RBC RBC Capital Markets head of global energy research Greg Pardy reviewed his top picks in the energy sector,
“On average, we are broadly in-line with FactSet consensus on equivalent production and capital spending expectations. On balance, we think the majority of producers will stay the course next year in regards to capital discipline, strengthening balance sheets, pursuing modest organic production growth and displaying an ongoing commitment to shareholder returns—with an emphasis on share buybacks. We continue to favor energy companies with cash flow leverage towards oil-weighted segments. In our eyes, energy producers are well equipped to handle commodity price volatility given their strong balance sheets while maintaining shareholder return optionality. Our favorite senior producer remains Canadian Natural Resources, with Suncor Energy our favorite integrated, and MEG Energy our favorite intermediate producer"