BMO’s Top Energy Banker Sees Room for Canadian Oil Megadeals (1)

A US-style megadeal is possible in Canada’s oil patch as investors increasingly seek large, low-cost producers, though the pressures that pushed Exxon Mobil Corp. and Chevron Corp. to pursue blockbuster takeovers aren’t as strong north of the border, says Bank of Montreal’s top energy banker.

Investors would likely support mergers between major Canadian oil and gas producers that increased scale and improved cost efficiencies — and Canadian companies are in a position to do such deals, said Brad Wells, head of energy at BMO Capital Markets.

But the need to add drilling inventory that helped drive Exxon into its $60 ...