Peter Hodson Whitecap Resources WCP-T BUY Mar 27, 2025

Harder and harder to start a new company, so consolidation makes sense. He owns CNQ, because if the market moves it'll move that name first. Anyone who wants to own WCP, owns it already. And there's no immediate catalyst to the industry. Be patient, collect the dividend, and know that it will be higher later.

It is focused on sustainable yield but has had reasonable growth as well. He isn't buying because he is interested more on the growth side. Another like this is Prairie Sky which has a very talented team.

Trapped in no-man's land, just like many of the other oil stocks. In a swing-trading range; buy near the bottom, sell at the top. If there's a breakout and it seems as though it's staying, he'll actually add more. But if it starts to roll over, he sells. Might be a bit more upside, but don't pile in at this point because it's so close.

He's totally out of oil producers, focusing more on pipelines (more volume-sensitive than price-sensitive). Purchase of Veren was exceptionally well timed, great asset at a great price. Lots of oil supply right now, concerns about demand, thinks oil will crack $60 again and maybe lower.

There is a merger deal. The earnings report last week was very good. He owns it in the growth fund and likes what they're building. Has very long inventory base. It is good for both oil and gas and can hold their dividend at 7%.

We'll have to see what the merged company looks like on the other side. No strong opinion on it. Looking at it from an options perspective, companies going into deals like this can see their option premium disappear.

If you don't own it, you can look to buy it ~$10 out to October, and sell that $10 put cash-covered (so 54 cents below where it's trading now). This lets you collect about 20 cents. You'll generate 2% over 2 months if the stock stays here or goes higher, and if the stock goes down you'll be buying it.

Long-term story for Western Canada is positive. Finally have infrastructure being built. Government and population seem to be more behind the sector. Short-term outlook is pretty cloudy, especially for oil and particularly as we head into the slower demand period of fall. 

Will take a while to digest VRN merger. Weakness for next 3-9 months. Over time, you'll do fine. Can hold for the dividend. For new $$, wait for a better entry point.

See his Top Picks.

Stock's behaved pretty well given what's going on out there. Trading above all the moving averages. Would probably have it on his watchlist. Dividend looks safe. He'd wait for a catalyst in the energy sector before adding.

It has gone sideways and is dependent on oil and gas prices. It is focused on longer life strong free cash flow assets. Has strong management and good insider holdings. Monitor the high payout ratio and integration risks. There is a possible 28% upside and the potential for an attractive short term rally.

Light oil with a high decline rate (versus other types of oil). Good job with enhanced oil recovery to try to mitigate that decline rate. Good management team. Company expects $200M in synergies from the merger, which should be accretive over time. Dividend safe at these levels. Hold, but don't add at these prices.

A name to buy right now would be CNQ.