Energy insiders buy the November pullback

It was a slippery start to November for crude oil, with futures prices dropping more than US$15 a barrel in the first three days of the month.

Traders bet heavily that a weak showing by the Republicans in the U.S. midterms would encourage the Trump administration to secure an agreement with Iran to reopen the Strait of Hormuz. Unsurprisingly, oil patch stocks fell in sympathy with crude.

The market’s reaction seems a bit premature, given the breakdown of the June Iran-U.S. memorandum of understanding meant to open the strait. Moreover, regional conflict has broadened to include Yemen, where Saudi Arabia finds itself in an air campaign against Ansar Allah, widely known as the Houthis.

Even if diplomacy restarts in full gear today, we expect it would take weeks, if not months, for the two sides to settle on the terms of a new agreement. The memories of the disruption would likely drive countries to diversify their energy supply sources in favour of places such as Canada.

Atlas Salt CEO buys as stock slips

To confirm our assumption that the geopolitical landscape will continue to support Canadian oil patch stocks, we look to the insiders to see if they have been buying the November pullback. As it turns out, they have been doing just that. In fact, we see examples across a range of energy sector companies.

At Whitecap Resources Inc. WCP-T, which is focused primarily on exploration and production in the Western Canada Sedimentary Basin, two insiders spent a little more than $423,000 in total on buying shares in the public market from Nov. 2 to Nov. 4. Notably, these two insiders were chief executive Grant Fagerheim, who bought 15,000 shares at an average price of $18.28, and chief financial officer Thanh Kang, who bought 8,100 shares at an average price of $18.42. As of Wednesday, Whitecap shares were down 15.9 per cent from their 52-week high of $20.79, set on Oct. 23.

In the third quarter, Whitecap produced 390,720 barrels of oil equivalent a day (61 per cent liquids), up 4.3 per cent from the same quarter in 2025. Funds flow was $1.17-billion, up 30.8 per cent from the comparable period last year. On a per share basis, funds flow improved 31.5 per cent to 96 cents. Net debt fell to $2.1-billion from $3.3-billion a year earlier.

Whitecap raised its monthly dividend by about 1.5 per cent to 6.17 cents a share. It also increased its 2026 production guidance for the third time this year to 392,000 boe/d. For 2027, the company is budgeting $2.4-billion to $2.6-billion in capital and expects average production of 400,000 to 410,000 boe/d.

Trican Well Service Ltd. TCW-T bills itself as the largest pressure-pumping service company in Canada. The stock hit a three-month high of $7.68 on Oct. 28, after the release of third-quarter results, but it has since retreated 20 per cent. Revenue for the third quarter was $338.3-million, up 12.5 per cent from the same period in 2025, driven by higher customer activity.

The period also included a full quarter’s contribution from its acquisition of Iron Horse Energy Services, a fracturing and coiled-tubing services provider operating in Western Canada. Adjusted EBITDA rose 47.4 per cent to $87.7-million. Profit was 23 cents a share, up from 15 cents. The company maintained its quarterly dividend of 5.5 cents a share. In its third-quarter press release, Trican indicated that it expects customer activity to remain supported by Montney and Duvernay plays and growing demand for Canadian natural gas.

However, it also notes that competition may cause near-term swings in pricing and utilization. Longer term, it is upbeat on industry prospects because of expanding LNG export capacity, improved oil market access, rising condensate demand and more intensive well completions supporting drilling and completion activity in Western Canada.

On Nov. 4, director Tom Coolen bought 100,000 shares in the public market at $6.45. Mr. Coolen is the former chairman and CEO of Iron Horse and joined the Trican board in August 2025 after the acquisition. It is encouraging to see Mr. Coolen adding to his Trican holdings, which now stand at just over 19.1 million shares or 9.5 per cent of all Trican shares outstanding.

Kits Eyecare CEO buys the dip

PrairieSky Royalty Ltd. PSK-T is a pure-play petroleum and natural-gas royalty company with revenue properties across Western Canada, spanning from northeastern British Columbia to western Manitoba. Total royalty production in the third quarter was 26,936 boe/d, up 4.9 per cent from the same period in 2025. Liquids royalty production rose 6 per cent. Funds from operations were $127.9-million, up 42 per cent, or 55 cents a share, up 44.7 per cent. The growth was driven by higher liquids production and strong West Texas Intermediate pricing. Net debt fell 34 per cent in the quarter to $123-million.

The company declared a quarterly dividend of 26.5 cents a share, making for a funds from operations payout ratio of 48 per cent. Third-party operators spudded 230 wells on PrairieSky lands, up from 201 in the third quarter of 2025, at a higher average royalty rate of 6.5 per cent. With elevated leasing and drilling activity, PrairieSky expects royalty production growth to continue into 2027.

PrairieSky stock hit a 52-week high of $38.08 on Oct. 27 after the release of third-quarter results. Two insiders bought shares on Nov. 4 as the stock retreated. CEO Andrew Phillips bought 6,300 shares at $34.80, while director Ian Dundas bought 2,500 shares at $34.71.

Ted Dixon is CEO of INK Research, which provides insider news and knowledge to investors.