Glenn MacNeill, P.Eng.
ConocoPhillips
COP-N
WAIT
Dec 14, 2005
Analysts are not too keen on the Burlington (BR-N) takeover because the price they are paying is very high. In order to make it work, they have to do a lot of drilling and a lot of development work. Makes them the largest gas producer which is pretty fantastic, but a very expensive acquisition.
(A Top Pick Jun 24/21, Up 55%) He's adding to this. Energy remains attractive as oil prices remain firm. The current pullback in oil prices opens an opportunities. Pays a 2% dividend. 10% free cash flow. Will buyback shares and pays dividends.
A good proxy for the energy sector. Can't comment on short-term trading, because it all depends on where crude oil and nat gas prices go. It's a well-run company and pays an okay dividend, though not high.
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.
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.