‘NO POINT GROWING’
But producers have few options to spend.
no point growing with the Alberta production curtailment in place and
the lack of egress opportunities,” MEG Energy Chief Executive Derek
Evans told Reuters.
The heavy oil producer reported $98 million in free cash flow during the first quarter, and intends to repay debt.
Energy raked in more than $1 billion in surplus cash flow last quarter
and said it could increase stock buybacks if cash flow improves further.
is no sense spending money to generate additional production and drive
further throughput if you can’t produce the oil. The economics of that
are zero,” Suncor CEO Mark Little said on an earnings call.
number of potential buyers for assets up for sale has dwindled, said
Laura Lau, senior portfolio manager with Brompton Group, which owns
shares in Suncor, Canadian Natural Resources and Cenovus Energy Inc .
is not a friendly place to do business. The cost of capital has gone up
and that is referenced in valuations,” Lau said. “They are competing
against the U.S., and it’s the most business-friendly jurisdiction in