10:42 AM EDT, 07/05/2024 (MT Newswires) -- Canadian exploration and production companies are expected to report "largely drama-free" results results amid a "lower activity (spring breakup)" second quarter, RBC Capital Markets said in a Thursday note.

Key themes to watch include free cash and rate of change programs as well as producer behavior and commentary amid very low Alberta Energy Co. pricing, RBC said.

RBC added it sees "meaningful capex cuts or shut-ins as unlikely".

ARC Resources ( AETUF ) , Topaz (TPZ.TO) and Tourmaline Oil (TOU.TO) are RBC's top ideas in the sector, saying that they are "best positioned on operational sustainability, RoC metrics, and asset quality, though not necessarily with the most "torque" to commodity prices.

The second-quarter reporting season will start July 15 with PrairieSky Royalty ( PREKF ) 's results after market close.