Stock price when the opinion was issued
Really good for a long-term hold. Solid Q3, beat on fund flow and free cashflow. Lower capex costs. Nice dividends. Nat gas has been challenged for a while, but it's part of the bridge to green energy. Exports are coming, which will really help.
Trades in line with peers, good balance sheet. Production growth of 8%, and 10% cashflow per share growth. Probably the highest quality of the gas names.
The 2024 chart is choppy, but there have been a series of higher lows. In mid-October 2023, we started a new 3-5 cyclical bull market, into the second half of 2025 or first half of 2026, but that's where the extreme danger zone is. As we get deeper into the cycle, the economy is running on all cyclinders which is when energy and materials are bid up. He remains constructive on energy. He's also bullish on natural gas.
Just cut and paste the chart from A to B, expecting more of the same. Liked it below $60; he trims between $70-75. Thinks oil and gas prices will generally be range-bound for the next year or two, and so will this kind of stock. Well run. Buy dips, don't chase strength.
Cold winter weather has been good for nat gas prices. Wild card is AI demand -- what's the sustainable fuel that can keep data centres running 24/7? It's natural gas. Over the next few years, a fortune will be spent building data centres. Hopefully, with new administration in Canada, this name can benefit from the added infrastructure.
Earnings this week, he expects big increase to special dividend. Nice place to collect a growing income stream.