Canadian Natural Rsrcs (CNQ.TO)

Energy has had a good run and the caller is probably thinking right in dialing back a bit. Likes this. This is Canada’s largest integrated oil/gas producer. Even though it has a good growth profile, it is trading a bit cheap at this stage.

There is a chance of a better entry point so he would be a little patient. Tends to react in a volatile sort of way to price changes in energy.

Strong run from the start of the seasonal period. Actually picked up as early as January. But we broke below the trend line now. He doesn’t see a lot of upside in oil stocks.

Oil is at $100 a barrel, which he doesn’t understand as the world is swimming in oil. Looking at a company like this and when the commodity is stretched, he wants to make sure the company has a lot more going for it because he doesn’t really like the underlying commodity. The company is doing some good things and he feels the stock price is a little stretched here. There are better things to buy if you are looking at the oil patch and looking for a bigger dividend.

Having a great year. He owns Suncor (SU-T). Oil is probably right where it should be right now. Might be a little elevated with what is going on in Russia, but he doesn’t expect oil to go a lot higher.

Stock vs. Stock: CPG or CNQ. He doesn’t like saying one stock is better than the other. There is that chatter in the market place that they may not be able to cover the dividend.

They are now benefiting from investments they made along the way. Wonderful unexploited Nat Gas assets. Differentials are narrowing and it means better profits for this one. Could be a great core holding in a portfolio.

Stock vs. Stock: CVE, CNQ or SU for an oil sands play. Is the only pure play oil sands play of the three. This is the one you have to go with if you want oil sands.

One of the few large cap stocks he owns. Likes the free cash flow generating ability of their natural gas assets. They recently did an acquisition that has fee simple lands, as opposed to crown lands. The own the mineral rights under the ground. They could let another company operate on it and get the royalty income from their operations right off the top. You could see a couple of bucks from this.

Thinks it will continue to do well because it is still trading at a substantial discount to peers. Thinks their cash flow consensus is actually too low because of the Nat Gas assets they hold.

There is an upward arc line off of the upward trend that started in mid-2013. That is a movement that probably needs to be corrected a bit. He wouldn’t be surprised if this had a bit of a correction this summer. For the time being, you can stay with it because there is no sign of it rounding over as yet.

Has done well. About a third Nat Gas and two thirds oil. Under $40 it would be a great buy for the long term.

There are a number of catalysts. 40% unhedged Natural Gas. One of the names that will benefit most from the differentials decreasing. XL would benefit them. High single digit growth profile can allow the dividend to continue to grow.

One of the more unique seniors. Tremendous oil sands base. They have an under exploited Nat Gas asset. A smart company has taken a contrarian view and gone for a Nat Gas leveraged asset.

Energy has come up considerably over the last month in his portfolios. He has been more focused on the midsize, more quickly growing producers, those that are using technology to rapidly add to reserves and production. Great balance sheet and they will have an opportunity to grow nicely going forward. Just made a couple of very nice acquisitions. Expecting accelerated dividend growth going forward.