-- Canadian energy infrastructure companies could see stronger growth prospects as elevated commodity prices create new project and contracting opportunities, RBC Capital Markets analysts said in a note on Monday.
The firm said that while many companies already entered 2026 with accelerating growth profiles, the current pricing environment, driven in part by geopolitical tensions, may unlock additional upside. Investors are expected to focus heavily on upcoming earnings calls for signals that companies can translate higher prices into tangible, long-term projects and contracts.
'Ultimately, we believe the market will attach the greatest value to companies that have highly visible projects and/or contracts that can capture the benefits of the high commodity price environment," RBC analysts wrote. They added that further clarity may emerge around opportunities tied to LPG, LNG, and oil infrastructure.
The recent increase in commodity prices and spreads is expected to drive upward revisions to earnings estimates, particularly in marketing-related segments. Wider frac spreads, blending margins, crack spreads, and regional price dislocations are all contributing factors.
Although some of these margin gains may prove temporary, linked to geopolitical disruptions such as the conflict in the Middle East, RBC emphasized that the near-term impact should still be meaningful. Higher cash flow generation could allow companies to reinvest in growth initiatives, supporting longer-term expansion.
For utilities, however, the outlook is more nuanced. Inflationary pressures tied to global events are intensifying concerns around affordability and increasing regulatory scrutiny. Investors are expected to seek reassurance that utilities can manage rate increases without undermining balance sheets or limiting growth in their rate base.
After a relatively soft start to the year, first-quarter 2026 results are now expected to exceed earlier forecasts. RBC attributed this shift to the Middle East conflict, which widened spreads correlated with crude oil prices, particularly in March, and to a polar vortex across central and eastern North America in January and February, which drove higher, more volatile natural gas prices while boosting demand for pipeline capacity.
Together, these factors are expected to benefit marketing-focused businesses across the sector, even though some spreads remain lower year over year.