Issue link: http://www.e-digitaleditions.com/i/1192317
2 Lawson Lundell LLP Upstream Midstream Downstream Oilfield Services Public Boards 4,842 13 4,435 12 Total 25,900 67 34,077 78 4,600 1 4,633 1 Public Targets - - 23 1 Public Targets 1,203 4 783 4 Public Targets 3,423 31 16,949 43 Private Targets & Assets 11,220 11 6,279 9 Private Targets & Assets 260 1 620 1 Private Targets & Assets 352 6 355 7 Private Targets & Assets 2018 Deal Value (CAD Millions) 2018 Deal Count Three Year Average Deal Value (CAD Millions) Three Year Average Deal Count M&A Summary Deals declined in number (67 in 2018 against 74 in 2017) and in value ($25.9 billion in 2018 against $54.5 billion in 2017), with the same year-over-year bias towards upstream activity, which comprised 65% by number and 31% by value. Whereas 2017 was the year of the exit from Canadian energy assets, 2018 was the year of consolidation within Canada. Firms got their balance sheets and operational plans in better order and, to some degree, returned to Canadian assets. Two of the largest deals in the upstream sector in 2018 involved Canadian-based companies expanding their Canadian production base; Baytex bought Raging River's Viking oil and gas assets in the Dodsland area of Saskatchewan and Vermillion bought Spartan's Southeast Saskatchewan assets. IPC's acquisition of BlackPearl represented the lone deal for public oil sands assets, eliminating one of the few remaining independent oil sands producers in the Canadian market. Midstream activity dominated by deal size. Enbridge internalized the Enbridge Income Fund for $4.6 billion in stock along with selling its western Canadian gas gathering and processing system to Brookfield for $4.3 billion in cash. The Government of Canada paid $4.5 billion for Kinder Morgan Canada's TransMountain system, its unbuilt expansion and related political entanglements. In services, Tervita and Newalta finally combined their environmental services businesses (long after Tervita's failed hostile bid for Newalta in 2001), in an effort to build a better balance sheet and achieve operational efficiencies. Ensign reached for consolidation through its hostile bid for Trinidad, edging out Precision in a similar attempt to benefit from scale.