Here are some of my favourites, as in investment opportunities :)  Some of the fall in market cap is the result of low natural gas prices (during the second week of January 2012 prices in Alberta reached a 26-month low).  Keep in mind however that natural gas is of decreasing importance to many of these companies including the largest, Cenovus Energy (long term gas production level targeted by Cenovus is 400-500 Mmcf/d half what it produced when it split from Encana back in 2009).  Because of the situation in Libya, Suncor which had led Canadian companies in oil production fell behind Canadian Natural Resources;  2011 fiscal production:  Suncor 546 boe/d (-11.2% vs 615.1 in 2010), CNRL 598.7 boe/d (forecast; -5.3% vs 632.2 in 2010).

CENOVUS ENERGY (TSX:CVE) - 2012 production guidance calls for total production in 2012 to be in the range of 255-271,000 bpd (up 14.8%-26.7% yoy) with 18,000 bpd of new production coming from Christina Lake and 11,000 bpd new from conventional oil and natural gas liquids (natural gas production declines by 11.5% to 575-600 Mmcf/d).  The optimistic figures are based on a capital expenditure rise of 23% ($3.1-$3.3 billion) for the 2012 fiscal year.  All this is based on a company statements made on December 7, 2011. 

Seraphim's advice: With oil prices remaining strong and steady near the $100 mark, tight supplies (situation in Libya, Syria, etc), OPEC sticking to its production cap of 30 M bbls/d (since 2009) but global demand recording steady growth, Cenovus Oil will have no problem expanding its oil sands operations (heavy oil there is typically 4-5X more expensive to produce and so oil must be $50/bbl of higher for it to be economically viable).  Remember too that Cenovus's capex spending will also result in the upgrading of resource resulting in a growth also in 2P reserves - that makes the company more valuable.  What's more, total production is expected to increase to 290,000 bbls/d by 2013 that's 15% more than it averaged in 2011 (includes a drop of 12,500 boe/d in gas production).

NEXEN (TSX:NXY) - Management stabilized in January 2012 with the exit of chief Marvin Romanov.  Romanov led the company for the last 3 years and 9 days during which the price of oil doubled but Nexen's market capitalization got cut in half (currently $9.5 billion, January 20, 2012).  Cash flow is projected to rise 15% in 2012 to between $2.8 and $3.3 billion.  The company recently raised US$676 million with the sale of 40% of its shale gas property in NE British Colombia (exploration assets).  Production for the coming year is estimated to be in the range of 185 and 220,000 boe/d.  Nexen's stock was up 7.8% the day Romanov left.  Nexen averaged between 210,000 and 230,000 bpd in 2011, 204,000 bpd in the second quarter.  Nexen gets about 27% of oil production from Canada however a lot of it key assets are in Alberta's oil sands (majority stake in the $6 billion Long Lake project, the rest of it is already owned by CNOOC (35%) which acquired that interest earlier when it tookover OPTI Canada).  UPDATE: CNOOC offers $15.1B (about $27/share or 61% premium to the closing price) to buy Nexen July 24, 2012.  The offer has been accepted but must pass a thorough 'net benefit to Canada' review process overseen by Canada's industry minister.  To help persuade Canada to allow the deal, CNOOC says it will list on the Toronto Stock Exchange and keep Nexen head office and management in Calgary.

RISK - Yemen did not renew its agreement with Nexen and that will result in a trimming off of 9.5% of the company's 2011 production.  New management is expected to focus on developing assets including the 18-well pad that will be producing by the end of 2012 (gas + ngl production up to 155 million cubic feet per day.  OPPORTUNITY - Nexen is considered a potential takeover target a scenario which would result in an immediate boost in stock price by anywhere from 17% to 57.9%.

ENCANA (TSX:ECA) - Production and revenue remains strong though the company's market value has been slow to respond especially when the high oil price is factored in.  The company's market value was down 40% in the year leading up to January 2012 before moving higher in 2012: year to December up +5.09%.  As a result of lower natural gas prices Encana is planning to lower its output to 3.1 billion cubic feet per day in 2012, down from 3.333 billion in 2011.  2011 gas production was 3,333 MMcf/d +4.68% from 3,184 MMcf/d in 2010; In 2011 highest quarter was 4Q at 3,459 and on the year almost all of the increase in gas was from Canadian division (1,454 vs 1,323, USA division was 1,879 vs 1,861).  Liquids production was 24,000 bpd +1,200 bpd vs 2010 (22,800 bpd).

