• About
    • Which Energy Mix is this?
  • Climate News Network Archive
  • Contact
Celebrating our 1,000th edition. The climate news you need
No Result
View All Result
The Energy Mix
  • Canada
  • UK & Europe
  • Fossil Fuels
  • Ending Emissions
  • Community Climate Finance
  • Clean Electricity Grid
  • Cities & Communities
SUBSCRIBE
DONATE
  • Canada
  • UK & Europe
  • Fossil Fuels
  • Ending Emissions
  • Community Climate Finance
  • Clean Electricity Grid
  • Cities & Communities
SUBSCRIBE
DONATE
No Result
View All Result
The Energy Mix
No Result
View All Result
  FEATURED
Ex-Fossil Workers Convert Old Oilfields to Solar Farms After ‘Rapid Upskilling’ in Alberta June 29, 2022
London Becomes Biggest City to Sign Fossil Fuel Non-Proliferation Treaty June 29, 2022
G7 Miss ‘Golden Opportunity’, Walk Back Pledge to Cut International Fossil Finance June 29, 2022
Soaring Fertilizer Prices Could Deliver ‘Silver Lining’ For Emissions, But Farmers Struggle to Limit Use June 26, 2022
BREAKING: UN Nature Summit, the ‘Paris Conference for Biodiversity’, Moves to Montreal in December June 19, 2022
Next
Prev
Home Jurisdictions Canada

Toronto Stock Exchange May Dump Seven Canadian Fossils Over Low Share Prices

September 10, 2019
Reading time: 3 minutes

Department of Energy/Flickr

Department of Energy/Flickr

29
SHARES
 

Plummeting share values may soon drive up to seven small Canadian fossil companies out of the Standard & Poors/Toronto Stock Exchange Composite Index, a key listing that brings businesses to the attention of investors who might consider buying their stocks, according to a list of potential deletions published by analysts at AltaCorp Capital.

The list “includes Kelt Exploration Ltd., Peyto Exploration and Development Corporation, NuVista Energy Ltd., Torc Oil and Gas Ltd., Birchcliff Energy Ltd. and drilling companies Precision Drilling Corporation and Ensign Energy Services Inc., as their depressed market capitalizations have fallen to the point where they no longer meet the threshold required for the 239-member composite index,” the Financial Post reports. “Their deletion would exacerbate the damage already inflicted on the sector because it would preclude major passive funds, that track major indices, from buying the stocks.”

An announcement is expected in the next few days, and would take effect September 30. The Post says the proportion of fossil companies in the index has fallen from 34% in 2008 to 16% today.

“The fact is, right now, there’s such a lack of investor interest in Canadian [fossil] energy equities that the stock valuations have gone soft and we’re going to fall off the index,” said Precision Drilling President and CEO Kevin Neveu. 

“I mean, it’s inevitable based on the numbers,” he added. “When investors can’t see any potential for production growth or enterprise growth, they’ll look for other sectors.”

“All you can really do is get out in front of the investors and tell your story,” Kelt President and CEO David Wilson told the Post. “The problem is the market has just been so beat up through the summer that there just isn’t anybody listening right now to the oil and gas story.”

Peyto Exploration President and CEO Darren Gee said the impending cut represented a marked change from 2002, when his company was brought into the index with output of just 7,800 barrels of oil per day. “Here we just announced Q2 results and we’re over 10 times that size. It’s a bit amazing that we’re so much bigger in terms of the size of the company’s production, cash flow, reserves, everything, and having delivered incredible profitability over the last 17 years, and yet we’re not big enough to be on the composite index anymore,” he told the Post. 

“It’s indicative of the direction the market has taken with respect to oil and gas investing.”

AltaCorp isn’t alone in predicting the deletions, which would lead to higher interest rates on the money the companies try to borrow to keep their operations going. An analyst survey by Bloomberg “also flagged Peyto, NuVista, Torc, Birchcliff, Precision, and Ensign as highly likely to be deleted from the index,” the Post writes.

