Stock market values for exploration and production companies in the Canadian oilpatch soared by 24 per cent in 2003 as the industry thrived amidst continuing high oil and natural gas prices, a new survey says.
Gross revenue for the top 100 companies also rose 12 per cent from an average of $763 million to $857 million, according to the 2004 Canadian Energy Survey by PricewaterhouseCoopers LLP.
The junior and intermediate energy companies experienced the biggest growth, with revenue exploding by an average of 94 per cent, compared to just three-per-cent growth in the previous year.
The revenue increase has been driven both by high oil and gas prices as well as production volume increases as drilling levels continued at a record pace, said Cal Jacober, a Calgary-based partner in PwC’s energy-and-utilities practice.
“The commodity price rise has obviously put a lot of these companies in favour, and certainly on the junior side, a lot of them have seen increases all the way to 100 per cent in their stock price,” Jacober said.
As a result, the industry has seen a large increase in startup companies over the past year.
The top 100 exploration and production companies saw their cashflow from operations expand by 34 per cent and earnings per share increase from an average 34 cents per share to 70 cents.
They also spent more money, with capital expenditures growing 20 per cent from an average $212 million to $255 million.
