Investment Q&A

Q: Canadian Natural Gas producers seem wildly undervalued (to me anyway...) Checking my thesis here: Natural Gas netbacks are showing 40% increases over last year, and 2020 was almost 80% higher than 2019. Carbon sequestration makes maximum sense as an alternative revenue stream, and it appears at least one company (AAV) is doing just that. Valuation multiples remain very low (which is fine if one is going to invest) but it remains puzzling to me. Am I missing something? Or are all hydrocarbon stocks being re-rated (lower) due to ESG concerns? Are O&G stocks the new "Tobacco" stocks (this reference may dates me somewhat...) Any high level thoughts here to help me in decision making?

Q: The above stocks had good upward movement on Friday and wondering if was in response to aav report on carbon neutral technology ? Your thoughts for the future of this for aav and the natural gas industry? aav a buy?

Q: assuming current NG prices which of the above would do best. please add more stocks that might fit the theme.
thanks
Yossi

Q: It appears that natural gas is the coming into favor over oil in Western canada. ie power plants in Alta and the lng pipeline to Kitimat. Your thoughts on the stocks that will have upside in this sector. Arx, bir, aav, key, tou, aav, come to mind. Your thoughts

Q: On the supply side, dry gas prices are low and drilling activity has been scaled way back (storage is full to the brim).

On the demand side, the potential for a cold winter on the coasts, increased adoption of EV, conversion of coal to gas, vaccine driven Covid economic recovery, etc.

It looks like there's potential for a pinch in the market on the price of gas. If that was the case (I'd like to hear your thoughts on that), what companies would see the most positive response in share price?

Q: I own all of the above. Natural gas seems to be in favour at the moment and getting a nod for the future by a number of analysts. Which of these three has the best upside ? Thanks

Q: What would be your top 3 natural gas picks and why?

Q: Could you please comment on Advantage Oil and Gas’ recent quarter and your opinion moving forward.

Thank you in adavance

Q: Hi Ryan and Peter,

I have held PNE for years and years and have a cost base of $1+. I lost so much money on it that I just sort of tucked it away. Now BMO turns bullish on nat gas, Andrew McCreath says dry gas is the best and PNE has it in spades. Now today the stock is up +20%!

On one hand, it has high debt and they have never turned a profit. On the other, there is large insider ownership and they are still buying.

What is your outlook for the sector? How does this dry gas and your nat gas outlook effect PNE’s projected earnings? Would you average down here?

I was also too chicken to buy birchcliff at 60 cents but should I now get in on this space either averaging down, going with a new company or staying away all together?

Thanks guys! Keep up the great work.

Q: These three companies have appreciated during the last week. Natural gas prices are rising. Please explain the reason for the increase and future outlook. Which of the three in order would you purchase and why? Thanks

Q: With respect to the above companies, I would like to have your opinion on their potential, and whether you see any imminent issues with respect to debt levels. Please deduct credits as necessary.

Thanks

Q: Citing a growing liquids production, analysts have one year targets ranging from $3.50 to $6.50. A double, and possibly a four bagger. But the market doesn't see it, as stock continues to crawl along at 52 week lows. What have the analysts missed?i

Q: Do you feel Advantage is a hold or a buy? Thanks!

Q: Hi Guys,
I submitted this question last week so not sure if it didn't go through or just got lost in the shuffle. The question is as follows: I am concerned about the oil and gas industry going into a prolonged down pricing environment. Can you rank these companies in terms of balance sheet strength and their ability to withstand a prolonged downturn? Can you also speak on if any of these would be in significant financial trouble (e.g. - bankruptcy) over a prolonged downturn?
Thanks,
Dean

Q: Hi, can you give your opinion on AAV?

Thank you!

Q: As all eyes and ears are patiently waiting for the Canadian LNG FID announcement, how would you rate for a 3-5 years investment the following O&G and Infrastructure players in this strategic LNG play;
A) Rate from best to worst small & medium sized gas and liquids players namely AAV, ARX, BIR, CR, KEL, PONY and TOU or other O&G company you would suggest

B) Critical pipeline and midstream player benefiting from this huge NG and condensate liquids volume surge TRP, ENB, PPL KEY or others you would suggest

Jean Yves

Q: Dear sirs,
Is AAV worth holding/buying at these levels? Cost base is $9.
With thanks,
Brad

Q: Can you please help prioritize these energy stocks I am considering. Thanks.

Q: both companies have large production increases in relatively near future, very low production cost, no dividends, and are by my estimate very cheap. Which would you prefer for the next 2 - 3 years??

Q: your comments on aav and prospects for the future of natural gas