Rob Sechan, Managing Partner, New Edge CapitalConocoPhillipsCOPBUYMay 31, 2024

For oil energy, pessimism on supply was really priced in on March 26. Since then, oil names have retraced. Oil is a significant portion of the economy, and that's why it causes inflation.

With oil prices coming down on the back of peace breaking out, the narrative and fund flows are going to be somewhat negative. Capital will move to other areas. The price will be higher than it was pre-conflict, but we'll have to see what this "new normal" price will be. And he wouldn't buy any energy names till that shakes out.

A lot of oil companies have fallen since the highs of March/April. Likes this name.

Has never owned. The only oil stock he owns right now is CNQ.

Likes energy space. 
Better options for investors.
Would prefer integrated energy names (refining capability).

Strong free cash flow, credit profile and disciplined spending. Chinese demand will rise. Among the best names in energy.

They did a golden cross (50-day moving average above the 200). One of the best names in this space.

He remains overweight energy in this name and others. Oil is a great hedge to geopolitical risk, like a flare-up in Iran or the Russian war. Also, we're entering summer driving season. Also, oil will benefit from a rotation into the value trade. Oil companies are fundamentally sound.

Energy remains a favoured sector as oil and gas prices remain up from supply constraints. A large, diversified operator with lower production costs. Trades at 10x, a little expensive, but still high quality.