Canadian Natural Rsrcs (CNQ.TO)

A Top 10 holding. Suits all portfolios. Close to a 5% dividend, growing at north of 20%. Committed to returning all free cashflow to investors. High quality, very well managed. If he'd been allowed, he'd have used it as a Top Pick again today.

Oil was underpriced, but geopolitical risk and a warmer economy have helped raise prices. Oil is breaking out. CNQ already has. You need energy in your portfolio.

The question was on his preference re Canadian Natural Resources or TC Energy. TRP has a lot of debt and it's hard to build a pipeline. CNQ has driven down debt. It will sit at a lower level of around $10 billion and return excess money to shareholders.

Two different companies. CPX is a utility, with better income distribution and lower growth. CNQ has a nice dividend, but with better growth. What are you looking for? For income, pick CPX. For growth, pick CNQ.

At current levels, he'd stick with CPX for the dividend and potential upside. More potential for upside growth, less potential for downside risk.

Large-cap oil will continue to do well. Using capital in shareholder-friendly ways by increasing dividend, paying down debt, and buying back shares. Believes in buying Canadian oil/gas.

They've been shooting the lights out lately. He's very bullish energy stock. He picked up quality names like this and Cenovus when oil fell below $70. WCS prices will narrow the gap with WTI when the Transmountain pipeline kicks into full gear in Q2.

Very string company. Excellent earnings in 2023. Very strong management team. Debt levels falling - have pledged 75-100% return of cash flow to investors. Strong oil prices very good for business. Expecting higher dividends going forward. Oil sands asset very long life that doesn't require exploration costs. Overall a very great business. 

Very good operations. High quality. Well managed. Results can sometimes be volatile due to cyclicality. Impressive free cashflow. Price of energy should remain high due to China reopening plus geopolitical events. Paying down debt. Dividend and buybacks. Fundamentals are strong, but at all-time high. Try SU instead. Impressive yield around 4.5%.

Broke out from the old lid, consolidating. Not zooming for the moon, but the pattern is that it's not breaking down. If oil moves as he thinks it will between now and May/June, this will probably be one of the leaders, as it's been one of the leaders in a rather crummy market for oil stocks. Yield is 4.52%.

They grow by buying companies, but not doing that now. It's a steady producer. They've raised their dividend 23 years in a row, and have a reserve life index of 32 years, so they can take their time. They will mee their debt target and return capital to shareholders. CNQ holds up well even if the oil price declines.

Excellent management team with very strong track record of capital allocation. Long dates assets give investors lots of opportunities. Energy demand will continue with rise in demand for oil and gas. Currently no alternative to oil and gas - will result in high profits. 

Not always a 1:1 tracking with the commodity price. Sometimes investor appetite for a name. Great name. Pricey compared to peers. He'd favour TOU or SU for its valuation. Oil will have its day, and CNQ will be fine. Don't worry.

The recent pullback has been largely due to the pressure in energy prices. The company itself has not had any materially negative news. Energy prices can be volatile, but we think fundamentally CNQ is still a great operator with disciplined capital allocation. CNQ is trading at 10.3x Forward P/E, and generating healthy cash flow, which is being paid out as special dividends and buybacks. We would be okay adding some here.
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Very well run company with excellent assets. Attractively priced at 10x cash flow per share. 

A remarkable success story in global oil & gas. The best-run in this business. That's why the stock has done well. Will continue to grow, though at a slower rate than the past 40 years. Are also a major natural gas producer. They buy companies at barn-sale prices with their healthy balance sheet.