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9 Pages

Western Canada: a return to capital discipline

Western Canada: a return to capital discipline

Report summary

Amongst our dataset of 45 western Canadian producers, capex/boe nearly doubled from Cdn$10/boe in 2009 to Cdn$19/boe in 2012. Cash flows diminished during this time frame, eventually dipping into negative territory. We expect cash flows to recover, with capital spending falling 14% and capex/boe improving by 17% from 2012 to 2013.

What's included?

This report includes 1 file(s)

  • Western Canada: a return to capital discipline PDF - 622.68 KB 9 Pages, 1 Tables, 9 Figures


This Upstream Oil and Gas Insight report highlights the key issues surrounding this topic, and draws out the key implications for those involved.

This report helps participants, suppliers and advisors understand trends, risks and issues within the upstream oil and gas industry. It gives you an expert point of view to support informed decision making.

Wood Mackenzie's 500 dedicated analysts are located in the markets they cover. They produce forward-looking analysis at both country and asset level across the globe, backed by our robust proprietary database of trusted research.

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  • Executive summary
  • Markets weaken
    • Differentials widen
    • Capital markets pull back
  • Producers’ answer: capital discipline
    • Cash flow is king
    • Leveraging sunk costs in unconventional plays
      • Sweet spots are located
      • Completion techniques are honed
      • Infrastructure is built
      • Efficiencies are realised
    • Focus on core areas set to continue
  • Affected companies
    • Signature Canadian firms lead the way
    • Notable exceptions
    • Junior players particularly challenged
  • Beyond the near term
  • Appendix
  • Economic Assumptions
    • Liquids price
    • Gas price
    • Exchange rate

In this report there are 10 tables or charts, including:

  • Executive summary
  • Markets weaken
    • Western Canada: a return to capital discipline: Image 1
    • Western Canada: a return to capital discipline: Image 2
  • Producers’ answer: capital discipline
    • Cash flows in western Canada for select companies
    • Spending in western Canada for select companies
    • Cash flows for select companies and plays
    • Spending for select companies and plays
    • Crown land sale activity
    • Western Canadian M&A activity
  • Affected companies
    • Junior players' western Canadian production
  • Beyond the near term
  • Appendix
    • Company coverage
  • Economic Assumptions
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