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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: Hi Peter:

I have held Chevron for some time and wonder if a better bet may be Suncor.

I greatly value your opinion.

Thank you so much
Brian
Read Answer Asked by Brian on August 05, 2015
Q: I was reading the companies Q2 MD&A and noticed that the dividend payout ratio is noted at 35% of FFO for the first six months of 2015 (excluding the impact of DRIP). The dividend was cut to $0.10/share a while ago. Is a dividend cut a concern, as it looks like they have it covered from FFO? Or is the main concern with BTE the debt level? I noticed the debt is not due until 2021 which seems like they have a bit of a buffer to wait on higher oil prices. Just trying to figure out if the drop in share price is company specific or more the fact that the whole sector is getting hammered. Thanks
Read Answer Asked by Richard on August 04, 2015
Q: With oil having dropped over 50% and no signs of recovery, how secure are the dividends from the pipelines if prices stay low (or go lower) for the next couple years? Could you rank IPL, PPL, ALA and ENF in terms of dividend sustainability and provide your rationale?

Thank you
Read Answer Asked by grant on August 04, 2015
Q: We have ala, arx, cos, cpg, sgy, wcp in our portfolio, total less than 7% overall which we are comfortable with.

Except for ala and arx (held a few years), all others are down significantly (20% to 60%), our plan is to ride out the energy down turn.

In your opinion, is there any name(s) listed you would swap with better quality energy stock to position for better gain during upturn and log a capital loss for future use.

Thanks
Read Answer Asked by Steve on August 04, 2015
Q: Today Paul asked a question in which he included the following statement: [Plus I have PPL, ENB and IPL which you consider as utilities; all in very positive territory.]
Could you please confirm that you do in fact consider PPL, ENB and IPL to be utilities? Even if they are, I notice that their price tends to have close correlation to the price of oil.
Thank you.
Read Answer Asked by Dennis on July 31, 2015
Q: Hi Peter, I own the oil stocks: BTE, CPG, CNQ, WCP, TOU, SRG, in different portfolios, would it be worth adding to the ones that are down the most to hold for the long term until oil rebounds I would hate selling them now, is there a risk that some might not be around in 5 years? or would you just wait out the storm holding what you now have. Thanks, Nick
Read Answer Asked by Nick on July 31, 2015
Q: From the last question on SCL you were comfortable with this stock at $34. It is now close to a 52 week low (near $31.50). In these unusual market conditions has anything changed your opinion? i.e., it would seem like a good buy.

Don'y get me wrong, I know you don't have a crystal ball ... but the stock does look good at these prices.
Read Answer Asked by Danny-boy on July 31, 2015
Q: I had it recorded that Surge was to report their results on July 29, now I see where they are expected on July 30 (today) but interestly I can find no announcement from Surge on exactly when they would announce their results. Do you have insight on when their Q2 2015 will be made available to investors.
Read Answer Asked by Phil on July 30, 2015
Q: Hi guys, after the release of today's financial statement and conference call, could you please advise us if it is still a sell (down over 60%). My energy holdings (TOU, PSK and BTE) equal 5% of my portfolio. If I should sell, would purchasing more of the other 2 make any sense?

thanks,
Jim
Read Answer Asked by jim on July 30, 2015
Q: Peter et al.:

What is your opinion of the Bondholders agreement that was released yesterday? Will this result in an increase in the share price in the long term since the risk of bankruptcy has been reduced based on my interpretation? I know that the oil market is still in the dog house and this will be the biggest factor. They have had good success with Huntington since the CATS pipeline has restarted so they actually have cash flow now. Your opinion is much appreciated. Hopefully my lottery ticket is now worth 5 or 10 tickets now lol.

Regards,


Brendan
Read Answer Asked by Brendan on July 30, 2015
Q: I am considering adding an oil producer (WCP) to my portfolio which has 2% invested in PEY, TOU, & VET. My thinking is that if the break-even for most North American producers is $70- 90.00, and even the Saudi's are at $27/bl, then $47.00 is not sustainable. The big question is how long the price stays low.
Would you recommend starting to add WCP and building over the coming months or are there indicators you would want to see before making the investment.
Many thanks
Mike
Read Answer Asked by michael on July 28, 2015
Q: Hello Good People,
I just received notice that CDI and TDG are going to be one. The offer is $5.90 per CDI share or approx 1.0631 TDG shares, which one should I accept. Many thanks for help.
Bob.
Read Answer Asked by Robert on July 28, 2015
Q: Although my exposure to oil is manageable, I have accumulated over time various small positions in oil related companies such as: cos, bxe, rmp, cfl, bdi, frc, sgy, bte. I am trying to consolidate into only a few names going forward but was wondering if any of those name are now outright sell. With the current selloff I am either even or down on the names. Thank you.
Read Answer Asked by Pierre on July 28, 2015
Q: Hello Peter & 5i team,
I have reduced my exposure to energy producers last fall to 5% of my portfolio (TOU,VET and WCP) and I'm not giving up the ghost, yet.
I had also reduced my exposure to pipelines and mid streams to 10% of my portfolio (ALA,ENB,IPL,KEY and PPL) and wish to reduce it to 5%. I could reduce the weight of each holding or keep only 3; which 3 do you suggest I keep?
Thanks,
Antoine
Read Answer Asked by Antoine on July 27, 2015
Q: I would like to know what valuation model could be used for an early stage exploration company that has not booked any reserves. I am looking at some old analyst reports and they are using a Net Asset Value model and assigning Chance of Geological Success as high as 25-35% on some wells. How would one come up with a realistic CoGS number in this case. Nuttall says CoGS should be 3% so now my range is between 3%-35%. Can I just put in the mid?
Read Answer Asked by Kreshnik on July 27, 2015
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