Joanne A. Hruska, CFA Canadian Natural Rsrcs CNQ-T BUY Nov 14, 2018

He sold a little while ago, and here's why. Chart shows it moving up, and then it consolidated (which he's fine with). Old resistance became new support. Then all of a sudden it broke down. He gave it a couple of weeks, then sold.

Concerns about economy, sentiment around energy stocks is lower, oil prices are weak as well. He sold. Long-term, makes sense to own oil and energy. 200-day MA is flat, trending slightly down. Price now below 200-day. Down 26-27% from recent highs. Technicals don't look great. Yield is ~5.65%.

SU is the only true energy name in his portfolio.

Loves it as one of the biggest oil & gas producers. Strong mix of crude, nat gas, and synthetic oil. Production set to grow 12% in 2025. Counting on new Trans Mountain to boost profit. 9/10 on value, 8/10 on fundamentals. US tariffs are a risk, along with unpredictable oil prices.

Paying down debt, strong balance sheet. Chevron assets expected to add nicely to FCF profile. Solid pick for steady cashflow. Yield is 5.5%, reliable.

If she could make this a Top Pick again, she would. Very high conviction on its future. Premier oil company at a discounted price. One of the best management teams in the world. Premier assets and cost structure. Consistently good acquisitions at a good price that are accretive. Strong record of share buybacks and dividend increases.

Revenues are slightly down YOY, but that's a function of oil prices being down. Likes the 60/40 mix of gas to oil.

Core holding, along with SU and TOU. Of oil & gas, gas is probably the better bet right now with LNG coming onstream. Trump says a lot of things and, on the broken-clock theory, some of it may be accurate. But you can't just turn on the tap.

Considerable underinvestment in oil for a while, particularly in Canada. PM Carney is no particular friend of the sector. If onshoring of all this production comes back to America, they're going to have to power it somehow. And there won't be enough windmills, nuclear plants, or solar panels to do it.

The only oil stock he owns. Never cut its dividend. Low-cost producer, profitable at $40 oil, so oil has to fall a long way for it to not make money. Great free cashflow generator. Disciplined capital expenditures. Conservative, great, wonderful business.

Ottawa for the past 10 years hasn't given much clarity about exploration; the whole industry has been wondering what they can and cannot do. However, in this election, all parties are talking about using our natural resources, refine them here, then export them abroad. We need clarity to buy a stock like this. The dividend is high because they CNQ can't grow, a sit and wait situation where they're dying a slow death. He hopes regulatory clarity comes later this year. CNQ is the biggest and best of the group.

Sold off on concerns about Canada, what if another Liberal gets in, tariffs on energy, and exposure to the WCS differential. His fund has to be more sensitive to short-term moves, so he sold and harvested a decent tax loss. So you could sell and buy, say, CVE.

For most retail investors, it's a name you can just sit on. One of the deepest resource bases, rock-solid management team, yield is 6.1% (extremely sustainable). Usually it's defensive.

About 27% natural gas. Not sure exactly what their breakeven on oil price is, probably ~$52 or so. Oil's come down quite a bit on Saudi moves and global demand issues. Trades at a premium (7x) to peers (5x). Good production profile this year. Cashflow per share growth. Really good balance sheet, as is payout ratio.

If you think oil's going to $70-80, go ahead and buy. He's not so sure about that. Other places are easier to invest.

Is one of the best-managed companies in Canada. All oil stocks have pulled back, so this is an opportunity. Lots of growth potential through the Oil Sands. Pays a 5.76% dividend.