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Released November 07, 2025 | SUGAR LAND
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Written by Will Ploch, Assistant Editor-in-Chief for Industrial Info Resources (Sugar Land, Texas)
Industrial Info is tracking more than US$2.8 billion worth of active and proposed projects from Strathcona, more than 60% of which is attributed to investments in Canada's oil sands.
Despite tumbling oil prices and its failed bid for MEG, Strathcona is offering a steady, predictable outlook for the coming year. The company's 2026 capital-expenditure (capex) budget remains unchanged at C$1 billion (US$708.5 million), as does its production guidance of 115 million to 125 million BOE/d. Strathcona's drilling programs poised to kick off next spring include a sour natural gas development at its Grovedale Plant near Calgary, and an oil, natural gas and condensate development near Wembley, Alberta.
The Grovedale project involves drilling up to 25 new wells and tying in remaining wells from its 2025 program, which is seeing a similar number drilled and is set to conclude in December. The Wembley project is working on a similar schedule, with at least 10 new wells to be drilled next year and tie-ins for remaining 2025 assets. The Grovedale Plant will process gas from the first project, while a compressor station owned by Keyera Corporation (Calgary) will process gas produced near Wembley.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Project and Plant databases can learn more about these developments--including capacities, investment values and necessary equipment--from profiles of the Grovedale and Wembley plants, and detailed reports on Grovedale's 2025 and 2026 projects, and Wembley's 2025 and 2026 projects.
The Vawn thermal site currently produces an average of 5,000 barrels per day (BBL/d) of crude, with a nominal production of 10,000 BBL/d. Subscribers can learn more from a detailed plant profile.
By the Numbers
In a quarterly earnings-related press release, Strathcona executives were optimistic the Meota project would remain on schedule and on budget: "With the completion of drilling operations early in the fourth quarter, the vast majority of remaining project expenditures are on fixed price, lump-sum contracts, meaningfully de-risking cost overruns. Meota Central is targeting first oil in the fourth quarter of 2026 and is expected to deliver a peak oil rate of approximately 13,000 BBL/d."
During the third quarter, Strathcona recognized a C$616.1 million (US$436.5 million) gain from the May sale of three of its gas-focused assets in the Montney Shale to ARC Resources Limited (Calgary) and Tourmaline Oil Corporation (Calgary), which totaled about C$2.84 billion (US$2.03 billion). The proceeds boosted Strathcona's third-quarter net income to C$573.2 million (US$406.09 million), compared with C$188 million (US$83.6 million) in the same period last year; third-quarter revenues from operations totaled C$905.8 million, a 22.3% drop from third-quarter 2024.
Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for active and proposed projects from Strathcona.
Key Takeaways
About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
Summary
After losing the battle for MEG Energy, Strathcona expects to see its overall production increase next year amid increased activity in Alberta.Capex, Production Outlook for 2026 Holds
Strathcona Resources Limited (Calgary, Alberta) is projecting optimism about its near-term prospects, after it lost a high-profile rivalry with Cenovus Energy (Calgary) over its acquisition of MEG Energy (Calgary). Overall production grew from 109 million to 116 million barrels of oil equivalent per day (BOE/d) during the third quarter, when adjusting for recently sold assets in the Montney Shale, and the company expects further growth in 2026.Industrial Info is tracking more than US$2.8 billion worth of active and proposed projects from Strathcona, more than 60% of which is attributed to investments in Canada's oil sands.
Despite tumbling oil prices and its failed bid for MEG, Strathcona is offering a steady, predictable outlook for the coming year. The company's 2026 capital-expenditure (capex) budget remains unchanged at C$1 billion (US$708.5 million), as does its production guidance of 115 million to 125 million BOE/d. Strathcona's drilling programs poised to kick off next spring include a sour natural gas development at its Grovedale Plant near Calgary, and an oil, natural gas and condensate development near Wembley, Alberta.
The Grovedale project involves drilling up to 25 new wells and tying in remaining wells from its 2025 program, which is seeing a similar number drilled and is set to conclude in December. The Wembley project is working on a similar schedule, with at least 10 new wells to be drilled next year and tie-ins for remaining 2025 assets. The Grovedale Plant will process gas from the first project, while a compressor station owned by Keyera Corporation (Calgary) will process gas produced near Wembley.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Project and Plant databases can learn more about these developments--including capacities, investment values and necessary equipment--from profiles of the Grovedale and Wembley plants, and detailed reports on Grovedale's 2025 and 2026 projects, and Wembley's 2025 and 2026 projects.
Key Acquisition Cushions Rough Landing
Strathcona did not walk away from Cenovus' takeover of MEG empty-handed. In exchange for voting its shares in favor of Cenovus' bid for MEG, Strathcona will acquire Cenovus' Vawn Crude Oil Production & Processing Plant near Lloydminster, Alberta, along with some undeveloped land in Saskatchewan and Alberta, for C$75 million (US$53.14 million). The Cenovus-MEG deal and Strathcona's Vawn acquisition are expected to close toward the end of the year.The Vawn thermal site currently produces an average of 5,000 barrels per day (BBL/d) of crude, with a nominal production of 10,000 BBL/d. Subscribers can learn more from a detailed plant profile.
By the Numbers
- Strathcona's 2026 capex budget remains unchanged at C$1 billion
- The company's production guidance is holding steady at between 115 million and 125 million BOE/d
- Strathcona to acquire Cenovus' Vawn oil-processing plant, with some undeveloped land, for C$75 million
In a quarterly earnings-related press release, Strathcona executives were optimistic the Meota project would remain on schedule and on budget: "With the completion of drilling operations early in the fourth quarter, the vast majority of remaining project expenditures are on fixed price, lump-sum contracts, meaningfully de-risking cost overruns. Meota Central is targeting first oil in the fourth quarter of 2026 and is expected to deliver a peak oil rate of approximately 13,000 BBL/d."
During the third quarter, Strathcona recognized a C$616.1 million (US$436.5 million) gain from the May sale of three of its gas-focused assets in the Montney Shale to ARC Resources Limited (Calgary) and Tourmaline Oil Corporation (Calgary), which totaled about C$2.84 billion (US$2.03 billion). The proceeds boosted Strathcona's third-quarter net income to C$573.2 million (US$406.09 million), compared with C$188 million (US$83.6 million) in the same period last year; third-quarter revenues from operations totaled C$905.8 million, a 22.3% drop from third-quarter 2024.
Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for active and proposed projects from Strathcona.
Key Takeaways
- Despite losing the battle over MEG Energy, Strathcona is upbeat about its near-term prospects.
- The Meota project in Alberta remains on schedule and on budget, according to executives.
- The sale of its Montney assets boosted Strathcona's quarterly income after operational revenues tumbled.
About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
