TPZ, a Canaccord top pick$31 target price
"Across our coverage universe, we continue to highlight WCP and TPZ as top ideas alongside SGY as our smid-cap oil-weighted pick. In our view, WCP offers a compelling ~7% dividend while we project mid-single-digit growth (~5% CAGR) through the end of the decade as it develops its Montney and Duvernay assets. This is supported through its oil-weighted conventional assets which boast a base decline rate of ~20%.
TPZ provides a defensive vehicle for investors to maintain or acquire exposure to WCSB growth, particularly through its royalty and infrastructure ownership in the NEBC Montney and Clearwater. The company was a top performer in 2024, up 44% on the year compared to the benchmark XEG at 10%, and we believe there to be potential for momentum to continue in 2025 as we project its royalty production base to grow >10% y/y and M&A activity increases (opening the door for TPZ to add to its asset portfolio).