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Cenovus Energy (CVE) has an average rating of buy and mean price target of CA$48.10, according to analysts polled by FactSet.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://finwires.com/en/contact)
RBC Capital Markets raised its price target on Cenovus Energy (CVE.TO, CVE) to C$51 from C$47.Analyst Greg Pardy maintained an Outperform rating on shares of the Canadian integrated oil and natural gas company following its Q2 results on Wednesday.Cenovus shares rose C$1.77, or 4.5%, to C$40.83 on the Toronto Stock Exchange."Cenovus Energy delivered robust second-quarter results top-to-bottom along with a favorable guidance outlook which points toward higher production and lower unit operating costs this year," Pardy said in a note to clients.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://finwires.com/en/contact)
Canadian oilfield services stocks fell 5% over the past week even as drilling activity in the Western Canadian Sedimentary Basin climbed further above historical levels, RBC Capital Markets analysts said in a note on Tuesday.The WCSB rig count rose by six week over week to 227, up 40 rigs from a year earlier and 35 above the five-year average. The Q3 average of 220 rigs is well ahead of RBC's forecast of 201.Private operators accounted for most of the increase, adding five rigs during the week, while large exploration and production companies producing over 75,000 barrels of oil equivalent per day added two.Montney activity increased by four rigs to 39, led by ARC Resources (ARC) and Ovintiv (OVV) with six rigs each, followed by Tourmaline Oil with five. Precision Drilling (PDS) remained the largest contractor in the play with 21 rigs, or 54% of the total.Heavy oil drilling also rose by four rigs to 68, led by Canadian Natural Resources (CNQ) with 13 rigs and Cenovus Energy (CVE) with 10. Duvernay activity edged up one rig to 18, while oil sands drilling slipped by two rigs to six.Despite stronger drilling activity, Canadian oilfield services stocks under RBC coverage declined 5% during the week.CES Energy Solutions posted the smallest loss, down 1.2%, followed by Calfrac Well Services, down 2.7%, and Pulse Seismic, down 3.7%.Trican Well Service, Precision Drilling (PDS) and Enerflex (EFXT) were the weakest performers, falling 6.5%, 7.4% and 9.8%, respectively.RBC's Canadian oilfield services coverage group has gained 28.7% year to date, compared with a 41.3% gain for the S&P/TSX Capped Energy Index.The bank forecast Canadian exploration and production companies under its coverage will generate pre-dividend free cash flow of $7.2 billion Canadian dollars ($5.12 billion) in 2026 and $7.8 billion in 2027, while reinvesting 64% and 62% of cash flow, respectively.
Cenovus Energy (CVE) reported Q2 earnings on Wednesday, raising its full-year upstream production guidance after stronger-than-expected performance from its oil sands operations helped offset maintenance-related disruptions elsewhere in its portfolio.The Canadian oil producer said it now expects total upstream production of between 970,000 million barrels of oil equivalent per day and 1.01 mmboe/d in 2026, an increase of 25,000 boe/d at the midpoint from its previous forecast.The company also said it remains on track to surpass more than 1 million boe/d of upstream production during July.Total upstream production averaged 970.4 mmboe/d in Q2, compared to 765.9 mmboe/d for the corresponding period a year ago.Output at Cenovus' flagship Christina Lake oil sands project rose to 372.1 million barrels per day in Q2, supported by strong well performance at Narrows Lake and continued progress on redevelopment drilling at Christina Lake North.The