The Globe and Mail reports in its Tuesday, Oct. 6, edition that o n Monday, shortly after news that Cenovus Energy was buying Athabasca Oil acquisition broke, Scotia Capital analysts Chris MacCulloch and Kevin Fisk published a report highlighting promising oil and gas plays that are likely to be the next takeover targets in a consolidating sector.
The Globe's Andrew Willis writes that the Scotiabank analysts say Athabasca shareholders are getting full value for their shares. They say a "competing offer is unlikely to emerge."
The analysts note that with Athabasca gone, promising small to mid-sized oil companies are still available to domestic investors.
The analysts highlight Strathcona Resources, Tamarack Valley Energy, International Petroleum and Baytex Energy "as solid options for investors looking for high-growth oil-weighted names."
Cenovus and peers such as Canadian Natural Resources, Imperial Oil, Suncor Energy and Shell -- which recently spent $16.4-billion (U.S.) on natural gas producer ARC Resources -- can be counted on to boost their reserves by continuing to snap up mid-sized companies.
Senior oil companies also have the cash to fund acquisitions.
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