Investment Q&A

Q: Hi Peter,

Could you please rank your favourite few Cdn listed oil equities as of today?

If you were to hold two names, would you go with the top two or would you do something else (eg one blue chip and one smaller growth player)?

Charge questions as required. Many thanks!

Q: I am on the sidelines right now. If the market drops significantly I will buy back in. If it does drop enough for me, which 6 oil and gas stocks would you buy? Majors, micro, US, Canadian. It does not matter to me.

Q: what are the current annual percentages of dividend, debt and free cash flow yield for each of these companies. use as many question credits as needed

Q: What are your top 3-5 of picks in small/mid cap Canadian O&G stocks? I'd also appreciate your thoughts on holding periods.

(Eric Nuttal seems to think they will do well for quite a while yet, though he seems to always be bullish - or maybe just talks his book...)

Q: Columbian Government has proposed a tax reform bill that seeks approval from lawmakers.

Part of the bill asks for 10% tax on oil exports at price over $48/barrel as well as removing the tax deduction for Royalty payments.

Are you able to offer a reasonable opinion on how heavy a financial hit this may have on Parex? If not please just ignore question.

Q: The reason parex was down is the new govts new tax on resource companies will impact earnings dave

Q: I can't figure out why parex (PXT) has dropped over 10% today. Their recent quarterly was excellent, they are buying back shares like crazy, they have several high impact wells coming on stream in H2, and they started giving a very nice dividend. What am I missing?

Q: Parex Resources or Tamarack Valley? Which would you choose right now. I already own Whitecap and Tourmaline.
Thanks

Q: Hello 5i team:
Without editorializing or getting too “grumpy old man”, it seems we have a productivity issue in Canada, and now a labour force participation and perhaps also a work ethic issue. Every employer where I reside is bemoaning “people problems”.
I’m wondering if you have done any work on identifying companies that generate high free cash flow with relatively fewer employees? I know you have mentioned ATA in the past as maybe a way to play the theme, but I’m thinking of companies that are already there because of the nature of their business.
Thanks

Q: I own each of these companies in my RSP and have done very well on all three over the past year. A couple of months ago, I trimmed my positions in CNQ and SU as they had more than doubled. With the recent sector pull back, I'm now considering selling some Parex and redirecting the proceeds to Suncor.
It seems Suncor currently has a number of positive catalysts which may result in it outperforming Parex over the next couple of years. Both companies have a similar beta and yield, with SU having much more diversified operations.
Exclusive of position weightings, your thoughts on this strategy please.
Thanks, Rick

Q: Looks like the election in Columbia send PXT for a nosedive. Peter, do you think the 10% pullback represents a buying opportunity for this stock? Also, do you see the general pullback in energy shares as a buying opportunity?

Thanks for your great service.

David

Q: Hello 5i,

Could I get your future outlook on PXT given the recent election of a leftest government in Columbia. Market is very negative on the stock today (-10% as of writing).

Given that approx. 30% of Columbia's government revenues come from the taxation of Oil, I find it hard to believe that the new government would do anything to endanger it's revenue stream when it will be sorely need to pay for election promises made. I think the market is overreacting on this one.

Your thoughts would be appreciated.

Thank you.

Q: Which Canadian energy companies have the most sustainable dividends with the best prospects for dividend increases? Might they hold up in a slow growth stagflationary world?

Q: Can you rank the above "cheap" Canadian Oil and Gas companies according to 12 month growth potential with the assumption of >$80 WTI and >$7 MMBtu Nat Gas (NYMEX) price ?

Q: Good morning

Would you have some insight or thoughts on what the hedges that CPG and PXT have in place that will impact revenues in the first quarter, and beyond?

Thanks

Q: I sold out of all my PXT around $30 since it had a nice run but more impotantly the in coming president in Columbia is very anti-oil even though his name is Petro (kind of ironic). I have not been able to find any recent news as to whether the new president is going to follow through an policies that are not extraction industry friendly (Even though they are one of the few bright spots in the world economy in 2022). Is there anything on your radar about PXT and the Columbia geopolitical situation? I like PXT because of its net cash on the balance sheet and that is profitable even with WTI in the mid 40"s but government intervention by Latin American governments can destroy a lot of share holder value. What's your take on PXT?

Q: I have been considering acquiring three of the above companies. I what order would you acquire for a balanced portfolio looking for combination of growth and income.

Q: Do you currently prefer oil companies vs gas companies for growth ? Please give me your choices in your favorite sector.
Many thanks for your advice.
Ian

Q: Hello 5i,

My overall portfolio weighting in energy has grown to 20.49% and I am looking to trim and/or get out of a position in the next few weeks/months.

I currently hold SU 9.62%, TOU 4.74%, PXT 1.11%, KEY 1.07%, ENB 3.95%.

Leaning towards selling my entire position on PXT and some of SU but would appreciate your opinion. I still have a high conviction in the energy sector but I am uncomfortable with my overall weighting in it. Would greatly appreciate your thoughts and how you would rank each stock to each other.

I am also underweight in industrial/healthcare/utilities and looking to purchase a stock in those sectors with whatever i sell in energy. Would appreciate a recommendation in each of those sectors.

Please deduct credits for above as you see fit and thank you again for all that you do.

Q: If you have to choose one of those three names to represent an entry into the O&G sector, which one would be your pick? Thanks.