Canada energy firms buying back debt cheapened by oil rout

Calgary

CANADIAN energy companies with surplus cash are buying back bonds on the cheap to help shore up balance sheets amid the worst oil downturn in decades.

Encana Corp and Repsol SA's Canadian division are each pursuing debt purchases this month, as about 20 per cent of US$108 billion of energy-company bonds in the country trade below 80 US cents on the dollar, according to data compiled by Bloomberg. Precision Drilling Corp and Athabasca Oil Corp have also floated using spare cash for debt reduction, including potential bond deals.