company said production at Foster Creek declined to 214.5 million b/d in Q2 after an unplanned operational disruption in late May, while output from the Sunrise project rose to 65.7 million b/d as production ramped up from its first well pad in the East development area.Production from Cenovus' Lloydminster thermal assets increased to 103.1 million b/d, while conventional heavy oil production in the region slipped to 28.4 million b/d.Production from the energy firm's conventional segment fell to 118.2 million boe/d, due to third-party maintenance activities.Offshore production declined to 65.8 million boe/d in Q2, due to planned maintenance in China and Indonesia that reduced Asia Pacific production to 51.2 million boe/d, while turnaround work at the Terra Nova field lowered Atlantic region output to 14.6 million b/d.On the downstream side, total crude throughput averaged 451.5 million b/d in Q2, down from 665.8 million b/d a year ago.Canadian refining throughput declined to 101.7 million b/d, representing a 94% utilization rate, after turnaround work at the Lloydminster Upgrader.The company lowered expected oil sands operating costs to $10.75-$11.75/boe/d, from $11.25-$12.75, while conventional operating cost guidance was reduced to $10.00-$10.50/boe/d from $11.00-$12.00.Cenovus also increased its Canadian refining throughput guidance to 110 million -115 million b/d, while lowering expected Canadian refining operating expenses to $10.50-$11.50/bbl, citing strong year-to-date operating performance.The company updated its commodity price assumptions and cash tax guidance but left its 2026 capital spending forecast unchanged at $5 billion to $5.3 billion.Price: $29.11, Change: $+1.45, Percent Change: +5.22%
Energy stocks were higher premarket Wednesday, with the State Street Energy Select Sector SPDR ETF (XLE) gaining 2.2%.The United States Oil Fund (USO) was up 6.4%, while the United States Natural Gas Fund (UNG) was 0.3% higher.Front-month US West Texas Intermediate crude oil was up 6.7% to $84.56 per barrel at the New York Mercantile Exchange. Global benchmark North Sea Brent crude oil rose 7.1% to $90.05 per barrel, and natural gas futures were 0.5% lower at $2.65 per 1 million British Thermal Units.Eni (E) stock was up more than 6% before market open after the company reported higher Q2 net profit and sales.Cenovus Energy (CVE) gained more than 4% after the company reported higher Q2 earnings.Woodside Energy Group (WDS) rose 3% after the company reported higher Q2 operating revenue.
Cenovus Energy (CVE) reported Q2 earnings Wednesday of CA$1.53 ($1.08) per diluted share, up from $0.455 a year earlier.Three analysts surveyed by FactSet expected $1.64.Revenue for the quarter ended June 30 was $17.4 billion.Analysts expected $16.87 billion.Shares of the company were up 4.3% in recent Wednesday premarket activity.
Norwegian energy engineering firm Aker Solutions Tuesday reported that its order intake for Q2 decreased year over year, but its order backlog grew.The company's Q2 order intake totaled 9.92 billion Norwegian krone ($1.02 billion), down from the previous year's 10.93 billion krone, according to the report.Order backlog at the end of the quarter, meanwhile, stood at 77.17 billion krone, up versus the prior year's 67.95 billion krone.During the quarter, Aker Solutions secured a long-term engineering and maintenance agreement with Cenovus Energy (CVE) for the White Rose field assets in Canada, and was awarded a supply contract for Tussa II hydropower plant's electromechanical equipment.The company said it has also completed the load-out of Hugin B platform topside for Aker BP and has begun the construction of carbon capture and storage project in Norway.
