Canadian Energy Firms to Pay Debt, Shareholders Amid Price Surge

Canadian oil and gas drillers say they are shoring up their balance sheets or boosting payments to shareholders rather than raising output in response to a surge in prices caused by the war in Iran.

Alberta oil sands giant Cenovus Energy Inc. will accelerate the repayment of debt acquired from its acquisition of MEG Energy Corp. last year, Chief Executive Officer Jonathan McKenzie said at the BMO CAPP Energy Symposium in Toronto. Birchcliff Energy Ltd. expects as much as C$80 million ($58 million) of extra cash flow this year from the 20% of its production that’s oil and also will use that money to pay down debt, Chief Executive Officer Christopher Carlsen said.