Q: Both TOU and ARX have access to LNG producers through contracts already in place. Do you see these contracts as any kind of hedge or insurance against possible US tariffs on natural gas?
I'm a big believer in the future of natural gas, and therefore hold these companies as my second and fourth largest holdings. Do you like any other Canadian gas producers better than these two?
I'm a big believer in the future of natural gas, and therefore hold these companies as my second and fourth largest holdings. Do you like any other Canadian gas producers better than these two?
5i Research Answer:
Yes, we think any long term contract can be considered a bit of a hedge. These are very long term contracts. We would consider AAV/PEY to also be decent, but not necessary 'better' than ARX. TOU would remain our favourite.