A financial health check-up for Canada's upstream companies

In response to 2020 oil price collapse, we expanded our Financial Health Index to cover 40 Canadian focused upstream companies. The situation appeared dire for many. Initially operators were quick to slash capex, shut in production and cut dividends in order to balance the books at low oil prices. Then attentions turned to restructuring debt and undertaking A&D to strengthen financial positions – but to what result? A year on and we take another look at those operators to see what’s changed. Who’s come out fighting and who is still in trouble? The list has shrunk from 40 companies to 35 as companies have become acquired, bankrupt or privatised. In times of turmoil, size appears to matter. Large Caps have remained at the top of the board, with Montney specialist holding middle ground, and many juniors still struggling. 11 of the modelled 35 companies score below 4.5.