Canoe Financial senior portfolio manager Rafi Tahmazian said many investment fund managers are treating oil like tobacco stocks and steering clear, even though they’re currently “making gobs of money”. The difference, in Tahmazian’s view, is that “oil and gas are necessity goods,” the Post states.

But Wilson of Kelt Exploration held out the hope of a turnaround. “I think it gets to a point where capitulation sets in. Everybody says, ‘why invest in oil and gas?’” he said. “Then all of a sudden, these companies are trading at such low multiples that it becomes a great investing opportunity and guys jumps back in.”



in Canada, Community Climate Finance, Ending Emissions, Oil & Gas, Tar Sands / Oil Sands

The latest climate news and analysis, direct to your inbox

Subscribe

Related Posts

Keith Hirsche
Jobs & Training

Ex-Fossil Workers Convert Old Oilfields to Solar Farms After ‘Rapid Upskilling’ in Alberta

June 29, 2022
346
London Eye UK England
Cities & Communities

London Becomes Biggest City to Sign Fossil Fuel Non-Proliferation Treaty

June 29, 2022
103
Number 10/flickr
International Agencies & Studies

G7 Miss ‘Golden Opportunity’, Walk Back Pledge to Cut International Fossil Finance

June 29, 2022
116

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms & Conditions and Privacy Policy.

Trending Stories

Keith Hirsche

Ex-Fossil Workers Convert Old Oilfields to Solar Farms After ‘Rapid Upskilling’ in Alberta

June 29, 2022
346
François GOGLINS/wikimedia commons

Corrosion Problem Shutters Half of France’s Nuclear Reactors

June 29, 2022
131
David/flickr

U.S. Supreme Court Expected to Gut Emission Controls as Climate Scientists Petition for Plan B

June 26, 2022
1.2k
Number 10/flickr

G7 Miss ‘Golden Opportunity’, Walk Back Pledge to Cut International Fossil Finance

June 29, 2022
116
London Eye UK England

London Becomes Biggest City to Sign Fossil Fuel Non-Proliferation Treaty

June 29, 2022
103
Danielle Scott/flickr

Advocate Urges Ottawa to Intervene Before Ontario Builds Highway 413

June 29, 2022
87

Recent Posts

AJEL / Pixabay

Windfall Tax on Food, Fossil, Pharma Giants Would Raise $490B to Solve ‘Catastrophic’ Food Crisis: Oxfam

June 29, 2022
48
futureatlas.com/flickr

Ottawa Demands Deeper Fuel Emissions Cuts, Offers Fossils a Double-Dip on Tax Breaks

June 29, 2022
72
Province of B.C./flickr

Comox Joins Municipalities Seeking Ban on New Gas Stations

June 29, 2022
58
/Piqsels

Refocus Agriculture Spending to Cut Emissions, Boost Productivity, OECD Urges Governments

June 29, 2022
25
Jimmy Emerson, DVM/flickr

Public Vigilance Key to Protecting Greenbelts for Climate Resilience, Report Finds

June 29, 2022
29
Miguel V/Wikimedia Commons

Forests Fall Short of Full Carbon Storage Potential, Study Finds

June 29, 2022
46
Next Post
Mightydrake/Wikimedia Commons

Beer: After Spat Over Pro-Fossil T-Shirt, Are Climate Action Messages Now Welcome in Senate Gallery?

The Energy Mix

Copyright 2022 © Smarter Shift Inc. and Energy Mix Productions Inc. All rights reserved.

Navigate Site

  • About
  • Contact
  • Privacy Policy and Copyright
  • Cookie Policy

Follow Us

No Result
View All Result
  • Canada
  • UK & Europe
  • Fossil Fuels
  • Ending Emissions
  • Community Climate Finance
  • Clean Electricity Grid
  • Cities & Communities

Copyright 2022 © Smarter Shift Inc. and Energy Mix Productions Inc. All rights reserved.

Manage Cookie Consent
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behaviour or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
Manage options Manage services Manage vendors Read more about these purposes
View preferences
{title} {title} {title}