Whitecap Resources (WCP.TO)

Loves both, and recently put money into both.

Concern that it's going to be active in M&A, which creates an overhang on the stock, so it's not appealing. Recently sold mid-stream assets, will use proceeds for share buybacks.

Very good dividend that is safe. Production and earnings continue to beat expectation. Capex unchanged (good for business). Company valuation very fair (in line with peers). Strong management team with quality assets. Expecting further stock buybacks and maybe a dividend raise. 

This was another question on which company she prefers.. They are both doing well. Her company owns CNQ which has a very good, conservative management team and good assets. It buys assets at rock bottom prices and has a good mix. They can now pay back 100% of free cash flow to investors. WCP is light oil which has a higher decline rate but the management team is doing well making the wells last longer.

Really well run. Really solid. If he were in the space, it's one of the better names to be in. For him right now, he sees commodity potential in uranium, fertilizer, and copper. Not oil. 

Not investing in mid-cap energy space. Would rather own a natural gas name. Not overly bullish on oil prices. Would rather own CNQ for oil exposure. Strong company, but not buying. 

Underperformed the index. Sold it from his main fund. Kept it in his income fund, as dividend is very dependable. Perception of relentless M&A, investors are tired of this, creates overhang. A $15 price is reasonable. Yield is 7%. 

Better opportunities elsewhere for capital appreciation.

A great dividend payer, but there's a perception that they keep buying assets when they have enough. He projects 45% upside, so attractive, but that overhang remains.

It's mispriced and should be higher. Are active acquirers which creates overhangs. The street perceives them as liking to do deals, so sentiment is poor, which is baffling. Until this perception changes, WCP will lag. But he likes their free cash flow yield and other metrics.

Is bullish oil. It's a trading stock. will sell at $11-12. Pays a fat dividend. They focus on shareholder value.

WCP is an energy company that is now trading at 6.0x times' Forward P/E. In the 4Q, WCP’s revenue declined 18% to $914M, compared to the same period last year of $1.16B and EPS is $0.49 compared to last year of $0.52, indicating decent cost control. Daily production remains largely unchanged at 166,500 BOE/day. Forecast for 2024 is for production 165,000 to 170,000. The balance sheet is solid, net debt went down from $1.9B to $1.4B, and the net debt/EBITDA is only around 0.6x. The company does have a decent capital return policy the current yield is quite attractive (8% dividend yield and 2% from buyback). Overall, a very decent quarter despite headwind from commodity prices.
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Investors not happy with 2022 XTO acquisition. Ratio b/w liquids rich and natural gas not favorable. Questions around sustainability of dividend. Personally, thinks dividends are safe with a large margin of safety. Capital plans can be deferred if required. Oil prices starting to recover. Will continue to hold. 

It is in light oil and has done some acquisitions so the debt levels are higher now. Has a high dividend yield. She prefers Freehold and it comes without the exploration risk along with almost a 7% yield.

Not positive on recent moves by company - paying down too much debt. Would rather the company had reinvested cash into earnings growth rather than debt reduction. Also not a fan of dividends due to withholding tax. Would rather cash used on buybacks or earnings growth. Will continue to own shares. 

WCP cut its dividend in 2016 and 2020, but in recent years it has not. Cash from operations is highly positive at $1.822B in the last-twelve-months along with a solid balance sheet which makes us believe that the dividend is probably secure, barring a collapse in commodity prices. . The nine month payout ratio was 76%. 
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