Everything You Need to Know on Monday: Canada's Biggest Oil Producers Start Releasing Their Earnings

Good morning mooers! Here are things you need to know about today's market:

● S&P/TSX 60 Index Standard Futures are trading at 1,370.60, up 0.26% from previous close

● Federal government posts $3.9B deficit in April, May

● Canada's biggest oil producers start releasing their earnings

● Rogers stock rout means it's a 'great time to buy': TD Bank

Today, the Canadian dollar is trading at 72.22 cents US, a slight decrease from previous close.

S&P/TSX 60 Index Standard Futures are trading at 1,370.60, up 0.26% from previous close.

The federal government posted a $3.9 billion deficit in the first two months of the fiscal year.

The result for the April-to-May period compared to a $1.5 billion surplus for the same stretch last year.

Revenues increased $6.5 billion, or 8.9 per cent, largely due to higher tax revenues.

The Finance Department says program expenses excluding net actuarial losses rose $10 billion, or 15.9 per cent.

Public debt charges increased $2.3 billion, or 33.8 per cent, due to higher interest rates.

Net actuarial losses fell $0.4 billion, or 23.2 per cent.

The companies will be expected to elaborate on the effect of the Trans Mountain Pipeline expansion (TMX), which officially opened on May 1. The new pipeline connects Alberta and British Columbia and has a capacity of 590,000 barrels per day, which should provide better prices to Canada’s oil producers and reduce the price differential between Canadian and U.S. oil.

In the second quarter, the differential narrowed to $13.55 per barrel, down 18 per cent compared to the average during the period between 2021 and 2023, Bank of Nova Scotia analyst Jason Bouvier said in a note on July 15.

But Canadian Imperial Bank of Commerce earlier this month said it expects the differential to widen going forward due to the “modest apportionment on the Enbridge Mainline and lower demand for heavy barrels.”

Despite that, Meg Energy expects the differential to be within the $10-to-$15 range in the long term.

After letting them stagnate for well over a year, Canadian wireless carriers — including Rogers’ rival Freedom Mobile Inc. — are finally hiking prices, according to TD Securities’ Vince Valentini. He expects Rogers to follow suit, that paired with the Bank of Canada’s recent rate cuts leaves the telecommunications giant “set up for meaningful upside in the near-term.”

Since Rogers reported second-quarter earnings on Wednesday, Valentini now sees a light at the end of the tunnel and he’s updated his estimates on service revenue and earnings before interest, taxes, depreciation and amortization.

His team expects consolidated EBITDA to be 0.2 per cent higher for 2025, reflecting increased confidence that increased prices will improve revenues in Rogers’ wireless and cable/wireline segments.