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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Hello ... I purchased SGY a couple of years ago at much higher levels and am now thinking of averaging down. I consider Surge to be one of the better names in the small cap oil space (if that's possible) as I feel they have good assets, solid management, manageable debt and a sustainable dividend (provided energy prices don't take a tumble). I also think they are a potential take-over target. I'm looking at a 3+ year hold.
Comments please.
Read Answer Asked by Richard on January 22, 2019
Q: Thanks for your prompt answer on MEG. Given these circumstances what does the pricing dynamic look like? HSE failed to offer enough to persuade sufficient share holders to accept their offer, which implies a higher valuation should apply, so even if HSE foresaw issues which made it prudent to withdraw their offer, which should have been priced below their finally acceptable price, the current pricing should be well below that reasonably attributable to MEG, and what is the sentiment that might apply both to share holders that tendered and those that did not?
Read Answer Asked by Mike on January 22, 2019
Q: ..with Husky pulling the plug on MEG how would you rank these companies as possible targets, or are there any others you think are attractive. thanks.
Read Answer Asked by Curtis on January 18, 2019
Q: If I read the news correctly Husky took up from tendered shares 50% of those outstanding at their bid price some $3 above todays price, and subsequent turnover is over 60 million. Assuming Huskey was a competent offeror an that the tendered shares were paid for what is to stop them acquiring the majority of the balance at todays much reduced price in the open market and would that be a competent and allowed strategy?
Read Answer Asked by Mike on January 18, 2019
Q: Good morning 5i Team

I'm getting myself up to speed on light oil versus heavy oil. WCS, which is a blend of bitumen and other Alberta oils is heavy oil. Canadian refineries for the most part can't process heavy oils (only about 100,000 barrels a day) so most is shipped to the US where refineries are optimized for the stuff. The general consensus is that more pipelines to US (not to tidewater) will allow more WCS to be shipped and will therefore aborb the additional supply that has come on stream recently.

My question is: With the US refineries already running at capacity, how can they absorb significantly more WCS?
Read Answer Asked by Peter on January 17, 2019
Q: Hello Peter, Ryan and Team,

I was lucky to pick up a decent amount of PXT on December 20, which means that it is now at a 6% weighting of my portfolio. PTX is my only Energy position other than ENB which is more of a utility.

Would you recommend trimming PTX and adding SU, or replacing PTX with SU, or leaving PTX and adding a 2.5% position of SU or do nothing? I like the momentum of PTX at the moment and with a good cash balance, 6x P/E and no debt, it looks like it should have more room to run.
Read Answer Asked by Wes on January 17, 2019
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