Investment Q&A

• Birchcliff Energy Ltd. (BIR $7.19)
  • $7.19 P/E (TTM): 26.41X Cap: $1.97B
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• Enerplus Corporation (ERF $26.78)
  • $26.78 P/E (TTM): 10.81X
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• Kelt Exploration Ltd. (KEL $9.35)
  • $9.35 P/E (TTM): 32.39X Cap: $1.80B
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• Surge Energy Inc. (SGY $8.52)
  • $8.52 P/E (TTM): 21.67X Cap: $848M
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• Tamarack Valley Energy Ltd. (TVE $10.72)
  • $10.72 Cap: $5.33B
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Q: following chord buyout enerplus and several 2023 deals can you suggest/speculate
possible future targets , i am thinking wcp, tve, bte.
thank you

Upvote 6

Read Answer Asked by Howard on February 22, 2024

• Skeena Resources Limited (SKE $42.76)
  • $42.76 Cap: $5.17B
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Q: Hello, Please provide your thoughts on Skeena Resources Limited. What are your key concerns.

Thanks

Upvote 2

Read Answer Asked by Harpinder on February 22, 2024

• Devon Energy Corporation (DVN $46.25)
  • $46.25 P/E (TTM): 11.08X Cap: $28.67B
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• Enerplus Corporation (ERF $26.78)
  • $26.78 P/E (TTM): 10.81X
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• Chord Energy Corporation (CHRD $123.45)
  • $123.45 P/E (TTM): 180.87X Cap: $6.99B
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Q: Txsfor u great view to my Q on ERF on Feb 5.After market close today announcement that Chord is acquring ERF and it rose close to 10% on its US listed shares in after hours. Devon was the rumored suitor in early Feb.Please comment and advise me what to do,Reports Q on Feb 22 after close.Txs for u usual great services & views

Upvote 3

Read Answer Asked by Peter on February 22, 2024

• Imperial Oil Limited (IMO $165.54)
  • $165.54 P/E (TTM): 20.87X Cap: $80.07B
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• Tourmaline Oil Corp. (TOU $67.09)
  • $67.09 P/E (TTM): 90.26X Cap: $25.80B
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• CES Energy Solutions Corp. (CEU $18.27)
  • $18.27 P/E (TTM): 23.38X Cap: $3.84B
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• TerraVest Industries Inc. (TVK $132.91)
  • $132.91 Cap: $2.88B
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Q: Underweight Energy. Considering either CEU or TVK. Please rank. Or are they different enough to own both in equal amounts? Thanks for your insights.

Upvote 3

Read Answer Asked by Jerry on February 21, 2024

• BMO Equal Weight Oil & Gas Index ETF (ZEO $99.48)
  • $99.48 P/E (TTM): 14.25X Cap: $304M
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• Global X S&P/TSX Capped Energy Index Corporate Class ETF (HXE $55.26)
  • $55.26 Cap: $116M
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• iShares S&P/TSX Capped Energy Index ETF (XEG $25.35)
  • $25.35 P/E (TTM): 12.58X Cap: $2.08B
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Q: Wanting to add Cdn. oil & gas producers to my portfolio. I would like to add 2 ETFs, one to go into my TFSA and the other into the taxable (cash) account. What I would like some thoughts/suggestions on, are possible alternatives. Obviously, one of my major concerns is tax efficiency. Thanks to other subscribers for their questions and, of course, to the 5i Team. Bill

Upvote 3

Read Answer Asked by Bill on February 21, 2024

• KeyCorp (KEY $18.90)
  • $18.90 P/E (TTM): 18.03X Cap: $20.94B
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• Kinder Morgan Inc. (KMI $33.39)
  • $33.39 P/E (TTM): 24.15X Cap: $74.21B
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• PPL Corporation (PPL $38.51)
  • $38.51 P/E (TTM): 23.67X Cap: $28.60B
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• AltaGas Ltd. (ALA $48.44)
  • $48.44 P/E (TTM): 18.78X Cap: $14.85B
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• Emera Incorporated (EMA $73.43)
  • $73.43 P/E (TTM): 19.3X Cap: $22.24B
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• Capital Power Corporation (CPX $61.75)
  • $61.75 P/E (TTM): 77.2X Cap: $9.67B
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• Gibson Energy Inc. (GEI $29.77)
  • $29.77 P/E (TTM): 23.0X Cap: $5.04B
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• Tucows Inc. (TC $21.91)
  • $21.91 Cap: $232M
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• Enbridge Inc (ENB $54.08)
  • $54.08 P/E (TTM): 27.96X Cap: $118.90B
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Q: What are your total return estimates (per year) for the above Utilities over the medium term (3-5 yrs.)?
Pls. include any utility that I have missed that would crack the top 3.
Are there any of the top 3 that would come with elevated risk?
Thanks, Hugh

