10:22 AM EDT, 10/21/2024 (MT Newswires) -- RBC Capital Markets on Monday outlined its top picks among oil companies in its Global Energy Best Ideas list.

RBC said its list of favorite producers includes Canadian Natural Resources ( CNQ ) , Suncor Energy Inc. ( SU ) , ARC Resources Ltd. ( AETUF ) and Tourmaline Oil (TOU.TO) in Canada.

RBC said despite choppy oil markets, it continues to favour upstream oil-weighted producers that possess certain ingredients.

In RBC's view, and as its Global Oil Strategist, Brian Leisen argues in 'Expedition Log, Pick Your Battles', OPEC non-compliance and non-OPEC production growth have put the global oil market in an oversupplied state and contributed to soft pricing conditions. By RBC's yardstick, the average WTI price in 2025 required to cover estimated total capital expenditures and base dividends across its global coverage group sits at about $60, with one half of its coverage in the $50s. RBC said: "The reengineered model many energy producers have embraced revolves around enhanced financial resiliency (via net debt reduction) and shareholder return optionality (with an accent on flexible buybacks), building a bigger moat around base dividends." Still, it added, some producers would be wise to undertake proactive steps today to drive down their breakevens.

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