Scotiabank sees Canadian oil producers benefiting after TMX startup

Baytex Energy

03/07/2024 12:18

** Brokerage Scotiabank says with Trans Mountain pipeline
(TMX) now on-stream, the heavy oil differential is set to be
tight for "several years to come" which benefits heavy oil
producers (both oil sands and conventional)
    ** Sees companies like Tamarack Valley  TVE.TO , Obsidian
Energy  OBE.TO , Baytex Energy  BTE.TO , Cenovus Energy  CVE.TO 
 benefiting from heavy oil exposure
    ** Says while Canadian Natural Resources  CNQ.TO  is most
active heavy oil player, it's a relatively small part of its
portfolio
    ** "The growing interest in the Peace River, Clearwater, and
Mannville Stack plays is due to the strong returns that can be
generated" due to shallow reservoirs reducing drilling costs,
WCX differentials improving on TMX starting up, and better well
designs

 (Reporting by Seher Dareen in Bengaluru)
 ((Seher.Dareen@thomsonreuters.com;))