Oil and Gas Liability Ratings Between Provinces and Between Public and Private Companies

Over the last few posts that we have done, we have been using public data from XI Technologies AssetBook to look at different aspects of the oil and gas business in the Western Canadian Sedimentary Basin (WCSB).

In todays post, we are looking at the LLR/LMR ratings for British Columbia, Alberta and Saskatchewan and also the impact of being a publicly listed company versus a private company.

First we will look at the overall LLR/LMR ratings for each province. They are as follows:

  • British Columbia – 5.6 and this encompasses 114 companies
  • Alberta – 1.31 and this encompasses 1,443 companies
  • Saskatchewan – 1.83 and this encompasses 250 companies

There are no numbers for Manitoba as they do not report any LLR or LMR numbers.

Private Companies vs. Public Companies

Here are the numbers as they relate to private companies versus public companies in the 3 provinces.

British Columbia:

  • Public companies – 4.83 which encompasses 48 companies
  • Private companies – 6.2 which encompasses 66 companies

Alberta:

  • Public companies – 1.3 which encompasses 161 companies
  • Private companies – 1.16 which encompasses 1,282 companies

Saskatchewan:

  • Public companies – 2.1 which encompasses 46 companies
  • Private companies – 1.76 which encompasses 204 companies

What you will notice is that the LLR/LMR numbers are significantly higher in British Columbia compared to Alberta and Saskatchewan. What is different is that the private companies LLR/LMR number is higher for British Columbia companies compared to Alberta and Saskatchewan companies.

One last thing to look at is if a company has a deposit on hand or not. Only British Columbia and Saskatchewan report deposits.

In British Columbia there are 49 companies with security deposits on hand and the average LLR is 10.03 compared to the 66 companies that do not have a security deposit and their average LLR is 2.41.

In Saskatchewan, there are 129 companies that have a security deposite on hand and their LLR is 1.25 versus 121 companies without a security deposit with an LLR of 2.44.

As an overall when it comes to the LLR/LMR ratings for companies, this really isn’t any consistency with the numbers between the publicly listed companies and the private companies. The only real consistency is that British Columbia seems to have better numbers than Alberta or Saskatchewan.

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