Canadian drilling activity softened as the Western Canadian Sedimentary Basin rig count fell to 204, while sector fundamentals remained resilient, RBC Capital Markets said in a Tuesday note.The firm said its Canadian oilfield services coverage group remains up 31% year to date, outperforming the S&P/TSX Capped Energy Index, which has advanced 26.3% over the same period.CES Energy Solutions led the group with a 4.8% gain, while Pason Systems slipped 0.8% and Enerflex declined 3%, making them the top three performers, RBC said.Precision Drilling was the weakest performer, falling 8.2%. Ensign Energy Services dropped 4.6% and Trican Well Service lost 4.1%, rounding out the bottom three performers, the note said.RBC said the Q2 average rig count reached 165, exceeding its estimate of 143. Private operators added one rig over the week, while large exploration and production companies reduced activity by one rig.The Montney rig count increased by three week over week to 39. Ovintiv (OVV) led operators with six rigs, followed by Tourmaline with five, while Precision Drilling remained the top contractor with 23 rigs, ahead of Ensign with seven and Savanna with five, RBC said.The Duvernay rig count declined by one week over week to 14. Whitecap Resources led operators with three rigs, followed by Canadian Natural Resources with two, while Ensign Energy Services remained the top driller with six rigs, ahead of Precision Drilling and Savanna, each with two.The Viking rig count fell by three week over week to two. Teine Energy operated both active rigs, while Ensign Energy Services and Savanna each drilled one rig, according to the note.The Oil Sands rig count declined by four week over week to 10. Cenovus Energy (CVE) led operators with four rigs, while CNOOC and Canadian Natural Resources each ran two. Precision Drilling remained the leading contractor with eight rigs.RBC said Canadian exploration and production companies are on track to generate $6.9 billion in pre-dividend free cash flow in 2026 and $6.4 billion in 2027 using futures strip pricing.RBC expects producers to reinvest 64% of cash flow in 2026 and 67% in 2027, compared with the five-year trailing average of 64%.Price: $23.81, Change: $-0.71, Percent Change: -2.88%
Energy stocks were declining premarket Friday, with the State Street Energy Select Sector SPDR ETF (XLE) 0.4% lower.The United States Oil Fund (USO) was down 3% and the United States Natural Gas Fund (UNG) was 2.3% higher.Front-month US West Texas Intermediate crude oil was 3.2% lower at $69.64 per barrel at the New York Mercantile Exchange. Global benchmark North Sea Brent crude oil lost 3.5% to $72.64 per barrel, and natural gas futures were up 1.5% at $3.39 per 1 million British Thermal Units.Equinor (EQNR) shares were down more than 1% after the company said it is ending its offshore wind business activities in Japan and shut its Tokyo office by the end of the year.Cenovus Energy (CVE) has awarded a five-year engineering and maintenance services contract for its White Rose offshore field assets to Aker Solutions, the latter said. Cenovus Energy stock was 0.6% lower premarket.TotalEnergies (TTE) said the Paris Judicial Court rejected a bid by environmental groups and the City of Paris to block new oil and gas projects or force production cuts under France's duty of vigilance law. Shares of TotalEnergies were down 0.2% pre-bell.
Cenovus Energy (CVE) has awarded a five-year engineering and maintenance services contract for its White Rose offshore field assets to Aker Solutions, the latter said Friday.Aker said the contract is classified as "sizeable," typically valued between 500 million Norwegian kroner ($50.5 million) and 1.5 billion kroner.The agreement covers support for the West White Rose platform and the SeaRose floating production storage and offloading vessel located about 350 km east of St. John's, Newfoundland and Labrador in Canada, Aker said.