Upvote 9

Read Answer Asked by Hugh on February 21, 2024

• Tourmaline Oil Corp. (TOU $67.09)
  • $67.09 P/E (TTM): 90.26X Cap: $25.80B
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• Topaz Energy Corp. (TPZ $31.41)
  • $31.41 P/E (TTM): 41.26X Cap: $4.82B
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Q: When do they report and what caused such a big price moving up

Upvote 4

Read Answer Asked by Guy on February 21, 2024

• TransAlta Corporation (TA $17.11)
  • $17.11 Cap: $5.16B
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Q: Your opinion on the outlook for this company. I have owned for many many years and am now in a loss position. It is not a large holding in my portfolio and wondering if I should sell and move on. If one was to sell, what would be a replacement suggestion?

Upvote 2

Read Answer Asked by Colleen on February 21, 2024

• Paramount Resources Ltd. Class A Common Shares (POU $29.71)
  • $29.71 P/E (TTM): 3.38X Cap: $4.31B
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Q: Hi Peter
I have the above POU.ca; it has been a disappointment
at 1 point, I thought someone is going to take over the company, is it still there?

I wonder for natural gas, I could switch over to a bigger company like CNQ, or TOU
or Su
your opinion is appreciated
Michael

Upvote 2

Read Answer Asked by Michael on February 21, 2024

• Fortis Inc. (FTS $79.92)
  • $79.92 P/E (TTM): 22.33X Cap: $40.16B
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Q: Following up on my previous question, could you please rank CEG, NPI and CSIQ with the others you mentioned before?

“ I am contemplating replacing Fortis with a greener utility. I already own BEP. What are your best suggestions please in Canada and the US and their relative risk rankings.

Answer:
We do like FTS; for other suggestions, we would note: PPL, FE, SO, DTE, H, CU. We would rank these: NEE, SO, H, DTE, FE, CU, PPL”

Thank you again, Michael

Upvote 1

Read Answer Asked by Michael on February 21, 2024

• DTE Energy Company (DTE $149.57)
  • $149.57 P/E (TTM): 20.84X Cap: $30.68B
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• FirstEnergy Corp. (FE $51.16)
  • $51.16 P/E (TTM): 28.87X Cap: $29.56B
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• NextEra Energy Inc. (NEE $92.78)
  • $92.78 P/E (TTM): 27.78X Cap: $191.12B
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• PPL Corporation (PPL $38.51)
  • $38.51 P/E (TTM): 23.67X Cap: $28.60B
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• Southern Company (The) (SO $98.01)
  • $98.01 P/E (TTM): 24.56X Cap: $109.52B
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• Fortis Inc. (FTS $79.92)
  • $79.92 P/E (TTM): 22.33X Cap: $40.16B
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• Canadian Utilities Limited Class A Non-Voting Shares (CU $48.83)
  • $48.83 P/E (TTM): 127.5X Cap: $13.28B
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Q: Hi,

I am contemplating replacing Fortis with a greener utility. I already own BEP. What are your best suggestions please in Canada and the US and their relative risk rankings. Thank you, Michael

Upvote 5

Read Answer Asked by Michael on February 19, 2024

• Brookfield Renewable Partners L.P. (BEP.UN $41.47)
  • $41.47 Cap: $28.20B
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• Hydro One Limited (H $60.09)
  • $60.09 P/E (TTM): 27.07X Cap: $35.56B
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Q: For a safe dividend and same growth for longer term hold, which would be a better stock?

Upvote 9

Read Answer Asked by nick on February 16, 2024

• TC Energy Corporation (TRP $87.50)
  • $87.50 P/E (TTM): 26.63X Cap: $86.09B
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Q: What did you think about their earnings?

I bought a small position around $46. Does it make sense to add? This will be a long term hold.

Upvote 2

Read Answer Asked by Ed on February 16, 2024

• Cenovus Energy Inc. (CVE $31.85)
  • $31.85 P/E (TTM): 14.97X Cap: $60.64B
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Q: Your thoughts on CVE's latest Q, please.

