Q: If you could give me your take on latest quarter I would appreciate it. Also, if you would comment on dividend stability that would be appreciated.
Thanks!
Thanks!
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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: Kindly comment on the CNQ results just released this morning. Thanks.
Q: I want to re-visit a question I asked previously (based on Eric Nuttall's appearance on BNN Bloomberg) and Lionel's input on it. I've reproduced those questions and answers below for reference.
To clarify, Eric was not bullish on natural gas, at least over the next year. What he was feverish on was heavy oil, and his top picks were the three companies above.
I had mentioned Tourmaline Oil which perhaps shifted the conversation toward natural gas, but I was really interested in your take on the heavy oil companies.
Do you share his enthusiasm about heavy oil? I'd appreciate if you could rank these companies. CVE seems the biggest but I sense he sees more potential in the other two which are smaller.
Q: Eric Nuttall was very bullish, almost feverish, on oil (represented by the companies above) while being down on natural gas. To what extent do you agree?
Asked by Kevin on February 27, 2023
5I RESEARCH ANSWER:
We like Eric and used to work right beside him (Peter answering). He is bright and gained lots of experience over the past 20 years. He showed a lot of guts in the oil crash when his fund dropped 70% in three months and fell to $20M in assets (he now manages more than $2B). The sector is very cheap, and vs past cycles corporate balance sheets are very strong. Certainly the lack of spending may results in higher prices over the next three years (depending on the economy). But...it will always be cyclical. The price of oil in fact is even down 14% from before the Ukraine war started. But we think some sector representation certainly makes sense. The TSX is currently at 17.4% energy. We might consider that a bit on the high side. In terms of natural gas, it can be very weather dependent, but we would be more bullish than Eric; the price has dropped so much this year, but it is also dependent on drilling, and the price drop is going to cause even less spending to be done on new gas wells.
Q: I am optomistic that Peter and Eric Nuttall are bullish on the gas sector, as in the 5i reply to Kevin's query (Feb 27). What are your views on XES? Technically, it looks like it has a huge runway to the upside ...Thanks....Lionel
5I RESEARCH ANSWER:
XES is the SPDR Oil and Gas Equipment & Services ETF. Certainly there is upside potential as oil and gas companies spend. However, there has been a trend in the industry towards dividends and buybacks, so spending this cycle may be less than in other periods. Still, the fund is up 38% in the past year, and its 35 holdings look solid. We would be OK owning this for sector exposure, with the understanding that it is always going to be cyclical.
To clarify, Eric was not bullish on natural gas, at least over the next year. What he was feverish on was heavy oil, and his top picks were the three companies above.
I had mentioned Tourmaline Oil which perhaps shifted the conversation toward natural gas, but I was really interested in your take on the heavy oil companies.
Do you share his enthusiasm about heavy oil? I'd appreciate if you could rank these companies. CVE seems the biggest but I sense he sees more potential in the other two which are smaller.
Q: Eric Nuttall was very bullish, almost feverish, on oil (represented by the companies above) while being down on natural gas. To what extent do you agree?
Asked by Kevin on February 27, 2023
5I RESEARCH ANSWER:
We like Eric and used to work right beside him (Peter answering). He is bright and gained lots of experience over the past 20 years. He showed a lot of guts in the oil crash when his fund dropped 70% in three months and fell to $20M in assets (he now manages more than $2B). The sector is very cheap, and vs past cycles corporate balance sheets are very strong. Certainly the lack of spending may results in higher prices over the next three years (depending on the economy). But...it will always be cyclical. The price of oil in fact is even down 14% from before the Ukraine war started. But we think some sector representation certainly makes sense. The TSX is currently at 17.4% energy. We might consider that a bit on the high side. In terms of natural gas, it can be very weather dependent, but we would be more bullish than Eric; the price has dropped so much this year, but it is also dependent on drilling, and the price drop is going to cause even less spending to be done on new gas wells.
Q: I am optomistic that Peter and Eric Nuttall are bullish on the gas sector, as in the 5i reply to Kevin's query (Feb 27). What are your views on XES? Technically, it looks like it has a huge runway to the upside ...Thanks....Lionel
5I RESEARCH ANSWER:
XES is the SPDR Oil and Gas Equipment & Services ETF. Certainly there is upside potential as oil and gas companies spend. However, there has been a trend in the industry towards dividends and buybacks, so spending this cycle may be less than in other periods. Still, the fund is up 38% in the past year, and its 35 holdings look solid. We would be OK owning this for sector exposure, with the understanding that it is always going to be cyclical.
Q: Peter; If I read their numbers correctly they’re only expecting $270M FCF in 2023- is this a miss ? Thanks
Rod
Rod
Q: Can you please comment on today's results.
Q: Now that energy stocks are going out of favour, it's time to start looking at the what might be attractive from a valuation point. I'm looking for a US energy company (not XOM or CVX): what are your thoughts on DVN and PXD? Is one preferable or do you have another suggestion? Thanks.
