The 7 Biggest Canadian Natural Gas Companies (CNQ, HSE.TO)

Canada is home to the world's fifth-largest natural gas industry. While private companies of all sizes engage in natural gas production across the Canadian landscape, only a small group of firms deliver average production of more than 300 million cubic feet per day. While some of these firms are integrated oil and gas companies with extensive operations in upstream and downstream industries, others focus on upstream exploration and production.

Natural gas production in Canada, as elsewhere, faced many challenges in the past few years, the most prominent of which has been the volatility of energy prices. Canada was also particularly hurt by competition from cheap U.S. shale oil when production of those sources was at its height. 

In general, all of these public companies had a rough earnings year in 2016 followed by some recovery in 2017 and 2018.

Canadian Natural Resources Limited (NYSE: CNQ) ranks among the largest oil and gas exploration and production companies in the world. In addition to its North American natural gas and crude oil operations, it produces crude oil in the North Sea and in offshore African waters. The company has a market capitalization of about $34.7 billion as of November 2018. 

Husky Energy, Inc. (TSX: HSE.TO) is an integrated oil and gas giant with production operations across Canada, in the United States and in the South China Sea. It operates a half-dozen refineries in North America and owns retail service stations in Canada. The company has a market capitalization of about $13.8 billion in November 2018.

Cenovus Energy, Inc. (NYSE: CVE) is an integrated oil and gas company with large conventional crude oil, oil sands and natural gas operations in Canada and refining operations in the U.S. Cenovus Energy's average daily natural gas production declined in recent years, continuing a trend linked to its decision to focus capital investment on crude oil resources in recent years. The company had a market capitalization of about $10.7 billion as of November 2018.

Encana Corp. (NYSE: ECA) is Canada's top natural gas company by volume. About 59% of its production came from Canadian operations, while the remainder came from operations in the U.S. Encana had a market capitalization of about $8.2 billion as of November 2018.

Tourmaline Oil Corp. (TSX: TOU.TO) operates primarily as a crude oil and natural gas exploration and production firm. The company was established in 2008 and experienced high growth as production activities continue to ramp up. Tourmaline Oil has a market capitalization of $4 billion in November 2018.

ARC Resources Ltd. (TSX: ARX.TO) is a growing oil and gas exploration and production firm with operations across Canada. The company had a market capitalization of about $3.2 billion in November 2018.

Peyto Exploration and Development Corp. (TSX: PEY.TO) operates primarily as a gas exploration and production firm, but it produces some crude oil as well. The company's natural gas production rose to 412 million cubic feet per day in 2014, a gain of more than 16% on the previous year. It had a market capitalization of about $1.4 billion in November 2018.