Upvote 4

Read Answer Asked by basil on February 16, 2024

• Chevron Corporation (CVX $196.82)
  • $196.82 P/E (TTM): 28.93X Cap: $393.03B
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• Marathon Petroleum Corporation (MPC $226.18)
  • $226.18 P/E (TTM): 17.15X Cap: $67.91B
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• Occidental Petroleum Corporation (OXY $57.88)
  • $57.88 P/E (TTM): 34.52X Cap: $57.60B
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• Suncor Energy Inc. (SU $81.83)
  • $81.83 P/E (TTM): 16.28X Cap: $96.68B
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• Imperial Oil Limited (IMO $165.54)
  • $165.54 P/E (TTM): 20.87X Cap: $80.07B
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• Tourmaline Oil Corp. (TOU $67.09)
  • $67.09 P/E (TTM): 90.26X Cap: $25.80B
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Q: Dear Peter et al:

Can you give me the names of 3 companies each that fulfill these criteria. I tried to "curate" the list by myself by going through 6 months worth of questions on Energy sector but really couldn't compile a decent selection as the questions exhibited significant variance.

Question # 1.

Mid cap oils (not gas)

Good to great free cash flow

FCF well directed to share buy backs, debt reduction and dividend enhancement.

Solid management
(I know this is subjective but I know that you know the players well!)

Showing good momentum and growth prospects.
You can include a small cap if you think it i soon going to be a mid cap.

Question # 2.

Same criteria but in Large cap oils.

Many thanks.

Upvote 6

Read Answer Asked by Savalai on February 16, 2024

• Peyto Exploration & Development Corp. (PEY $28.98)
  • $28.98 P/E (TTM): 15.23X Cap: $5.82B
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Q: On Jan. 22 you wrote, "The 12-month payout ratio is 28%, and PEY is in good financial shape." On Feb. 14 you wrote, "BUT...its nine-month 2023 payout ratio was 101%. Its balance sheet is OK."

I am confused by these seemingly contradictory statements. Can you please clarify regarding the payout ratio and the health of the balance sheet?

It seems as if I am a bit of a sucker for high yields and have been burned by Birchcliff in 2023 (though still a holder), and do not want to suffer the same fate with my recent purchase of Peyto.

Thank you as always for your expertise.

Upvote 4

Read Answer Asked by Richard on February 15, 2024

• ARC Resources Ltd. (ARX $27.57)
  • $27.57 P/E (TTM): 6.68X Cap: $15.82B
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• Tourmaline Oil Corp. (TOU $67.09)
  • $67.09 P/E (TTM): 90.26X Cap: $25.80B
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Q: Hi group what do you think about loading up on Natural gas producers (assuming the changes in being able to export LNG to Europe will drive much higher top line growth? I like and own... ARX + TOU what do you think? please list in order of preference ... 6 stocks that will or should benefit from the changes in LNG/ when would you expect the change to occur is it late this year or? Thanks

Upvote 7

Read Answer Asked by Terence on February 14, 2024

• Whitecap Resources Inc. (WCP $14.32)
  • $14.32 P/E (TTM): 13.73X Cap: $17.36B
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• Crescent Point Energy Corporation (Canada) (CPG)
  • P/E (TTM): 12.52X Cap: $5.39B
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Q: I would like your opinion. Since the market cap is similar which of these 2 companies(CPG, WCP) would you add to a portfolio and why. Thanks

Upvote 5

Read Answer Asked by jeffrey on February 14, 2024

• Peyto Exploration & Development Corp. (PEY $28.98)
  • $28.98 P/E (TTM): 15.23X Cap: $5.82B
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Q: With Nat Gas around $1.70, I'm wondering about the sustainability PEY's dividend? The stock seems to be holding up relatively well so I'm wondering if this is a opportunity to add to my position.

Upvote 2

Read Answer Asked by David on February 14, 2024

• Total Energy Services Inc. (TOT $20.31)
  • $20.31 P/E (TTM): 12.04X Cap: $721M
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Q: Hello,

Total has nearly no debt, have solid revenue growth, FCF yield of 16.7% F24 (37% F25) and have proved that they can make astute acquisitions.

Is there anything not to like with this company other than being a small cap and economically sensitive to the price of oil?

What is your opinion?

Upvote 1

Read Answer Asked by James on February 13, 2024