Rubellite Energy Inc T.RBY

Morgan Stanley

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Morgan Stanley analysts believe the U.S. energy sector will continue to outperform with a three-part rationale that also applies to Canadian oil producers,

“A New FCF-Driven Value Proposition. The Covid-driven price collapse in 2020 marked the start of a new era, one defined by pervasive capital discipline, rising free cash flow and an emphasis on growing shareholder returns instead of production. 2) Attractive valuations. E&Ps are trading at a 60-65% discount to the S&P 1500, 1.5x the 10-year average and wider than nearly any time in the past decade. 3) Constructive macro & commodity backdrop. Despite the recent volatility in the oil & gas markets, subdued supply & recovering demand should continue to support prices in 2022.”