"Zawalsky worked on three major energy transactions last year: the bidding war for MEG Energy Inc. in which Cenovus Energy Inc. emerged victorious; Whitecap Resources Inc.'s $15-billion combination with Veren Inc., and Ovintiv Inc.'s $3.8-billion acquisition of NuVista Energy Ltd. Burnet, Duckworth and Palmer as a whole was involved in eight of the 10 biggest energy producer transactions last year."
""M&A is a way that you can grow when you don't want to invest in drilling, when you're not going to get the kind of returns you're expecting," he said. "Until the fundamentals change, we'll likely see more of the same.""
""I don't know if we'll see the values that we saw in 2025, which were dominated by a number of large deals over in the billions," he said. "I think you'll still see quite a bit of activity, just at a smaller scale.""
Advisers expect consolidation among Canadian oil producers to continue as companies pursue mergers and acquisitions to grow without investing in new drilling amid a lacklustre $60 US per barrel oil price. Shareholders are pushing for improved returns through dividends and buybacks while uncertainty about accessing lucrative global markets weighs on producers. Major domestic transactions dominated last year, with examples including Cenovus's win for MEG Energy, Whitecap's $15‑billion combination with Veren, and Ovintiv's acquisition of NuVista. Deal advisers and bankers predict continued activity at a smaller scale and describe the market as a buyer's market for accretive additions.
Read at www.cbc.ca
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