Daily roundup of research and analysis from The Globe and Mail’s market strategist Scott Barlow
RBC Capital Markets head of global energy research Greg Pardy published a bit of table pounding with Quality on Sale. Act Now,
“Our 2024 Global Energy, Power & Infrastructure Conference (EPIC) on June 4-5 in New York is timely especially given energy market turbulence following the June 2 OPEC+ Ministerial Meeting. In our eyes, quality energy producers have gone on sale. Corporate consolidation amongst US energy companies (including the $22.5 billion ConocoPhillips-Marathon deal) is ripping. And the new model energy producers have embraced globally fuses financial resilience with shareholder return optionality. Simply put, energy investing is no longer just about crude oil price volatility. Our hit parade of energy stocks is featured in our RBC Global Energy Best Ideas … Helima Croft—Head of Global Commodity Strategy, argues that the planned unwinding of 2.2 million bbl/d of voluntary cuts commencing in October 2024 can be paused/reversed depending on market conditions, and that we do not see this as an abandonment of the active market management principle … From where we sit, Canada’s oil sands landscape—characterized by resource abundance and extensive reserve lives—is the most attractive we have seen in over a decade. The 590,000 bbl/d Trans Mountain Pipeline Expansion is a game changer which affords excess takeaway capacity into 2027 and global market optionality that has yielded tighter WCS-WTI spreads”