11:29 AM EDT, 10/20/2025 (MT Newswires) -- RBC Capital Markets said Monday that producer response to lower commodity prices is the focal point of the upcoming third-quarter earnings season for Canadian exploration and production companies.

RBC noted this as producers deal with product surpluses, and its expectation is for wide 2026 budget ranges, with producers targeting low side.

According to RBC, AECO prices are likely to improve somewhat as LNG Canada continues to

ramp, though it expects supplies to remain plentiful on a combination of surplus DUCs and a prolific Montney basin, which tends to outperform.

"We continue to be cautious on oil macro exposure to the downside, with global tensions cooling and supply rising," RBC said.

RBC said its production and cash flow estimates generally sit below FactSet consensus figures on recent revisions, while price targets increased slightly on select estimate changes and modest changes to target multiples.

Price: 11.22, Change: +0.15, Percent Change: +1.36