The Canadian Oil and Gas Industry
The oil and gas industry in Canada, as in other regions, is generally divided into three main segments: upstream, midstream, and downstream. Upstream companies engage in the exploration and production (E&P) of crude oil and natural gas. This entails searching for oil below the ground and drilling wells in order to access those reserves.
In some cases, such as in the Canadian oil sands, companies either mine for crude bitumen, a dense, viscous form of crude oil, or use in-situ recovery processes that inject steam and chemicals deep beneath the ground to separate the bitumen from the sand and pump it to the surface. Both methods are relatively expensive compared to traditional well-extraction methods, making the break-even price of oil for oil-sand producers much higher than for more traditional producers.
Midstream companies are engaged in the storage and transportation of oil and gas, while downstream companies refine and sell finished petroleum products.
Here are the 10 biggest Canadian oil and gas companies as measured by trailing 12-months (TTM) revenue. This list is limited to companies that are publicly traded in the U.S. or Canada, either directly or through ADRs. All figures are as of December 21, 2022, courtesy of YCharts.
Key Takeaways
- Canada’s oil and gas industry has upstream, midstream, and downstream segments.
- Upstream companies explore for and produce crude oil and natural gas.
- Midstream companies store and transport oil and gas.
- Downstream companies refine and sell petroleum products.
- Cenovus Energy, Suncor Energy, and Imperial Oil are the top three Canadian oil and gas companies, by TTM revenue.
- Revenue (TTM): CA$71.37 billion
- Net Income (TTM): CA$5.26 billion
- Market Cap: CA$47.95 billion
- 1-Year Trailing Total Return: 75.82%
- Exchange: Toronto Stock Exchange
Cenovus Energy was established in 2009. The company’s headquarters is located in Calgary, Canada. Cenovus is an integrated oil and natural gas company engaged in the development, production, and marketing of crude oil, natural gas liquids, and natural gas in Canada, the U.S. and the Asia Pacific region. It also refines crude oil and transports and sells refined petroleum and chemical products.
- Revenue (TTM): CA$57.72 billion
- Net Income (TTM): CA$7.89 billion
- Market Cap: CA$56.29 billion
- 1-Year Trailing Total Return: 44.06%
- Exchange: Toronto Stock Exchange
Suncor Energy Inc. was established in 1917 and is headquartered in Calgary, Canada. It is an integrated energy company focused on developing petroleum resource basins in Canada’s Athabasca oil sands. The company is engaged in the exploration, acquisition, development, production, refining, transportation, and marketing of crude oil.
- Revenue (TTM): CA$55.17 billion
- Net Income (TTM): CA$6.42 billion
- Market Cap: CA$38.67 billion
- 1-Year Trailing Total Return: 53.48%
- Exchange: Toronto Stock Exchange
Imperial Oil was incorporated in 1880 and is headquartered in Calgary, Canada. It is an integrated company engaged in the exploration and of crude oil and natural gas. It’s also involved in the production, refining, transportation, and sale of crude oil and natural gas products. Its distribution system moves the petroleum products to market by tanker, truck, rail, and pipeline.
In addition, the company manufactures and markets various petrochemicals. Imperial Oil is a subsidiary of Exxon Mobil.
- Revenue (TTM): CA$52.41 billion
- Net Income (TTM): CA$5.92 billion
- Market Cap: CA$106.16 billion
- 1-Year Trailing Total Return: 16.87%
- Exchange: Toronto Stock Exchange
Enbridge Inc. was founded in 1949. It’s headquartered in Calgary, Canada. Enbridge is an energy infrastructure company that provides energy transportation, distribution, and related services. The company operates a network of crude oil, liquids, and natural gas pipelines, as well as regulated natural gas distribution utilities. Enbridge also invests in renewable energy assets and transmission facilities.
- Revenue (TTM): CA$48.71 billion
- Net Income (TTM): CA$11.95 billion
- Market Cap: CA$81.19 billion
- 1-Year Trailing Total Return: 56.19%
- Exchange: Toronto Stock Exchange
Canadian Natural Resources was incorporated in 1973 and has its headquarters in Calgary, Canada. It is an oil and gas exploration and production company. It produces synthetic crude oil, light and medium crude oil, bitumen, primary heavy crude oil, and Pelican Lake heavy crude oil. It also markets and sells its crude oil, natural gas, and natural gas liquids.
Canada is the fourth largest oil producing country in the world, as ranked by barrels per day. Its 2021 figure was 5,558,000 bpd.
