Scotiabank Scotia analyst reveals his stock picks for ‘the top resource play in North America’
Scotiabank analyst Cameron Bean sees big opportunities in the Montney formation in Alberta and British Columbia,
“We continue to see the Montney as the top resource play in North America. The lean and liquids-rich natural gas parts of the play have a demonstrated track record of delivering top-tier returns, while the oil window continues to show advances through the use of enhanced completion design. We have updated our company-specific Montney type curves and see strong returns from top to bottom … Despite being well known and long-established, we believe the relatively measured pace of development to date across much of the Montney leaves many years of profitable drilling ahead. We expect the Montney to be a key driver of Western Canadian production growth over the next decade and a hotly contested M&A target over the next 12-24 months. Top exposure. In our view, TOU, TPZ, AAV, ARX, CPG, and WCP offer investors the best high-return organic growth potential in the play.”