Article content

CALGARY — Some of the country’s largest natural gas producers and drilling companies could soon be booted out of the main Toronto Stock Exchange index amid a share price rout, according to analysts.

After a bruising summer in which their stock prices have fallen to historic lows, as many as seven oil and gas companies are in danger of being removed from the S&P/TSX Composite Index.

We apologize, but this video has failed to load.

tap here to see other videos from our team. Try refreshing your browser, or Battered oil and gas companies brace for another setback — exclusion from Canada’s main stock index Back to video

AltaCorp Capital published a list of potential deletions from the composite index that includes Kelt Exploration Ltd., Peyto Exploration and Development Corp., NuVista Energy Ltd., Torc Oil and Gas Ltd., Birchcliff Energy Ltd. and drilling companies Precision Drilling Corp. and Ensign Energy Services Inc., as their depressed market capitalizations have fallen to the point where they no longer meet the threshold required for the 239-member composite index managed by index provider S&P Global Inc.

The problem is the market has just been so beat up through the summer that there just isn’t anybody listening right now to the oil and gas story Kelt CEO David Wilson

Their deletion would exacerbate the damage already inflicted on the sector because it would preclude major passive funds, that track major indices, from buying the stocks.

“All you can really do is get out in front of the investors and tell your story,” said Kelt president and CEO David Wilson last week. “The problem is the market has just been so beat up through the summer that there just isn’t anybody listening right now to the oil and gas story.”