Encana 2012:  9M2012 gas output 2993 MMcf/d down -298, oil liquids production 29,300 bbls/d down up +5,300 bbls/d.  3Q2012 gas output 2905 Mmcf/d down -460 Mmcf/d, oil liquids production 30,300 bbls/ up +5,900 bbls/d.

TALISMAN Energy Inc. (TSX:TLM)Oct 2012Revenue has dipped a bit (down -12.0% qoq 3Q 2012 and down in each of the last 3 quarters) In 3Q2012 The company reported its largest profit loss in more than eight quarters (down -$1252 mil -> -$731 mil) stemming from asset impairments, lower revenue and DD&A expens as well as currency effects.  It is worth noting that the company reported a net loss only one other quarter over the last six quarters and that was during 4Q2011.  For 9M2012 operating expense per boe net of roylaties was highest in the North Sea ($45.98 up +43.1%) and lowest in North America ($9.10 up +12.6%) and Southeast Asia (13.3 down -1.8%).  Average daily production 9M2012 gross 437,000 (+16th) net 358,000 (+10th).  3Q2012 gross 415,000 (+15th) net 339,000 (+15th). 

Oct 2011:  Revenue was strong in 2011, up 15.5% qoq 3Q 2011, increased quarter to quarter in 4 of the last 5 quarters.  Net income suffered in the last quarter of 2010 and into the first quarter of 2011 but the company has recovered; $1.2 billion in profit 2Q11 + 3Q11 up significantly, in fact that's twice as much profit than the company made during the entire 2010 fiscal year ($648 million).  How does the market respond to all this?  By dropping its market value down so much the company fell off of the FT Global 500 list (world's 500 biggest companies by market capitalization).  July 24, 2012 UPDATE:  Talisman Energy sells 49% of its operations in the UK to Sinopec of China for $1.5 billion.  Prior to the deal Talisman has raised $1.0 billion in investment proceeds so far in 2012.  One of the reasons it's getting out of the UK is British tax laws : last year Talisman was faced with a tax increase.

Suncor Energy (TSX:SU) - In full-year 2011 339,300 bbls/d (62% of total) production came from the oil sands (304,700 bpd +21,700 bpd) + Syncrude (34,600 bpd -600 bpd).  Outside of Alberta, 31% of production came from natural gas (64,000 bpd/206,700 bpd) about the same fraction as in 2010 (32% of 296,900 bpd). The East Coast of Canada accounted for 31.7% of production outside Alberta (Suncor owns 20% of Hibernia and 26.125% of White Rose; Husky Energy also operates at White Rose) amounting to 65,600 boe/d down from 68,600 boe/d in 2010 (though the East Coa's % of total non-Alberta production went up from 23.1% --> 31.7%).

OFF TOPIC: January 20, 2011 Obama rejected a permit for the Keystone Pipeline. In response, Stephen Harper threatened to give more support over to the other pipeline project Northern Gateway Pipelines which will take the oil to British Columbia then overseas to destinations in China. Canada is home to 90% of 2P oil reserves outside of OPEC nations. The irony behind it all is that the decision by Obama makes the US more dependent on oil from unstable sources (Venezuela, Saudi Arabia) while also making the US a less financially secure/more hostile place to do business for traditional allies like Canada. 

Here's what Newt Gingrich has to say about the Keystone Rejection

The Iranians are practicing closing the straits of Hormuz, the Canadian prime minister has already said to the US president, if you don't want to build this pipeline to create 20,000 American jobs and bring oil through the United States to the largest refinery complex in the world, Houston, I want to put it straight west in Canada to Vancouver and ship the oil direct to China so you'll lose the jobs, you'll lose the throughput, you'll lose 30 or 40 years of work in Houston. The president cannot figure out, I'm using milder words here, utterly irrational to say I'm now going to veto a middle class tax cut to protect left wing environmental extremists in San Francisco so that we're going to kill American jobs, weaken American energy, make us more vulnerable to the Iranians and do so in a way that makes no sense to any normal, rational American.