The trend is certainly worrying long-term and is why I have very little exposure to the sector overall. The companies trade at large scale discounts as to what seams reasonable, and this is likely due to a lack of investor interest in the sector overall.
We tend to focus on highlighting the industry leaders (Tourmaline, Canadian Natural etc) because I do believe those are the ones who are best set up for success in practically any environment.
XEG, which is the main Canadian oil and gas ETF from iShares is seeing some of the lowest demand in its history. The sector certainly had its time during the big oil boom in 2021/2022, but interest is fading and it is looking like it's going back to what it was pre-pandemic.
Focus on high quality industry leaders generating a ton of cash flow, and avoid the obvious value traps that exist among many players due to a lack of investment in the industry.