Feb. 21 (Bloomberg) -- Trican Well Service Ltd. rose 4.8 percent, leading Canadian companies that provide hydraulic fracturing services higher on signals that cuts to natural-gas drilling will be offset by increased oil exploration.
Trican rose to C$16.97 today on the Toronto Stock Exchange. Earlier it touched $17.25, the biggest percentage gain since Oct. 12. Canyon Services Group Inc. advanced 5.4 percent, its biggest gain in nine weeks, and Calfrac Well Services Ltd. gained 4.8 percent. All three companies are based in Calgary.
Cuts to gas-drilling budgets announced last week were offset as companies shifted spending to oil and natural-gas liquids, Brian Purdy, an analyst with Global Hunter Securities, said in a telephone interview from Calgary.
Encana Corp., Canada’s biggest gas producer, said Feb. 17 it would spend $1.5 billion, or 55 percent of its budget, on liquids exploration.
“You have pretty good visibility for the rest of the year now that you’re not going to see any major drops,” Purdy, who rates Trican “accumulate,” said. “The increases that we’ve seen from the oil-oriented companies are offsetting the declines that we’ve seen from the gas-oriented producers.”
Canyon rose 63 cents to C$12.39 in Toronto and Calfrac gained C$1.24 to C$27.21.
--Editors: Jacqueline Thorpe, David Scanlan
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