- Revenue (TTM): CA$29.54 billion
- Net Income (TTM): CA$333 million
- Market Cap: CA$44.45 billion
- 1-Year Trailing Total Return: -12.40%
- Exchange: Toronto Stock Exchange
Parkland Corporation, formerly known as Parkland Fuel Corp., was established in 1977 and has its headquarters in Calgary, Canada. It is an energy supplier engaged in the marketing and distribution of a variety of petroleum products including gasoline, diesel, propane, lubricants, heating oil, and more.
Parkland supplies and supports a network of retail gas stations, and offers its products to a range of commercial, industrial, and residential customers. Its Supply segment manufactures transportation fuels. It also transports, stores, and sells fuels, crude oil, and liquid petroleum gases. In addition, the Supply segment manufactures and sells aviation fuel to airlines.
- Revenue (TTM): CA$14.52 billion
- Net Income (TTM): CA$3.32 billion
- Market Cap: CA$54.05 billion
- 1-Year Trailing Total Return: -2.94%
- Exchange: Toronto Stock Exchange
TC Energy Corp was incorporated in 1951 and is headquartered in Calgary Canada. It is an energy infrastructure company that builds and operates a network of natural gas pipelines, which transport natural gas from supply basins to local distribution companies, power generation plants, industrial facilities, and other customers. The company also owns regulated natural gas storage facilities and power generation facilities.
TC Energy purchased energy services and equipment company Pioneer Pipeline in 2020 for US$255 million.
- Revenue (TTM): CA$11.47 billion
- Net Income (TTM): CA$2.81 billion
- Market Cap: CA$24.85 billion
- 1-Year Trailing Total Return: 25.87%
- Exchange: Toronto Stock Exchange
Pembina Pipeline Corporation was incorporated in 1954 and is headquartered in Calgary, Canada. It provides transportation and midstream services for the energy industry.
The company operates conventional and oil-sands pipelines, stores oil, and gathers and processes natural gas. It provides infrastructure for natural gas, condensate, and natural gas liquids (NGLs), cavern storage, as well as related pipeline and rail terminaling facilities.
- Revenue (TTM): CA$10.66 billion
- Net Income (TTM): CA$203.27 million
- Market Cap: CA$3.37 billion
- 1-Year Trailing Total Return: 11.71%
- Exchange: Toronto Stock Exchange
Gibson Energy was established in 1950 and is headquartered in Calgary, Canada. It is an integrated service provider to the oil and gas industry. The company engages in the transportation, storage, blending, processing, marketing, and distribution of crude oil, condensate, natural gas liquids, water, oilfield waste, and refined products. The company owns a network of terminals, pipelines, and storage tanks.
- Revenue (TTM): CA$9.32 billion
- Net Income (TTM): CA$2.24 billion
- Market Cap: CA$11.32 billion
- 1-Year Trailing Total Return: 67.65%
- Exchange: Toronto Stock Exchange
Established in 1996, ARC Resources Ltd. is headquartered in Calgary, Canada. It operates in Alberta and northeast British Columbia. The company explores, develops, manufactures, and transports crude oil, natural gas, and natural gas liquids. ARC targets residential, commercial, and industrial energy usage. It prides itself on low-cost, low-emissions energy.
Which Canadian Oil & Gas Company Is the Biggest by Revenue?
Cenovus Energy is the largest, with $71.37 billion (in Canadian dollars).
What Does It Mean to Be an Upstream Oil and Gas Company?
Upstream refers to a part of the industry supply chain. Upstream companies are active early in the chain. They explore, extract, and produce oil and gas.
What Are Downstream Oil and Gas Companies?
These companies focus not only on refining crude oil and natural gas into energy products that can be used by consumers and businesses. They also manage the marketing and distribution of those products.
The Bottom Line
Canada is the fourth largest oil producing country in the world, as measured by barrels produced in a day. Canadian oil and gas companies participate in the three main stages of the industry supply chain (upstream, midstream, and downstream). Some integrate more than one stage in their business. Upstream companies explore for and extract crude oil and natural gas. Midstream companies store and move it. Downstream companies then refine and sell finished petroleum products to customers.
The top 10 oil and gas companies in Canada are Cenovus Energy, Suncor Energy, Imperial Oil, Enbridge, Canadian Natural Resources, Parkland Corp., TC Energy, Pembina Pipeline Corp., Gibson Energy, and ARC Resources.
Source: https://www.investopedia.com/investing/canadian-oil-companies/?utm_campaign=quote-yahoo&utm_source=yahoo&utm_medium=referral&yptr=yahoo