May production estimates pointed to strong performance at Cenovus' (CVE) Foster Creek and Christina Lake assets, while other major oil sands operations produced mixed results, TPH Energy said in a Thursday note.TPH Energy estimated combined production at Foster Creek and Christina Lake averaged about 603,000 barrels per day in May, lifting the quarter-to-date average to about 602,000 b/d, above its second-quarter forecast of 576,000 b/d.Foster Creek increased about 8,000 b/d from April to roughly 223,000 b/d, while Christina Lake added about 13,000 b/d to 379,000 b/d.Sunrise also rose about 6,000 b/d, lifting its quarter-to-date average to about 65,000 b/d versus TPH Energy's 60,000 b/d estimate.Imperial Oil's Cold Lake production declined about 9,000 b/d from April to an estimated 142,000 b/d. Its quarter-to-date average reached about 147,000 b/d, below TPH Energy's second-quarter forecast of 156,000 b/d.Suncor Energy's (SU) Firebag production fell about 111,000 b/d to roughly 105,000 b/d ahead of a planned turnaround.However, its quarter-to-date average remained at about 161,000 b/d, slightly above TPH Energy's 159,000 b/d estimate, while MacKay River averaged about 36,000 b/d versus the firm's 35,000 b/d forecast.Canadian Natural Resources (CNQ) posted mixed operating results. Kirby increased about 2,000 b/d to 60,000 b/d, lifting its quarter-to-date average to about 59,000 b/d compared with TPH Energy's 53,000 b/d forecast.Primrose Wolf Lake rose about 1,000 b/d to 74,000 b/d but stayed below the firm's 91,000 b/d outlook, while Jackfish rebounded about 30,000 b/d to 145,000 b/d, bringing its quarter-to-date average to about 130,000 b/d versus the projected 132,000 b/d.Price: $24.58, Change: $-0.11, Percent Change: -0.45%
The Western Canadian Sedimentary Basin rig count increased by nine over the week to 209, reaching 55 above year-ago levels and surpassing RBC Capital Markets' second-quarter forecast of 143 rigs, RBC Capital Markets said in a Tuesday note.The 209-rig count sits 34 above the five-year average, while the quarter-to-date average of 162 has surpassed RBC's second-quarter forecast of 143 rigs, according to the note.Private operators added three rigs over the week, while large exploration and production companies producing more than 75,000 barrels of oil equivalent per day increased activity by six rigs, RBC said.Montney activity rose by one rig to 36. Ovintiv (OVV) operated six rigs, and Tourmaline ran five, while Precision (PDS) held 22 rigs, or 61% of the total, followed by Ensign with seven rigs, or 19%, and Savanna with four rigs.Duvernay activity declined by one rig to 15. Canadian Natural Resources (CNQ), Paramount, and Whitecap each operated two rigs, while Ensign led drillers with five rigs, or 33% of total activity, followed by Fox and Jomax with two rigs each, RBC added.Heavy oil drilling increased by five rigs to 52. Canadian Natural Resources operated 12 rigs, Spur six and Cenovus (CVE) five, while Precision controlled 24 rigs, or 46% of activity, ahead of Ensign's nine rigs and Savanna's five rigs.Oil sands activity fell by two rigs to 14. Cenovus operated six rigs, while CNOOC and Canadian Natural Resources each ran two.RBC expects covered producers to generate $7.6 billion of pre-dividend free cash flow in both 2026 and 2027 while reinvesting 62% and 63% of cash flow, below the five-year average of 64%.Canadian oilfield services stocks declined 1% over the week. Enerflex (EFXT) gained 8.3%, Calfrac advanced 2.9%, and Trican added 2.2%, while Precision (PDS) fell 3.2%, Ensign lost 4.1%, and Pason dropped 5.2%, the note said.RBC's Canadian oilfield services coverage group has gained 34.8% so far in 2026, outperforming the S&P/TSX Capped Energy Index, which has advanced 30.6% over the same period.Price: $24.55, Change: $-0.70, Percent Change: -2.77%
US Gulf Coast heavy crude markets are showing signs of divergence as widening discounts for Mexico's Maya blend clash with tightening supplies of Western Canadian Select, TPH Energy strategists said in a note on Monday.Matthew Blair, TPH Energy analyst, said that the market for Maya crude has weakened, with state-owned Pemex widening its discretionary "K factor" price adjustment to a $ 9.20-per-barrel discount for July, steeper than the $8.15 set in June and $4.35 in May.TPH analysts forecast that the move will push Maya-Brent differentials toward a $9.71/bbl discount at the start of Q3, a notable shift from the $7.58 average seen in Q2.The broader heavy crude landscape has been volatile in 2026. TPH said differentials widened in Q1 as additional barrels from Venezuela entered the market, but narrowed in Q2 as regional supplies tightened due to reduced Middle Eastern sour crude shipments.Simultaneously, WCS at Houston has seen its discount to Brent narrow significantly to $7.52 in June, down from $15.12 recorded in May.Market participants attribute this tightness in Canadian heavy crude to supply-side constraints at the source. TPH said unfavorable wet weather in Canada has hindered oil sands operations, compounded by an unplanned outage at Cenovus Energy's (CVE) Foster Creek and Christina Lake assets.The bank said the shifting dynamics in heavy crude pricing carry significant implications for Gulf Coast refiners, specifically Valero Energy (VLO), PBF Energy (PBF), Phillips 66 (PSX), and Marathon Petroleum (MPC).Price: $25.68, Change: $+0.52, Percent Change: +2.05%
