Paul Harris, CFA BP PLC BP-N BUY Jun 15, 2023

Sell shares and buy Canadian energy instead.
Conventional oil production falling.
Misguided investments in renewables.
Not a good long term investment.

One of the best performing major energy companies in the world.
Trades at cheaper price than other names in the sector.
Very good oil marketing & trading group.
Good capital allocation at company with share buybacks and debt reduction.
Expecting recovery of oil price going forward.

He likes the energy space since there is a tight supply. You need to see a breakout above recent highs before buying. He prefers Shell on the international scale. Pays a 3.3% dividend.

Large-cap oil will continue to do well. Using capital in shareholder-friendly ways. Lots of accidents over the years. Buying this takes on currency risk. Lots of great Canadian companies to own instead. He owns CNQ.

Depends on price of oil. Why buy foreign? Great oil companies in Canada like CNQ and SU, which do very well. Difficult environment in the face of renewables. Buying back shares, reducing debt, increasing dividend.

Case for energy is still there. Transitioning toward more renewable energy, low-carbon solutions. Long term, can make some sense. Oil price has recovered since pandemic days. Nice yield of 4.5%. In the space, his favourite name is SHEL. 

It's the cheapest oil company. Are buying back stock an are increasing the dividend, but they let their debt get too high. Then, oil prices softened. We likes the new CEO, though, and will announce a new strategy. He expects asset sales to reduce debt and eventually raise share prices.