MEG Mentioned In Scotia Report Scotiabank on Wednesday named oil, gas and exploration and production companies that are likely to increase dividends the most during the year, as the median return for oil-weighted shares rose 53% in the last six months, with Canadian firms up 57% and US firms up 46%.
Imperial Oil Ltd. (IMO.TO) and Cenovus Energy Inc. (CVE.TO) were included in Scotiabank's list alongside ARC Resources Ltd. (ARX.TO), Diamondback Energy, Inc., Pioneer Natural Resources Co. and Ovintiv Inc. (OVV.TO).
Crescent Point Energy Corp. (CPG.TO), Paramount Resources Ltd. (POU.TO) and Vermilion Energy Inc. (VET.TO) are also part of the list.
Meanwhile, Scotiabank's top oil-weighted company picks include BP plc, Cenovus Energy, Imperial Oil, Shell plc, APA Corp., ARC, Marathon Oil Corp., Spartan Delta Corp. (SDE.TO) and MEG Energy Corp. (MEG.TO).
The estimated median 2023 total shareholder return yield under Scotiabank's $70/bbl WTI scenario is 10%, increasing to 14% in the $110/bbl WTI scenario.
The increased returns are in addition to continued debt repayments and modest growth capex. Scotiabank expects balance sheet improvements to continue but once targets are reached, special/variable dividends may be initiated in 2023.