Barclays gives favourable mention 2015-05-12 06:56 ET - In the News
See In the News (C-COS) Canadian Oil Sands Ltd
The Globe and Mail reports in its Tuesday edition that investors betting on a recovery in the energy sector may want to focus on stocks with the least exposure to Alberta. The Globe's Brenda Bouw writes that investors have already been shunning Canadian oil patch players. The prospect of higher income taxes will affect all oil and gas operators in Alberta. Senior producers with all of their operations in Alberta -- such as Canadian Oil Sands and Athabasca Oil -- will be most exposed to royalty changes. BMO analyst Randy Ollenberger says, "Given refining operations would be largely unaffected by a royalty change, the integrated oils would generally be less exposed than the producers." He says Cenovus Energy and Imperial Oil have extensive refining and crude production operations. Barclays analysts cite a handful of companies they expect to weather the uncertainty, such as Legacy Oil + Gas and ARC Resources, due to their limited exposure to Alberta. Vermilion Energy, Enerplus and Baytex Energy could also outperform some of their industry peers because they have extensive operations outside of Canada, "minimizing their exposure as well," say Barclays analysts.