Commodities
Canadian Oilfield Activity Strengthens As WCSB Rig Count Climbs, RBC Says
Canadian oilfield activity strengthened alongside firm oil prices and cash-flow expectations, with the Western Canadian Sedimentary Basin rig count rising to 221, RBC Capital Markets said in a Tuesday note.Ensign Energy led Canadian oilfield services stocks over the week with a 3.2% gain, followed by CES Energy Solutions at 1.7% and Pason Systems at 1.4%, RBC said.Precision Drilling (PDS) fell 0.3%, Trican Well Service declined 0.9%, and Calfrac Well Services dropped 3.8%, marking the weakest performers among Canadian oilfield services stocks.The Canadian oilfield services coverage group gained 41.5% year to date, while the Standard & Poor's/Toronto Stock Exchange Capped Energy Index advanced 53.8% over the same period, RBC said.The Western Canadian Sedimentary Basin added six rigs over the week, putting activity 30 rigs above 2025 levels and 25 above the five-year average.Private operators increased their rig count by three, while large exploration and production companies producing more than 75,000 barrels of oil equivalent per day added four rigs.Montney operators reduced activity by one rig to 36, led by ARC Resources with six rigs, Ovintiv (OVV) with five and Whitecap Resources with four rigs, RBC said.Montney drillers saw Precision Drilling lead with 17 rigs, or 47% of the total, followed by Ensign Energy with nine rigs, or 25%, and Savanna Energy with four, or 11%.Duvernay operators increased activity by one rig to 15, with Paramount Resources and Whitecap Resources each running three rigs and Artis Exploration operating one.Duvernay drillers included Ensign Energy with four rigs, or 27% of the total, while Akita Drilling and Precision Drilling each operated three rigs, representing 20% apiece.Oil Sands operators cut activity by three rigs to 10, with Canadian Natural Resources (CNQ) running three rigs and Cenovus Energy (CVE) and CNOOC operating two each.Oil Sands drillers saw Precision Drilling operate nine rigs, or 90% of the total, while Ensign Energy accounted for the remaining one rig, or 10%.Heavy Oil operators added five rigs to reach 59, with Canadian Natural Resources running nine, Cenovus Energy eight and Spur Petroleum seven rigs.Heavy Oil drillers included Precision Drilling with 26 rigs, or 44% of the total, followed by Ensign Energy with nine, or 15%, and Savanna Energy with seven, or 12%.RBC's Canadian exploration and production analysts forecast $6.7 billion and $7.4 billion in pre-dividend free cash flow for 2026 and 2027, respectively, at futures-strip pricing.Operators should reinvest 65% of cash flow in 2026 and 63% in 2027, compared with a five-year trailing average of 63%, according to RBC.Price: $87.33, Change: $-2.14, Percent Change: -2.39%
$CNQ$CVE$OVV$PDS