Adapt or die. That could very well be the mantra of Canada’s energy sector right now.
The ground has been shifting for almost five years, but with this year’s short-lived Saudi-Russia price war and the devastating demand destruction caused by COVID-19, an entirely different landscape is starting to take shape.
“Investment bankers are busy, lawyers are busy,” ARC Financial Corp. President Brian Boulanger told BNN Bloomberg. “Generally, if your company looks the same as it does today six to twelve months from now, you’ve probably failed.”
Boulanger has more than two decades of experience with Calgary-based ARC, Canada’s largest energy-focused private equity manager. He began as an investment analyst with the company in 1997, quickly moved up to become president, a role in which he is responsible for all of its investment activities as well as identifying and developing new opportunities. He says many energy companies are now realizing they need to move quickly to strengthen their business model in order to survive in today’s new, more difficult reality.
“You’ve got to do something. Just sitting around waiting for recovery is not going to do it. You’ve got to try to get bigger, reduce costs and build resiliency. Hope is not a strategy, as they say.”
Continue reading at: https://www.bnnbloomberg.ca/hope-is-not-a-strategy-m-a-heats-up-as-new-era-rattles-oil-patch-1.1456913
