RBC Expects Canadian E&P Companies to Discuss Use of Free Cash Flows During Q1 Earnings Season
RBC Capital Markets on Monday said it expects Canadian oil and gas exploration and production companies to discuss the use of free cash flows amid higher crude prices during the earnings reporting season for the first quarter.RBC expects the companies to outline their near-term focus on higher buybacks and debt repayment, with capital programs to increase later this year if pricing remains robust.According to RBC, AECO natural-gas prices experienced a brief rebound during the first quarter, but have since pulled back as supplies have remained robust, keeping pace with increased demand from LNG Canada.RBC said its estimates are largely above FactSet consensus forecasts for now.The earnings season will kick off April 20 with PrairieSky Royalty (PSK.TO) reporting after market close.Price: $10.11, Change: $+0.01, Percent Change: +0.10%