Recovering oil supplies from the Middle East and Russia, combined with weak Chinese demand, are keeping global crude markets well supplied despite temporary disruptions in Canada, Kpler said in a Tuesday analysis.Non-Iranian crude and condensate flows through the Strait of Hormuz reached 2.9 million barrels per day in June month-to-date, the highest level since the conflict began. Increased exports from the UAE, Iraq and Kuwait drove much of the recovery.Ship-to-ship transfers near Fujairah accounted for another 1.56 million b/d that remain difficult to trace, according to Kpler.Improving security conditions have supported the rebound. US President Donald Trump recently said about 100 million barrels of oil moved through the strait during the past month, broadly matching Kpler's estimate of 98 million barrels since May 1.Despite the improvement, market conditions remain constrained. About 80% of Hormuz transits now involve dark activity, while total Persian Gulf crude and condensate exports averaged 3.76 million b/d month-to-date, far below pre-war levels of about 15 million b/d.Inventory withdrawals rather than fully restored production have fueled recent export growth. Floating storage volumes in the Persian Gulf, excluding Iran, have fallen by 69 million barrels since late April, including declines of 13 million barrels in Basrah Medium, 8 million barrels in Arab Extra Light, and 7 million barrels each in Arab Light and Das crude.Kuwait has relied on inventories to support exports, reducing storage by 7.6 million barrels over the past two weeks, equivalent to roughly 580,000 b/d, according to Kpler.Signs of production normalization are emerging in the UAE, where stronger activity at Upper Zakum and Das and increased Adnoc marketing efforts indicate a gradual recovery in output, Kpler said.Asian buyers secured most of the 12 million barrels of Upper Zakum crude recently sold by Adnoc, which also offered Zakum cargoes from Sidi Kerir into the Mediterranean in an uncommon move to reach additional markets.Kpler increased its estimate for UAE crude output to 3.18 million b/d in May, up from 2.60 million b/d in April and 2.28 million b/d in March, although production still trails pre-war levels by about 720,000 b/d.Greater crude availability from the Persian Gulf has yet to revive Chinese buying interest. Sinopec declined to nominate Saudi cargoes for July despite a $6-per-barrel reduction in Saudi Aramco's Asian official selling prices, Kpler said.Compared with rival grades, Arab Light remains relatively expensive. Kpler said the crude trades at a $9.50/bbl premium to Oman-Dubai benchmarks and lands in Northeast China at more than $10/bbl above ICE Brent.Alternative supplies continue to hold a pricing advantage in China. Brazilian Tupi and Norwegian Johan Sverdrup cargoes arrive at premiums of about $7/bbl to $7.50/bbl, while Russia's ESPO and Urals trade at roughly $1.50/bbl and negative $1/bbl, respectively, according to Kpler.Saudi Arabia shipped 3.74 million b/d from Yanbu in May, down 400,000 b/d from the prior month, as stronger domestic refinery demand, rising Gulf exports and subdued Chinese buying reduced overseas shipments, Kpler said. China's seaborne crude imports are expected to stay near May's 6.7 million b/d level.Severe weather across northeastern Alberta, including wildfires, flooding, and thunderstorms, disrupted operations at Cenovus Energy's (CVE) Foster Creek and Christina Lake facilities.The company declared force majeure, temporarily curtailing roughly 4% of its bitumen production, tightening heavy crude availability in the Canadian market.The supply disruption quickly tightened heavy crude balances, with the July WCS discount at Hardisty moving to around $12/bbl under Nymex, a three-month high, while WCS Houston narrowed to a discount of roughly $2.70/bbl.At the same time, weaker demand for diluent pushed Fort Saskatchewan condensate to nearly a $9/bbl discount to Nymex, its weakest level since June 2022.Although recent rainfall has helped contain the wildfires, uncertainty remains around the timing of a full recovery at Cenovus' affected assets.Until production returns to normal