Eric Nuttall Strathcona Resources SCR-T HOLD Oct 27, 2023

Weird mix, no synergies between them. Substantial producer. Prefers a pure play of either heavy oil or natural gas, as the dynamics of each are different. Just buy TOU, or see his Top Picks.

Skilled management team. Share price per following barrel is extremely attractive. Tight liquidity, but excellent for retail investors. 

A young company that's bought several companies and have accumulated a lot of heavy oil production. In their favour are the shrinking differential with WCS oil and lot of drilling inventory, but not in their favour is liquidity is tight, because a single energy fund owns so many shares and likely won't sell. It boasts a decent 15% cash flow. Are better peers to buy though he's tempted by this.

Resource rich. Public-private, given how much some stakeholders own. Liquidity is quite poor, trying to fix this with a wall of stock coming at us. Metrics screen very well. Meaningful upside, but you can't just buy based on an Excel spreadsheet, must be aware of other elements at play.

On his radar, but liquidity in the stock is very poor. Float is too small to buy a large chunk of shares. Likes its focus on the Montney and the oil sands (a national treasure). Loves long-dated assets and their quality. Meaningful leverage to rising oil.

He's not an M&A guy. If you want a really good answer, ask somebody else ;)  A board will often reject something like this because they think it should be higher. And maybe a competitor will come along with a better offer.

Right now, if you believe that because of what's going on in the Middle East we might have persistently high oil prices for some period of time, then a lot of these energy drillers will benefit.

In the energy business, scale will be essential going forward.