With concerns over pipeline capacity subsiding, Canadian heavy oil producers such as MEG Energy are poised to benefit from the significant narrowing in differentials.
Plus, our take on the prospects for Canadian energy, where insufficient pipeline capacity is limiting access to export markets.
MEG Energy has been ahead of the curve in securing rail, barge, and pipeline access to critical markets.
A propane price spike and enthusiasm for near-term margins have made the market overly optimistic about this pipeline firm.
We have modestly reduced the fair value estimates for our covered oil sands producers; CNRL remains a Best Idea.
This wide-moat firm offers a diversified business model with growth prospects and a reasonable dividend yield.
Increased access to the Gulf Coast results in higher realizations.
Shifting economics and supply dynamics provide growth opportunities.