Opinions David Baskin
Canadian Natural RsrcsCNQ.TOCOMMENTSep 22, 2014
David BaskinStock price when the opinion was issued
As of Oct 30, 2026. Market Open.
You might be interested:
It's held up so well, because they sell their supply as synthetic crude oil, which sells at a premium to WTI, because it produces diesel. There's a diesel shortage now because of the US-Iran war. Long term, CNQ has the reserves, but they just need the access to markets. You can't predict the war, which has gone on longer than expected, or where oil prices will go. Anyway, you earn a good free cash flow yield.
Both are good with similar performance the past year. You can hold onto CNQ and not buy CVE, long term. The two stocks move in tandem.
Tim Regan
Pure-play oil and natural gas producer. Longer term, will trade pretty much in line with price of oil. Good dividend, so it's in his income fund. Performance over 12 months will be determined by Iran war.
Jamie Murray He sold some of it in the first run-up. You can hold but he would sell if oil still goes up - not sustainable at these levels. If oil goes down he would buy more. It is one of the best companies and is very good at acquiring other companies. It has increased its dividend and free cash flow.
Paul Harris, CFA
Hasn't been adding recently, as other stocks in the sector look more interesting. Core, dominant player. Low-cost, long-life assets. With the war in Iran, international investors are looking at Canada and its energy again.
For him, SHEL purchase of ARX was a turning point. Going to see more of that.
John ZechnerWhen asked to compare these four large companies if the price of oil drops, he felt that CNQ is a phenomenal company that's hard to beat. Suncor has been a turnaround story for the past two years. The quarterly reports have been much better. Rich Kruger is moving on to be the Executive Chair. If the price of oil does drop Imperial might be the best defensive play.
Editor's Note; For Cenovus, please refer to his previous answer.
Yes, he'd put new $$ in today. Buying stocks at 52-week highs isn't necessarily bad for your wealth (you'll actually do better than consistently buying at 52-week lows). Possible (but he can't say for sure) to retrace to mid-$50s if Iran war were to end.
On normalized oil prices, high single-digit FCF yield. Low-cost operator, decent production growth, strong balance sheet. Excellent capital allocation.
Martin Cobb, ASIP
Oil reserves in a safe haven. Well run. If peace breaks out in the Middle East, all the energy names could retrace somewhat; if conflict escalates, then oil will run and you should take profits along the way.
If you're looking at a 3-10 year investment, by all means buy some energy here. But if you're looking for a 3-6 month trade, you have to be careful with these politically charged components of the market.
He can't tell you where the price of oil is going. He does know that demand continues to increase. One of the best capital allocators in the O&G space. Decades and decades of reserves. Increased dividend for 25-26 consecutive years.
For a generalist, long-term investor, trust the management of the quality leader. When oil turns down, this name will hold up better. If there was a pullback for no good reason, he'd buy more. Be patient and wait for your opportunity.
Barry Schwartz
For the 1st time in decades, the US is in a net energy surplus, they are producing more energy than they are using. He doesn’t believe this is a game changer for the oil sands. This oil will get produced and will find its way to market. Whether that market is in Asia or the US, he doesn’t know. Every year this company gets more efficient in their production, and as they ramp and scale up, the cost per barrel of the refining process goes down and down. Because they are on an inexhaustible reserve with no exploration costs, they have a real advantage over traditional production/exploration companies. He is a believer in this.