January 30, 2018 / 11:12 AM / in 7 months

BUZZ-U.S. refiners to be tax reform's key beneficiary - RBC

** RBC says U.S. refiners to benefit substantially from U.S. President Donald Trump’s tax reforms

** Brokerage expects U.S. refiners to have 15 pct earnings growth and $3 bln-$3.5 bln per year benefit to discretionary cash flow

** We do not see a meaningful cash tax impact on the U.S. E&Ps, with the vast majority continuing to pay no cash taxes at all - RBC analysts

** U.S. integrated oil cos have generated losses in their upstream business in 2015-16 and have paid minimal tax; RBC says impact of tax reform on integrated cos “less obvious”

** Brokerage says U.S. midstream cos and MLPs will gain from structural advantages; MLPs to have lower gains vs corporations

** Canadian energy cos to have modest negative impacts from reforms

** Oilfield services cos to have limited impact immediately, but longer term tax reforms could be positive for EBITDA generation if cash is used for M&A or if E&Ps increase drilling expenditures - RBC (Reporting by Anirban Paul)

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