Q: Hi, Could you please comment on the quarterly/annual results released today., which appears to be strong. Company also seems to be committing to regular and special dividends through 2024, and returning 50-90% of FCF to shareholders !! Sweat !!! There has been so much pessimism about TOU and NG producers, recently. Do you expect the stock to recover and see better price action, over next 12-18 months ? Thanks
Q: Please provide your comments on the recent quarterly & full year report and outlook for BTE. Thanks
Q: In a response to Cal yesterday regarding ENB you stated that the loss of Line 5 "would certainly be a materially negative event for the company". I am trying to determine if this should result in my cutting back on my full position of ENB (5%). So I would appreciate it if you could expand on what a "materially negative impact" means. Also, do you have an opinion on the likelihood that Line 5 will be shut down?
Thank you.
Note I thought I had sent this question yesterday but a tech glitch may have prevented it being sent.
Thank you.
Note I thought I had sent this question yesterday but a tech glitch may have prevented it being sent.
Q: Hi Team,
Do you have any very recent updates on RNW?
Is this one a lost cause? Should I bail?
Thanks for your help.
Do you have any very recent updates on RNW?
Is this one a lost cause? Should I bail?
Thanks for your help.
Q: I am optomistic that Peter and Eric Nuttall are bullish on the gas sector, as in the 5i reply to Kevin's query (Feb 27). What are your views on XES? Technically, it looks like it has a huge runway to the upside ...Thanks....Lionel
Q: How would you view this company with their recent listing on NYSE and then buying Ranger? Will this be another WCP like scene...initial skepticism and then increased performance?
Q: Hi 5i,
I have a meaningful stake in WCP and am nicely in the green. I also have what I worry may be an irrational faith in its future prospects and its management, regardless of predictions that the energy sector will begin (or should I say continue?) to underperform in the not-too-distant future.
So, I'm looking for a reality check.
I have recently read elsewhere that WCP's debt, both short and long term, while presently manageable, is of a magnitude to potentially cause WCP significant problems that may well negatively impact both its share price and dividend if its revenues decrease by the amounts some are predicting over the next year and beyond.
Although I understand that there is 'good' debt and 'bad' debt and can both tell the difference in my personal life, and recognize how it is affecting me, analyzing the debt of a specific company in relation to its current and anticipated future revenues, CAPEX, FCF, EPS, P/E, etc. etc. is beyond me.
I would greatly appreciate your thoughts on the future prospects of WCP in this context.
Thanks.
Peter
I have a meaningful stake in WCP and am nicely in the green. I also have what I worry may be an irrational faith in its future prospects and its management, regardless of predictions that the energy sector will begin (or should I say continue?) to underperform in the not-too-distant future.
So, I'm looking for a reality check.
I have recently read elsewhere that WCP's debt, both short and long term, while presently manageable, is of a magnitude to potentially cause WCP significant problems that may well negatively impact both its share price and dividend if its revenues decrease by the amounts some are predicting over the next year and beyond.
Although I understand that there is 'good' debt and 'bad' debt and can both tell the difference in my personal life, and recognize how it is affecting me, analyzing the debt of a specific company in relation to its current and anticipated future revenues, CAPEX, FCF, EPS, P/E, etc. etc. is beyond me.
I would greatly appreciate your thoughts on the future prospects of WCP in this context.
Thanks.
Peter
Q: I'm thinking to sell FRU for a tax loss and add to WCP. Eric Nuttal mentioned WCP is increasing their dividend? Where would one find this info?
I'm seeing conflicting info on dividend yields, on this platform as well, where is the most up to date place to search for yield info?
Do you have any other picks than WCP to consider for an income investor for a long term bullish oil play?
I'm seeing conflicting info on dividend yields, on this platform as well, where is the most up to date place to search for yield info?
Do you have any other picks than WCP to consider for an income investor for a long term bullish oil play?
Q: I liked this when I bought it a few months ago but it's currently down a bit. Would you hold onto this equity or dump and move on?
Q: How do you like the results from today and it’s future growth opportunities?
Q: Hi Team,
Grateful if you could update your views on CEIX. Is it a hold or a sell for the short term ?
Thank you for your assistance,
Jacques IDS
Grateful if you could update your views on CEIX. Is it a hold or a sell for the short term ?
Thank you for your assistance,
Jacques IDS
Q: Can you please comment on today's earnings announcement. Is the dividend safe and would you consider the recent pull back to be a good entry point.
Thank you!
Thank you!
Q: Hello
Could you give us your take on the latest earnings for Transalta, Inergex, and Emera?
Please use necessary credits.
Thank you
Stephane
Could you give us your take on the latest earnings for Transalta, Inergex, and Emera?
Please use necessary credits.
Thank you
Stephane
Q: What do you think of their latest quarter.