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There is renewed speculation that deal flow is about to pick up among the largest Canadian oil producers, with refineries and oil-sands assets seen as potentially changing hands.
Crude oil prices have shot up and held around $50 (U.S.) a barrel in recent weeks, bolstering confidence and partially easing disagreements over asset values previously blamed for stalling transactions.
A handful of companies have issued shares to fund increased spending programs or complete acquisitions. The most recent was Tourmaline Oil Corp., which last week picked up Alberta and British Columbia natural gas assets from Royal Dutch Shell PLC for about $1.4-billion (Canadian) in cash and stock.
Analysts and investors are watching for updates on deal making as major energy companies start reporting third-quarter numbers this week.
Suncor Energy Inc. has indicated it would seek opportunistic deals, even after bulking up with successive acquisitions last year. Earlier this year, the company raised $2.9-billion in a share sale.
Several analysts have said it could use proceeds to deepen its stake in its $15.1-billion Fort Hills bitumen mine under construction, where it has faced cost pressures owing to a weakening Canadian dollar.
Suncor's partner in the project, French oil major Total SA, has already sold down its interest, and has said it is seeking to divest from higher-cost projects globally.
CNOOC Ltd.'s under-used Long Lake upgrading plant is another possible option for Suncor, Michael Dunn at GMP FirstEnergy said in a research note. He noted the troubled facility could be overhauled to process third-party bitumen, though it would take time to accomplish.
Separately, Mr. Dunn listed Imperial Oil Ltd. as a potential acquirer in the patch. Potential targets include undeveloped bitumen leases owned by Cenovus Energy Inc., including its Telephone Lake asset.
Cenovus has given no indication it is for sale, but earlier efforts to find a joint-venture partner ended without a deal. Meanwhile, development prospects have been pushed back owing to the oil-price collapse.
"Certainly the company's view on the timing of development of these properties has been pushed out significantly relative to the notional mid-2020s first oil date that was conceptualized a few years back, so monetizing some of these long-dated barrels probably makes more sense today than it did a few years ago," Mr. Dunn said.
Imperial, majority owned by Exxon Mobil Corp., has long been seen as a likely consolidator through the downturn. However, its executives have repeatedly said any acquisitions would have to compete with internal development opportunities.
Reuters reported in August that Exxon is seeking a buyer for its Billings, Mont., refinery, which processes up to 60,000 barrels of oil a day, including some heavy Canadian crude.
Mr. Dunn said Cenovus is seeking a home for expanding bitumen production and could potentially make a joint bid for the facility with Phillips 66.
Also in refining, the analyst said Husky Energy Inc. could possibly bid for Chevron Corp.'s 55,000-barrel-per-day refinery in Burnaby, B.C., which has been on the block since June.