levels, Canadian heavy crude markets are likely to remain relatively tight, supporting heavy oil differentials in the near term.Russian crude exports climbed to multi-year highs in May, averaging nearly 3.9 million b/d, as refinery outages caused by Ukrainian drone strikes reduced domestic processing demand.With less crude being refined at home, more barrels were directed to export markets, increasing the availability of Russian crude globally.Recovering refinery operations are likely to reduce Russian crude exports in June. Kpler expects offline refining capacity to shrink to about 300,000 b/d by July from 2.9 million b/d in May, while crude production rises to 10.14 million b/d in June and 10.2 million b/d by August.Price: $26.33, Change: $-0.78, Percent Change: -2.88%
Western Canadian crude production is declining due to heavy rain and a power outage at Cenovus Energy's (CVE) oil sand facilities, potentially tightening supplies to the US, Reuters reported Thursday, citing sources and analysts.The pace of oil sands production has reportedly slowed due to wet weather in northern Alberta.In Cenovus Energy's Foster Creek and Christina Lake oil sand assets, a power outage last week prompted the company to declare force majeure, sources told Reuters.Meanwhile, Energy Aspects said the power outage has affected 10% of the company's oil sands production, the news agency said.Cenovus did not immediately respond to' request for comment.Western Canadian crude inventories have dropped to their lowest level since 2020, Wood Mackenzie analyst Lee Williams reportedly said, with stocks decreasing by nearly 8 million barrels since the end of February. More than half of this reduction occurred over the past two weeks alone.Declining Canadian crude output could decrease flows to storage tanks at Cushing, Oklahoma, and to refineries in the US Midwest and Gulf Coast, the news agency said. Midwest refiners typically process oil sands crude and heavily rely on Canadian oil, having no access to waterborne crude.US crude inventories, including strategic petroleum reserves, have dropped to 775.7 mmbbls in the week ended June 5, from 854.7 mmbbls in late February before the US-Iran war began, data from the Energy Information Administration showed.In Cushing, data showed crude stocks recently fell to 21.6 mmbbls from 26.5 mmbbls in late February. Inventories could drop to their operational minimum, according to sources cited by Reuters.In Asia, some buyers have turned to Canada for alternative supplies following the closure of the Strait of Hormuz.Canada's Trans Mountain pipeline, which transports oil to the Pacific coast for export, is reportedly running at full capacity for the first time since the completion of a major expansion two years ago.Amid tightening supply and demand balance, Canadian heavy crude prices have recently surged, with Western Canada Select's discount to North American benchmark West Texas Intermediate narrowing by about $4 per barrel since the end of May, according to the news agency.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
Canadian oil sands producers showed a mixed but broadly firm production profile in April, with several major operators tracking ahead of Q2 expectations, according to TPH Energy strategists on Tuesday.Cenovus Energy (CVE) led the group, with combined Foster Creek and Christina Lake volumes averaging about 600 million barrels per day in April, above the TPH Q2 estimate of 576 million b/d.Jeoffrey Lambujon, analyst at TPH Energy, said that the energy firm's key assets, Foster Creek and Christina Lake, rose over the month by about 7 million b/d to about 215 million b/d and 366 million b/d, respectively.The company's Sunrise project also strengthened, increasing about 8 million b/d over the month to a quarter-to-date average of 62 million b/d, ahead of the modeled 60 million b/d.TPH said Suncor Energy (SU) showed an uneven trend ahead of planned maintenance. The energy firm's Firebag operations declined, falling about 24 million b/d over the month to 216 million b/d, well above TPH's Q2 estimate of 159 million b/d, while MacKay River edged higher by 2 million b/d to 35 million b/d, broadly in line with expectations.Lambujon said the mixed performance suggests volatility ahead of turnaround activity.Imperial Oil saw Cold Lake volumes ease by about 6 million b/d over the month to an estimated 151 million b/d, below TPH's Q2 forecast of 156 million b/d.The softness points to modest operational drag versus expectations in