Canadian Natural Rsrcs (CNQ.TO)

Which is your favourite large Canadian heavy oil producer? His favourite is Canadian Natural Resources because he thinks it is at the top of the Americans’ “Buy List”. The excess cash flow they are going to generate over the next 10 years is equal to the current Enterprise Value. He is bullish on heavy oil. He feels that Keystone will get approved.

Sold her holdings last year because of her concerns on the widening differential of Canadian crude versus WTI. This company was very vulnerable to the price differential. Differential has now narrowed somewhat. Before re-entering this stock, she would want more clarity on how they were going to move their crude from Canada into the US.

This is one of the companies that has been more conservative on their payouts to their investors. Have a huge resource potential. Catalyst for them is heavy oil pricing improving, which is why it has been weak over the last 1.5-2 years. If there is some positive news on Keystone, his view is that all heavy oil producer stocks will be up in mid-single digits. Doesn’t own it because of the lower dividend payout. Yield of 1.65%. (See Top Picks.)

Diversified globally with assets in West Africa, UK North Sea as well as in the oil sands in Canada. They have natural gas exposure. Continues to chug along nicely. Sees prices closer to the $40’s.

There is no CEO. Doesn’t concern him. He has owned this in the past.

(Market Call Minute) Bullish on heavy oil. Coming off 28 day turnaround.

They have been increasing their dividends, but historically have not given out large dividends because they've deployed it, with the oil sands product. He likes CNQ, it's trading at a discount, and when the keystone pipeline goes through the discount will narrow. CNQ also deals with natural gas which has been down for about 5 years now, and drilling has slowed in the US. Over time the prices will normalize which will also help.

Have owned for a few years. Is one of the highest costs producers of oil in the world. Can only be profitable if oil prices stay at the price they are now. Second problem is transportation, which has become much more prohibitive over the last 5 years. If we see natural gas replacing diesel, and shale oil being produced in the US, then CNQ is not in a good place.

(Down 6.21) She is purchasing more. Still believes it will do well.

(Top Pick May 10/12, Down 3.31%) Sold into the fall. He was worried about the western Canadian oil price. He almost bought back in.

(Market Call Minute) They can increase the dividend.

Fantastic Canadian oil company. Stock is where it is because of oil and gas prices concerns on where they will be over the next year. In his opinion this is the best run oil/gas company. Great investment.

(A Top Pick March 13/12. Down 13.3%.) You just have to be patient.

Likes natural gas option. Largest land holder in Montney. A good time to buy it. Good prospects for dividend increases and share buy backs.

(A Top Pick April 10/12. Up 3.81%.) Sold her holdings at $28 in November. The oil sands could be an area she goes back to. She wants to see the infrastructure being put in place and sees how that plays out.