RBC Capital Markets Details Q4 2023 Earnings Preview For Canadian Exploration And Production Companies
10:21 AM EST, 01/22/2024 (MT Newswires) -- RBC Capital Markets outlined Monday its outlook for Canadian exploration and production companies heading into the fourth-quarter 2023 reporting season.
RBC said a cut for Birchcliff Energy Ltd. (BIR.TO) was largely priced in by the market and represents the prudent choice in context of a well-supplied WCSB natural gas market.
RBC also reduced its estimates for Parex Resources Inc. (PXT.TO) as the company's updated 2024 guidance was weaker than expected, driving a 16% correction. RBC noted that management continues to emphasize exploration catalysts in 2024.
For Tamarack Valley Energy Ltd. (TVE.TO), RBC said the company is now poised to return up to 25% of excess funds flow to shareholders, primarily through its renewed share buyback program.
RBC noted Tourmaline Oil Corp. (TOU.TO)'s operational update that included the achievement of 2023 exit volumes, the addition of two additional LNG agreements, and the commencement of the sale for the recently acquired Duvernay assets.
RBC said the reporting season kicks off on Feb. 8 with ARC Resources Ltd. (ARX.TO) reporting after market close.
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