Investment Q&A

Q: Hi Guys,

I'm looking at a couple of smaller oil and gas companies and wanted to get your thoughts. i3 Energy and Gear Energy. Both of them got into a little trouble this year when they implemented a unstainable dividend. Their dividends have been dropped to a sustainable level, but both of their share prices took a pretty good hit for that. However it looks like they have good cash flow, both are paying down debt, and they seem to have pretty good land packages. I was thinking with all the cash floating around the oil patch right now, both would be pretty good takeout targets. Curious on your thoughts and if they would be a good hold.

Thanks,

Q: Hi, I own Parex, Gear, Trican, Pason, Advantage and Prairiesky in small percentages for this sector . Collectively, I am about breakeven. I would like to consolidate into two or three holdings. Of these, what would be your preference? Overall total return is the objective.
I have also seen Terravest mentioned as a favourite compounder in the same sector in the Q&A, Is this a new entity or did they do a recent name change from a former company. Is this a more preferred name vs the others mentioned?

Cheers,
Steve

Q: Hi 5i,
In response to a question of mine and questions from others over the past few months you have pretty uniformly rated GXE a hold - partially I think on the premise that the damage has been done. I am holding and I'm content to continue for a while.
I wonder though - given its small size and present earnings of - $52M - is there enough money there to justify it continuing as a public company, especially one that is shoveling money out the door every month in the form of dividend payments?
In the past year (and possibly for longer)Twin Peaks Capital LLC has been buying up GXE shares pretty regularly, and today it owns 2.51% of the company (6.5 million shares worth $5.7 million at todays prices). Insiders have also been buying.
Why would a business like Twin Peaks Capital LLC buy so heavily into a little public company like GXE - how does it expect to get a return on its investment? Capital appreciation seems unlikely. Is it just cashing dividends, or might it be getting ready to take it over itself or, alternatively, might it be trying to ensure it has a large and therefore profitable position when someone else takes out GXE?
Thanks 5i - I look forward to a better understanding of what might be going on.
Peter

Q: How would you rank these? What is their free cash flow if any? Please advise whether they are buy, hold or sell rating..

Q: What are the prospects for Gear Energy considering the 50% dividend cut.

Q: Hi 5i
I own GXE in a TFSA and in the midst of today's bloodbath the value of my holding is down 45% from when I bought quite some time ago. There's not an overly significant amount of money involved and I can ride it out if that's the thing to do, but I would like to minimize my losses as effectively as possible.
With that in mind, what would you recommend I do - sell, hold or buy some more at the current depressed price, and why?
Thanks 5i, I look forward to your thoughts.
Peter

Q: What are your thoughts on the safety of GXE’s dividend?

Q: Good morning,

In this group can you tell me which one to keep, to hold, to sell and add at this moment.

Thank you

Marty

Q: Thoughts on switching out of Gear and into Headwater and how do their metrics compare? I also hold Tamarack.

Q: Please provide your thoughts on how you would rank POU against ENB, SU, TRP, TOU, GXE and PXT for growth, holding for more than 5 years?
Thank you,
Roger

Q: Good morning,

I currently hold FRU in my TFSA account and it is down approx 30%.

Q1. What is your outlook at this time of FRU and would this be a good entry point to purchase some additional shares?

I wish to purchase an energy stock for my TFSA and GXE is one under consideration given the relative safety of its high dividend and growth prospect should the price of oil go higher.

Q2. What are your thoughts and outlook of GXE at this time and do you have a better recommendation for a new position in my TFSA?

Thank you and I'll await your sage advice.

Q: I couldn't resist this dividend machine and picked it up in Dec'22. I know there's a lot of factors involved (oil prices/shareholder payouts/production costs/depletion/new plant & equipment etc.) but in the current environment it appears to me that they'll be cash flow positive enough to eliminate their meager debt this year and then some. Do you have any idea what the cash flow forecast is for Gear this year and how it is derived (i.e. various components)?
In summary, do you think a return of capital is likely?

Q: Can you please comment on today's earnings announcement. Is the dividend safe and would you consider the recent pull back to be a good entry point.

Thank you!

Q: Hi folks ... 2 questions:

I recently bought a 1/3 position in GXE. It's up 10% since. Is there any reason not to add another 1/3 at this time?

Is your current view on ATZ as positive as ever? Is this a good entry point?

Thanks for a great service.

David

Q: How would you rank these companies for growth, stability
and dividend security? I'm thinking to trim WCP and FRU
to add these others.

Thanks

Q: Hi 5i Team. Can o get your general thoughts on these companies and, specifically, the sustainability of their dividends? At what commodity price points do their respective dividends get dicey? Thank you!

Q: could you give an in-depth analyses of GXE please.The dividend looks very attractive.
Would you be a buyer here or could you mention some better candidates in the sector.
High yield stocks like GXE are they best in a TSFA account?

Q: looking to generate a little more income in my RIF with these three CDN O&G names. In your opinion, would a mix of all three achieve some benefit of diversification or does one of these stand out as a clear favourite to own for either safer income, growth or bothÉ

Q: Hi Could you please give me your thoughts on BAYTEX ENERGY CORP AND ARX-T I hold them both, should I sell BTE and buy GXE

Thanks

Q: Gear Energy has a juicy dividend of 11% but is it sustainable? And what are it's growth prospects overall.