Investment Q&A

Q: I noticed recently Fairfax had declared ownership of a 15-20 % stake in Ensign.

Not sure what their intentions are if anything other than purchase of a passive and undervalued investment. What are your thots on this ownership stake by Fairfax and do you see any likelihood of them purchasing a bigger piece or all of this company?

There has not been a lot of M&A in the Cdn Oil Sector amongst the Mid Cap Producers and Drillers lately. Do you see 2025 bringing any increase in M&A in this group amongst Mid Cap Producers and Service CO’s?

Q: Hi 5i, given there is a high probability of "drill baby drill", what would be your top Canadian Oil & Gas service companies with exposure to the US? Thx.

Q: If President Trump is returned to office on November 5th, and given his promise to unleash American oil and gas production, would energy service stocks experience a significant tail wind. If yes, please provide your top suggestions, both U.S. and Canadian. Thanks

Q: I was watching BNN today (sept 9th) and on market call the guest had this as one of their picks. The guest mentioned that ESI is paying off 600M in debt using free cashflow which they are apparently halfway through doing with a target date of to complete this end of next year. The guest was making the case that after this debt is paid that free cashflow the div could be increased and the company could do a 22% repurchase of the stock outstanding. What is the management of this firm like do they have a track record of success? What do you think of the thesis put forward by this guest. Is this company worth a flyer?

Thanks

Q: Looking for updates on these three. As usual would think the possibility of higher returns comes with more risk…how would you rank them for total return 3-5 years?

Q: In an answer to a recent question on Market Call on Ensign Energy Services the guest stated that ESI will have free cash flow of $200 million this year which works out to be half of its market cap of about $400 million. This seems to be a pretty good situation but I feel that I must be missing something here. What is the debt and is it a concern, Is new drilling likely to gain traction over the next couple of years. What do insiders hold and are they buying. Do you have any ideas on why this stock has not really done much over the last few years.. Thanks.

Q: Based on their last earning how do you see this companis performance and outlook.

Q: I'm down 50%+ in these positions in a registered account with a 5-7 year time horizon. Which of these would you suggest I sell and which would you consider holds? Please offer better alternatives in the same sectors for the sells. thanks!

Q: how would rank the above 3 companies and can you give a reason. dave

Q: I’m wanting to start small positions in two of the above. Will you please advise which two you prefer. Many thanks as always for your knowledge. Rob

Q: what are your view of this stock today?

Q: Can I have an update on this company and whether it will survive.Thanks

Q: Does ESI pay a dividend? Did Murray Edwards take a recent position in this company?

Q: Could I have your take on the share deal/swop contracts between Fairfax and Ensign please. Has FFH made a commitment to ESI? Thanks

Q: i was listening to bloomberg this past week. And everyone has their picks. I trust this team much more than any one on there. They gave CNE an A and ESI a B+. What would be your thoughts on these 2 companies. THANKS again

Q: Which are the 5 "most likely to go bankrupt" oil and gas companies?

Q: I have taken a bath with owning ESI.CA. Is there any concern that the company will be delisted from the TSX?

Q: Hello. What are your thoughts on Ensign Energy Services (ESI.T)? They recently had a dividend reduction after engaging in the purchase of a competitor (Trinidad Drilling). The stock has collapsed and continues on a downward spiral. Is this a good long-term (5 yrs+) investment?
I am down considerably right now, should I take my losses or average down right now? Thank you.

Q: Your analysis please, do you think it will recover in 2020.
Dividend safety and is it worthy as a contrarian investment.
If not what driller would you be interested in ?
Thanks as always
Gary

Q: Good morning
As retirees, and still with a longer-term horizon, my wife and I own (and like) Suncor (integrated), Prairie Sky (no debt) and Peyto (low cost producer) for minimal risk; second, dividend income, and third, capital growth. Oil & Gas is 4% of our diversified portfolio. We plan to keep Suncor. I am considering Freehold Royalty, Tourmaline, and Ensign Energy Services as possible replacements for PSK and PEY.
Q1: Do you feel the stock price declines in the Canadian oil and gas sector represent investor capitulation?
Q2: I would appreciate your comments on the 3 stocks being considered. Would any of TOU, FRU or ESI better meet our investment objectives, compared to our current holdings, PSK and PEY?
Thank you for your advice on this.
Edward