Goldman Sachs says favourable environment for growth exists for Canadian oil firms even though they are currently out of favour with investors
Adds group is currently facing ire of investors due to environmental concerns, pipeline constraints, leverage levels and poor returns on capital
However, still sees conducive environment for stock picking with “healthy” intra-sector share price performance likely ahead
Believes Canadian oil firms offer higher levels of free cash flow generation, less risk around changes in tax rates/regulations and continue to be beneficiaries of OPEC+ cuts than refiners and super majors like Exxon