AltaGas Ltd T.ALA

RBC Global Energy Fund

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RBC Capital Markets analyst Greg Pardy removed Obsidian Energy Ltd. (from the firm’s “Global Energy Best Ideas List” on Tuesday, citing “lower free cash flow sustainability in light of its growth plans and commodity price weakness.”

Spain’s Grenergy Renovables SA was added to the list, which is analysts’ “highest conviction names across the global energy sector at the time of their addition into the list” with the objective of highlighting stocks that are expected to outperform the iShares Global Energy ETF (IXC-A) and a hybrid benchmark with a weighting towards the iShares Global Utilities ETF (JXI-A).

“In September, the RBC Global Energy Best Ideas List was down 3.6 per cent compared to the iShares S&P Global Energy Sector ETF (IXC) which was down 3.5 per cent and a hybrid benchmark (75-per-cent IXC, 25-per-cent JXI – iShares Global Utilities ETF) that was down 1.3 per cent on a sequential basis,” said Mr. Pardy. “Since its inception in February 2013, the RBC Global Energy Best Ideas List is up 172.8 per cent compared to the S&P Global Energy Sector ETF up 35.6 per cent.”

Mr. Pardy has an “outperform” recommendation and $13 target for Obsidian shares. The average on the Street is $14.

TSX-listed stocks currently on the list are:

• AltaGas Ltd. (ALA-T) with an “outperform” rating and $37 target. Average: $37.88.
• ARC Resources Ltd. (ARX-T) with an “outperform” rating and $28 target. Average: $30.41.
• MEG Energy Corp. (MEG-T) with an “outperform” rating and $35 target. Average: $33.61.
• Northland Power Inc. (NPI-T) with an “outperform” rating and $28 target. Average: $29.83.
• Pason Systems Inc. (PSI-T) with an “outperform” rating and $19 target. Average: $19.80.
• Pembina Pipeline Corp. (PPL-T) with an “outperform” rating and $60 target. Average: $58.15.
• Suncor Energy Inc. (SU-T) with an “outperform” rating and $64 target. Average: $60.12.
• Superior Plus Corp. (SPB-T) with an “outperform” rating and $11 target. Average: $10.27.
• Topaz Energy Corp. (TPZ-T) with an “outperform” rating and $28 target. Average: $29.69.
• Tourmaline Oil Corp. (TOU-T) with an “outperform” rating and $78 target. Average: $77.25.