James RifeWhitecap ResourcesWCP.TOCOMMENTAug 09, 2016

When ARX was bought out, they canvassed options and chose TOU. But WCP would probably have been their next choice.

More exposure to light oil, which has a higher decline rate than some oil producers. Great management, good operators. Strong assets. Good job with enhanced water recovery. Run up a lot. For the next 5-10 years, fundamentals and dividend look good.

Quarterly results were fairly good. If your time frame extends to 2030 you'll see substantial higher oil prices. The company has done a wonderful job creating value for shareholders over time. If you are a trader, it appears that the whole energy complex is going lower. He sees a resolution in 2026 or 2027 in the Gulf prices and then oil prices will fall. But by 2030 oil prices will be higher because of the systemic underinvestment in the industry. 

Drillers are highly levered to the ups and downs of the oil market, and this name falls in that bucket. If it can produce long term and be profitable in the range of $50-60, then it's something to buy. But with oil spiking, he'd be inclined to take some $$ off the table.

It's had a good run and pays a good dividend, but the compounded returns in the past 5 years in the SAGD oil space were better.

Loves it. It's going up. Definite uptrend since early 2025, but he's a little worried about oil now, because it's getting parabolic. There's nothing wrong with the stock, but he may take some profits.

Commodity pricing could move the stock up. Also it has good success with drilling and is great with capital management. Pays very good dividend.

Add to it. Has 20 years of drilling inventory. Trades at a cheap 5x PE when it's worth 7x, so there's upside. It has decent size and will likely be bought out. The 4% dividend is sustainable.

The caller wondered about taking profits in this company. You could take a pause for a gas related stock but WCP is still very strong with a lot of production over a diverse number of regions. He would sell half and take profits, but keep half. He thinks that oil stays at $100 per barrel for the rest of the year.

Likes both the company and the dividend. CVE might be higher quality, but they're both good.

Would name it top pick again. Based on $70 WTI, WCP has 20% upside to $22.50; at $80, it's $26. He wouldn't be surprised if WCP was bought out. WCP has a super inventory in the Montney and Duvernay and at least 17 years of stay-flat inventory. The CEO always buys shares on weakness, strong balance sheet and pays a dividend of 4%. Modest growth.

After consolidating this year, it has broken out. A pullback is possible, but an opportunity. He likes it for the long term.

It is a mid-cap oil stock and their largest holding. It is one of the most misunderstood companies and is cheap without reason. Management has done an awesome job in its operations and it has beaten expectations in many quarters. It has well over 2 decades of very high quality inventory. US companies are eyeing Canadian companies Whitecap has 5.3 times cash flow and he sees a 40 % upside. Pays a dividend.

Torquier to the upside, due to its mix of light oil and gas. Know that the decline rate for light oil is higher, so they'll always have to reinvest in that. Pretty good management team. High dividend yield.

Her firm chose TOU instead.

27% gas, the rest is oil. Now the 5th largest oil producer in Canada. Market cap of $20B. Extremely well run. Lots of contiguous land, long reserve life. Probably one of the strongest takeout candidates. Trades ~5x cashflow, with considerable upside. 

With ARX being taken out, more institutions will be interested. Yield is 4.6%.

A large position for him. Loves manager. They had a great quarter. Likes the dividend and growth strategy. It depends on your view of the oil prices in the future. WCP is great to own throughout the cycle. In the late-2020's oil prices could go a lot higher than today.