Canadian energy cos: CIBC expects a mixed bag of quarterly results

Latin Explore

15/10/2019 10:59

** Brokerage CIBC changes ratings on several Canadian energy
companies, says the upcoming earnings seasons will be bit of a
mixed bag for the sector
    ** Expects "varying degrees of beats" from MEG Energy Corp
 MEG.TO , Cenovus Energy Inc  CVE.TO , Canadian Natural
Resources  CNQ.TO , ARC Resources  ARX.TO , Freehold Royalties
Ltd  FRU.TO , Leucrotta Exploration Inc  LXE.V  and Western
Energy Services Corp  WRG.TO 
    ** Estimates the following to miss estimates: Painted Pony
Energy  PONY.TO , Trican Well Service  TCW.TO , Secure Energy
Services  SES.TO , Pengrowth Energy Corp  PGF.TO , Yangarra
Resources  YGR.TO  
    ** Expects Alberta's crude by rail contract sale to be
announced before month-end; says Canadian Natural is the most
likely acquirer, with Suncor  SU.TO  potentially picking up some
capacity to provide longer-term takeaway options
    ** Upgrades Imperial Oil  IMO.TO  and Black Diamond Group
 BDI.TO  to "neutral" from "underperformer", says both cos look
attractive
    ** Says the biggest question is not whether the
rail-above-curtailment program goes ahead, but rather how base
lines will be set for incremental production volumes after
Alberta's government has been in talks with producers to ease
curtailments 
    ** Says pairing Canadian heavies against some of the
wobblier U.S. shales looks increasingly interesting, adding that
oilfield services sector continues to witness pain
    ** Investors needs to be cognizant that headwinds will
continue for the near term in the oilfield services sector -
CIBC
    ** Cuts PT on several companies including Whitecap Resources
Inc  WCP.TO , Husky Energy Inc  HSE.TO , Bonterra Energy
Corp BNE.TO , Baytex Energy Corp  BTE.TO  

 (Reporting by Arundhati Sarkar in Bengaluru)
 ((Arundhati.Sarkar@thomsonreuters.com))