the in-situ segment, Lambujon said.Canadian Natural Resources (CNQ) delivered a more balanced performance, with Kirby projects flat over the month at a quarterly average of about 58 million b/d, ahead of the 53 million b/d TPH estimate.The company's Primrose Wolf Lake assets edged lower by 1 million b/d to 73 million b/d. However, it remained below the modeled 91 million b/d for the quarter. Jackfish was the weakest spot, falling 19 million b/d over the month to 115 million b/d, below the 132 million b/d forecast.Overall, TPH said the data points to resilience in key FCCL and select in-situ assets. However, performance dispersion remains pronounced across operators and individual projects as the sector moves deeper into Q2.Price: $29.29, Change: $-0.77, Percent Change: -2.55%
Canada's oilfield services activity strengthened last week, with the Western Canadian Sedimentary Basin rig count rising by 10 over the week to 151, RBC Capital Markets strategists said in a note on Thursday.RBC analysts said the latest reading places total active rigs 26 above 2025 levels and 35 above the five-year average.The quarter-to-date average of 151 rigs has already exceeded RBC's Q2 estimate of 143, with additional seasonal strength expected in the second half of the quarter. Based on five-year trends, RBC said rig activity typically rises by about 26% over the last half of the quarter.By operator grouping, activity among private producers increased by six rigs week-over-week, while large exploration and production producing over 75 barrels of oil equivalent per day held steady.Montney, Canada's largest gas and liquids play, activity held steady week-over-week at 34 rigs. RBC said the key operators include Tourmaline Oil, with five rigs, and Ovintiv, with four rigs.Drilling activity remains dominated by Precision Drilling (PDS), which accounted for 21 rigs or 62% of total activity in the play, followed by Ensign Energy and Savanna.Drilling in the Duvernay also held flat at 17 rigs, with operators including Paramount Resources, Whitecap Resources, and Canadian Natural Resources (CNRL). On the services side, Ensign led with six rigs, followed by Fox and Jomax.Southeast Saskatchewan saw a modest uptick, rising by six rigs over the week to nine, while oil sands and heavy oil activity increased by four rigs to 54.Canadian Natural Resources led activity with 12 rigs in the oil sands segment, followed by Cenovus Energy (CVE) and Spur. Precision Drilling (PDS) remained the dominant contractor in the oil sands, running 30 rigs or 56% of total activity.On capital discipline, RBC's Canadian E&P coverage projects $10.2 billion in pre-dividend free cash flow in 2026 and $9.5 billion in 2027, based on current futures pricing.RBC said the estimates imply reinvestment rates of 55% in 2026 and 57% in 2027, below the five-year trailing average of 64%, suggesting continued emphasis on shareholder returns across the sector despite elevated activity levels.
Energy stocks were higher late Tuesday afternoon, with the NYSE Energy Sector Index rising 0.8% and the State Street Energy Select Sector SPDR ETF (XLE) adding 1.4%.The Philadelphia Oil Service Sector Index was decreasing 0.3%, and the Dow Jones US Utilities Index rose 0.7%.Front-month West Texas Intermediate crude oil was down 0.8% at $107.77 a barrel, and the global benchmark Brent crude contract was shedding 0.6% to $111.39 a barrel. Henry Hub natural gas futures rose 3.6% to $3.13 per 1 million BTU.In corporate news, X-Energy (XE) can deploy about 20 gigawatts of nuclear power by 2040 underpinned by a solid technology value proposition, a capital-light business model, and commercial partnerships, Morgan Stanley said in a note. Morgan Stanley started coverage of the stock at overweight with a price target of $41. X-Energy shares gained 4%.Cenovus Energy's (CVE) addition of MEG Energy's Christina Lake asset to its portfolio late last year has created a huge in-situ oil sands complex which should yield synergistic development opportunities for decades to come, RBC Capital Markets said in a note. Cenovus shares rose 0.7%.Equinor (EQNR) shares climbed 2.8% after the firm said it has signed a five-year agreement with Dutch energy provider Eneco to supply natural gas from the Norwegian continental shelf.BP (BP) maintained the lockout at its Whiting refinery in Indiana after failing to reach a deal with the United Steelworkers, Local 7-1, the company said. BP shares were up 1%.
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