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Canadian Oilfield Stocks Rise as Energy Prices Strengthen, RBC Says

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Canadian oilfield services stocks rose 7% over the past week as oil and natural gas prices climbed, analysts at RBC Capital Markets said in a Tuesday note.

Ensign Energy Services led the group, gaining 11.4%, followed by Pason Systems, up 10.1%, and Precision Drilling (PDS), up 6.5%.

Enerflex (EFXT) rose 3.5%, CES Energy Solutions gained 3.4%, and Calfrac Well Services advanced 1.9%.

RBC said its group of Canadian oilfield services companies has gained 38.8% so far this year, compared with a 50.4% rise in the broader S&P/TSX Capped Energy Index.

Drilling activity in Western Canada remains strong. The region had 221 active rigs last week, down three from the previous week but 25 higher than the same period last year and 28 above the five-year average.

Activity fell in several major oil and gas-producing regions. The number of rigs operating in the Montney formation dropped by four to 37, while activity in southeastern Saskatchewan fell by four to 14. Heavy-oil drilling declined by five rigs to 52. Activity in the Duvernay region was unchanged at 14 rigs.

Precision Drilling was the most active drilling company in the Montney, with 20 rigs, or 54% of the total. Precision Drilling also led activity in the heavy-oil region, with 22 rigs, or 42% of the total.

RBC's analysts expect Canadian oil and gas producers they cover to generate 6.5 billion Canadian dollars ($4.7 billion) in cash before dividends in 2026 and 7.2 billion Canadian dollars in 2027, based on current futures prices. Companies are expected to reinvest roughly two-thirds of that cash into drilling and other development activities.

Energy prices also moved higher. The price of West Texas Intermediate crude for the remainder of 2026 rose 5.5% over the week to about $87 a barrel, while Brent crude climbed 5.1% to $91. US natural gas prices rose 11.4% to $3.37 per million British thermal units.

Price: $93.68, Change: $+1.36, Percent Change: +1.47%

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