An opinion please on this one with the following points in mind. We all know the sector has lagged, but CVE has a lot of people putting it in the enigma pew. Quality inventory, 71% heavy, diversified with three refineries, fair dividend, BS ok and yet it goes no where. Sentiment is definitely against these guys. G&M article Dec 3, Brian Donovan " The intrinsic value of Canadian oil stocks and what Trump's proposed tariff would mean for them", ends by picking CVE as the one their models show upside for . Eric Nuttall on Nov 21 said that it was one of his worst calls in 2024 picking this instead of Suncor. I await your detailed reply, and I thank you by not asking questions with 30 companies like some. I do my own ground work.
All the best,
Ben.
CVE is a large blue chip energy stock, and while it has done nothing this year, we would not consider it so bad overall. It is cheap at 10X earnings. The dividend was raised in May and it also paid a 13.5c special dividend then as well. This year didn't show much EPS growth but that was largely price related. 7% growth is expected next year. The share count has declined by nearly 200 million shares in the past three years. With maintance work done at Christina Lake, production is set to increase now. We would consider the balance sheet, with debt at less than 7 months' cash flow, as much better than 'ok'. SU's integrated operations give it more diversity, but if we look at CNQ, CVE is not that far behind in terms of relative performance. We would be OK holding it certainly at this low valuation.