biggest Canadian oil and natural gas companies. The company has an extraction processing capacity of nearly 1.5 Bcf/d and a raw field gas processing capacity of 0.7 Bcf/d. AltaGas Ltd. (OTC:ATGFF) is valued at $6.35 billion, as of March 5.
8. Tourmaline Oil Corp. (OTC:TRMLF)
Market Cap as of March 5: $16.11 billion
Ranked 8th on our list, Tourmaline Oil Corp. (OTC:TRMLF) is a major natural gas producer in Canada, specializing in the exploration, extraction, and production of crude oil and natural gas. As of March 5, Tourmaline Oil Corp. (OTC:TRMLF) has a market cap of $16.11 billion.
7. Pembina Pipeline Corporation (NYSE:PBA)
Market Cap as of March 5: $19.29 billion
Pembina Pipeline Corporation (NYSE:PBA) has been leading the Canadian oil and natural gas market for over 65 years. The company specializes in energy transportation and midstream provision. The company owns pipelines transporting hydrocarbon liquids and natural gas products. It also owns gas collection and processing facilities and liquid infrastructure and logistics business. As of March 5, Pembina Pipeline Corporation (NYSE:PBA) has a market cap of $19.29 billion. It is ranked 7th on our list.
6. Cenovus Energy Inc. (NYSE:CVE)
Market Cap as of March 5: $33.42 billion
Cenovus Energy Inc. (NYSE:CVE) is an integrated energy company founded in 2009. The company specializes in oil sands, natural gas, conventional oil and gas, innovative and sustainable energy solutions, and drilling. As of March 5, Cenovus Energy Inc. (NYSE:CVE) is valued at $33.42 billion and is ranked 6th among the biggest Canadian oil and natural gas companies.
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Disclosure: None. 12 Biggest Canadian Oil and Natural Gas Companies is originally published on Insider Monkey.