Eric NuttallCanadian Natural RsrcsCNQ.TOSTRONG BUYMar 11, 2025

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.

Every oil stock is going up now. CNQ has broken out, though could pull back to its trendline. There's also seasonality. You could take profits.

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.

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.

More focused on gas. Over time, O&G sector should continue to improve. GOC has announced more focus on major projects in Canada, most likely involving another LNG facility to facilitate getting our gas to other markets. That would help this name.

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.

When 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.

One of the best in Canadian energy. It continues to do well. Fine valuation and it's stable. A great one.

He targets $50-60 oil over the next decade. He's bullish for an oil trade, but is very concerned oil stocks will fall back down to historic norms.

Is one of the better natural gas plays. 

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.

A conservative and integrated choice in the space.