Vertex Leadership Team and Corporate Outlook
E&P Operation & Maintenance Spending
E&P CAPEX and Maintenance Spending Trends in Canada
1
Oil and Gas Industry Capital Total Expenditures
(C$ in millions)
$45,000
$40,000
$35,000
$30,000
$25,000
$20,000
$15,000
$10,000
$5,000
$250,000
$200,000
$150,000
Oil and Gas Operations Total Expenditure
(C$ millions)
$100,000
$50,000
$0
$0
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Operations Total ■ Alberta
■British Columbia
Saskatchewan
■Manitoba
Opportunity For Vertex
Industry Details 1,2
Operating expenditures by upstream and
midstream companies are a continued requirement
to support production and processing volumes.
Oil & Gas industry capital spending is expected to
increase in a recovering and less volatile commodity
environment.
Increased M&A activity is expected to result in
increased upstream activity overall as active firms
have acquired assets from inactive owners
restarting exploration and production.
Alberta has committed $1.4 billion in innovation
funding for clean technologies and energy efficiency
initiatives to reduce emissions and eliminate coal
emissions by 2030. They plan to spend $70 million
to cut oil sands emissions and this will require
monitoring.
•
•
Inactive assets, turned active require significant spend on maintenance and operating activities to restart exploration and
production. Continual maintenance is required to ensure optimal production capabilities. This presents a more stable and
consistent stream of revenue for Vertex as the company continues to pursue maintenance, turnaround and industrial
cleaning opportunities.
Due to oil production cuts in Alberta, it is likely that firms will undertake additional maintenance activities as production
units are forced to operate at reduced capacities. This presents additional maintenance project opportunities for Vertex in
2019.
Extensive environmental monitoring, which Vertex provides clients, will be required to ensure emission standards are met
due to new regulations being adopted and implemented by the Alberta government.
1.
Source: Analyst consensus, Capital IQ and Raymond James
12
2.
https://keepcanadaworking.ca/facts
V=
VERTEXView entire presentation