Oil And Gas - Canadian E&P Stock Outlook: Signs Of Tailwind

Agreed, the crude pricing strength is not likely to lead to a proportionate increase in Canadian oil realizations because of the issues discussed above. However, as part of a strategic shift, Canadian oil companies are now looking to pump resources into two of the popular shale plays of the country — Duvernay in central Alberta and Montney – instead of investing in risky and costly oil sands projects.

The gradual uptick in crude prices along with efficient strides adopted by the companies during the slump are now encouraging producers to rev up development. As a result, most Canadian upstream players are off to a strong start in 2018, exceeding their production targets through a combination of a high level of operational execution, lower completion cycle times and impressive cost reductions.

Importantly, this provides investors with an excellent chance to accumulate some quality Canadian E&P names – more so the ones with strong earnings outlook.

Below are three stocks with positive earnings estimate revisions and a bullish Zacks Rank.

Canadian Natural Resources Ltd. (CNQ) is one of the largest independent energy companies in the country engaged in the exploration, development and production of oil and natural gas in Western Canada, the United Kingdom sector of the North Sea and offshore Africa.The stock of this Calgary-based explorer has gained 9.4% over the past year. The Zacks Consensus Estimate for the current-year EPS has been revised 19.3% upward over the last 60 days. Canadian Natural Resources flaunts a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Price and Consensus: CNQ

Baytex Energy Corporation (BTE) is an intermediate explorer and producer with primary focus on the Western Canadian Sedimentary Basin and in the Eagle Ford in the United States.The stock of this Calgary-based explorer has gained 9.7% over the past year. The Zacks Consensus Estimate for the current-year EPS has been revised 56% upward over the last 60 days. Baytex Energy carries a Zacks Rank of 2.

Price and Consensus: BTE

TransGlobe Energy Corporation (TGA) is an oil and gas exploration and production company with operations primarily focused in Canada and Egypt.The stock of this explorer, also based in Calgary, has gained 155.9% over the past year. The Zacks Consensus Estimate for the current-year EPS has been revised significantly upward (from 2 cents to 51 cents) over the last 60 days. TransGlobe Energy also has a Zacks Rank #2.

Price and Consensus: TGA

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