Husky Energy (HSE.TO)

Cenovus (CVE-T) or Husky (HSE-T)? He moved some money here when oil prices came off, as he felt they would benefit from the retail side of their business. He still feels that way. Dividend yield of 4.8%.

He owns a small amount, but it is not a core holding. Has been a pretty good place to hide because it has downstream and upstream operations. You also get a dividend of 4% plus. He probably would prefer Suncor (SU-T) or Canadian Natural Resources (CNQ-T) over this.

You have to have a view on oil prices to buy any energy stock. This one is a perfectly fine name. Her view is that the oil price is not going to do much out of the 2^nd half of this year.

Suncor (SU-T) or Husky(HSE-T)? Over the long term within energy, you want to own the high-quality names. This company has done a pretty good job. Vertically integrated. Slipping up on their oil sands as there is some International exposure. His choice would be neither. He prefers Imperial Oil (IMO-T) over the long-term, because by far they are the best operator with the highest returns.

There are better things out there. You need to be more defensive in the energy sector. At some point oil is definitely going higher. This one has upstream, downstream and gas stations, but he would prefer others like SU-T.

Stock vs. Stock. HSE-T vs. SU-T. There is probably more value in HSE-T over SU-T. HSE-T does not have the retail division to the extent that SU-T does. HSE-T is more oversold that SU-T.

Reasonably sustainable dividend. Assets outside North America. A bit more defensive. Over time it will be just fine.

It is too late to get out. This is the time to do the analysis. They have had a very careful turnaround under the current CEO. Capital allocation has been very, very good. They have created more free cash flow. They also have some downstream assets that produce a great deal of extra profits that come from lower oil prices. Upstream operations have been extremely beneficial.

His view is that $75 oil could be here for a while, but could go lower. Very few companies have cut CapX for 2015. If this continues, there could be more pain. Maintaining dividends is going to be difficult for a lot of companies, unless they have a very active hedging program. Dividend yield of 4.4%.

This has the advantage of having downstream facilities, and with lower energy prices going forward, that may stimulate demand. The dividend should be sustainable.

Chart shows an upward trend from early 2012, but it was broken this year. It took out some pretty significant support level. Energy is probably oversold and due for a bounce. It is questionable if he would want to hold this for the next couple of years.

It is a company that he just doesn’t get a warm fuzzy feeling about. Prefers CVE-T or SU-T even if net backs are higher for HSE-T.

Not one of his favourites. Prefers SU-T or IMO-T, but it is a play in the sector. You need to own 10 stocks because if you own 2 or 3 you may pick the wrong ones. He prefers XEG-T or ZEO-T for diversification.

A good name. Solid and integrated. Even with WTI oil at $80 and $3.50 natural gas and almost no debt, it is still cheap. 5X enterprise value to discounted adjusted cash flow versus peers at around 7.5-8 times. Dividend is safe-ish at around 100% payout ratio. At these levels, unless you think oil is going to really fall apart, you own it.

Doesn’t know if Shorting has been specific to this company. The whole sector overall has been punished, partially due to Short sellers. This is a conglomerate having a lot of assets from producing. One neat thing is their Southeast Asian offshore component where gas prices fetch a lot more than they do here. Good quality company, but just a question of the sector recently having been taking a beating. He could think of worse things to own than this in the energy patch.