Investment Q&A

Q: I don't understand. A recent 5i answer on AQN stated:
"On an operating cash flow basis, the dividend was still coverered in the 12 months to Sept 30."
As I look at the Balance & Income Sheets as of Q3:
Working capital is $-579,890,000
Net income for the 3 quarters this year is $-182,000,000.

AQN will payout $0.92 per share in dividends for the year. They've already committed to $0.22 for Q4
676 million shares x $0.92 = $616,400,000 payable in dividends for the 2022 year ($154,000,000 to be paid in Q4)

Somehow, somewhere isn't it true that the dividend payments must be impacting that negative working capital, the negative net income, the increasing debt amount and increasing interest to service the debt? In essence, aren't the dividends coming from borrowing, whether directly or indirectly?

Thanks, always appreciate 5i's perspective.

Q: Could I have your comments on this company. Would you consider it a buy? Thanks

Q: Hi Peter, Ryan, and Team,

For this year's TFSA, and being underrepresented in energy, please rank CNQ, SU, and TOU. Any other suggestions would be welcome.

Thanks in advance.

Q: Hello Folks:

We have been fortunate enough to have made a sizable portfolio shift into the oil and gas sector; except for TVE we have been well satisfied.

Do you think this sector can hold value in spite of reduced oil prices, or would it be prudent to remove some money off the table toward other sectors? Currently our holdings are 20-25% oil and gas. In what other areas do you have some confidence?

We really do appreciate your good service!!!
brian

Q: which company is the safest buy in your opinion TRA OR ENB ?

Q: Hello Team.. My question is on TRP which has a 48% ownership position of Bruce power station. Could this be considered a risky asset considering the high cost of future repairs and the potential liability of an accident given its advanced age. I have considered TRP as core holding with a great dividend but the nuclear side of the equation concerns me. I have a strongly positive bias towards nuclear energy so your perspective would be appreciated. Thanks. Gary

Q: Hi Peter,
I have a general question about Canadian energy markets. Yesterday, January 3rd Canadian energy names (oil and gas) tanked to the tune of between 6 and 12%. WTI oil and natural gas were down a bit, but not to the extent the stock prices fell. In your opinion, was there any news that would precipitate such a price drop. Or is it possible that the big players decided to re-position on the first trading day of the year? Much appreciate your views!

Q: I know these companies vary a lot on the risk spectrum (CNQ likely being the safest and PXT the riskiest due to geopolitical risk), but if oil prices stay relatively high for the next couple years (let's say averaging at least $70), how would you rank the following stocks at current prices for potential total return: CNQ, TVE, IPCO, PXT?

Q: May I have your analysis and opinion on PBF Energy?
With appreciation,
Ed

Q: Peter; It seems to me that the “ generalists” exited the Canadian energy sector today. Large volume and down. Do you see any overall factor for the decline? Thanks.
Rod

Q: BEPC is down 18.54% and BIPC is down only 7.73% over the past year. This is quite a difference given that they are both utilities. Can you tell me the difference between them in terms of what they invest in, safety, and expected growth? If you were to add to one, which one would it be, if any?
thanks

Q: I have 6000 shares bought around $23.00 of tpz. Div. is $1.20 a year. Key. recently bought major purchase from Plains and upgraded to buy. Dividend is $1.92 a year. Your opinion of both companies please. At current prices would you sell tpz and buy key.?

Q: What do you think of tou. is it a buy now or wait a while. Do you think the future looks good.

Q: hi folks:

what am i missing here?

time and again, when a dividend company comes under pressure (in this case AQN) all the wags talk about 'soaring and unsustainable dividends'

this clip from today:

Yes – Algonquin’s juicy dividend. The drop in share price has caused Algonquin’s dividend to soar. As of the time of writing, the stock is down over 50% year to date, while the dividend yield has swelled to 10.93%.

That’s an insane, if not unsustainable, dividend yield. Even if Algonquin were to slash its dividend in half, it would still offer a very competitive yield, and still one of the better-paying options on the market.


the dividend $ has NOT changed; only the yield as a % of share price has

either the company can support the dividend or it cannot

my point: a dividend is a reflection of the strength of the balance sheet and the companies cashflow

that the price gets knocked in half is irrelevant to the dividend paid

UNLESS said bal/sht and cashflow will no longer support the divy at that amount

(yes, i understand that the current price reflects people's belief that the balance sheet cannot continue this level of dividend)

so, are these type clips just sensationalizing or am i completely wrong?

again.........

thx

happy new year team

Q: Hi, Toumaline stock has come under pressure, over past 2 weeks. Natural Gas prices have also been trending lower for some time, with today's reports about warmer weather forecasts for USA and Europe, through January, 2023. What is your outlook on NG and LNG prices and supply/demand situation, for 2023 and beyond ? Do you believe that despite near term headwinds, stock could continue to outperform and should be part of ownership, in Energy sector ? Thank You

Q: Peter; Every week we see oil inventory has risen or fallen - is there a US LNG storage level also announced- with 200million in the US and likely a pro rata number in Canada in freezing mode- surely the level would be dropping yet NG is up barely .12 cents today. What more could we ask for to support NG stocks ? Spring IS coming when demand will drop- would you be trimming or selling gas stocks? Thank and all the best to you and staff - have a safe,healthy and happy. Holidays. Thanks
Rod

Q: Hi there,

Looking insight on the two oil companies Athabasca and Surge. What is forecast on 2023 on the cash flow. Will 2023 be a positive on both companies with record cash flow, potential buy share pay backs and dividends. What is your rating on the two companies. Thank you.

Q: Hi, What can you tell me about TNZ. Is it a possible investment op?

Q: i own vermilion, cnq, erf, and gear . gear has an 11% yield, no debt, i cant resist.
i want to add one more small to mid cap energy name canadian. i know you like tamarack but it is a weak performer. can you recommend another for growth. dave

Q: The company’s share price has been languishing behind the sector for the last few months. Any particular reasons why? Expectations for 2023? Best of the New Year to all a 5i.