Exxon Mobil (XOM)

This is heavily weighted towards natural gas. An OK Hold, but not a Buy, because there is not much growth.

The only oil name that he is ever owned. With all the carnage out there, this name has never breached any kind of Stop. The move down below $50 in oil is very destructive for a lot of different companies. There will be companies that go bankrupt and that get shut in. You end up with the survival of the fittest at the end, and this one will be one of the survivors. This all leads to higher oil prices in the future. It is going to take a while and you are going to have to be very patient.

Oil sands projects are generally very high cost. He questions where they are going to put in more money. Investors who live in the energy areas of Canada are already heavily exposed to the oil sector outside of the markets.

The best managed company over the last 30 years. At a valuation low, going back to 1994. Other companies’ pain is this company’s gain.

This gives you a great opportunity to buy one of the best run companies in the world, and at a really good valuation. His model price is $110-$111, an 18% upside. He wants large caps, certainly in the top 100 of the S&P 500. Yield of 2.92%.

Profitable at $80 oil. Better than Chevron. Go with the giant in this case. The easy oil is gone so everything being developed now has something tricky about it. Nothing is cheap any more. If the oil price comes down too low, many projects will get shelved and supply will come down and then the price will go up.

The best run company in the US. His model price is $111.55, a 23% upside. People are basically jettisoning these oil names out of their portfolios. As a Value manager, he wants to be there.

(Market Call Minute.) There are better places to be in the energy market. Too broad-based.

Doesn’t think there is any reason for a Canadian to own this. The 2^nd largest company globally, by market cap. If you are a fund manager, and your job is to get tens of billions of dollars out the door, you invest in something like this. There are far better alternative names in Canada with dividend yields.

Well managed international energy giant. Dividend has gone up and the stock is not ridiculously priced. Fully priced. Very difficult to say where oil is going to go. US have big stockpiles of oil, but price persists in staying high. In spite of everybody talking about replacing oil with renewable resources, it doesn’t seem to be happening any time soon. Thinks there is still money to be made owning companies like this. If you in a taxable account, there is a tax benefit to having a Canadian company.

A great name. Large integrated global producer. She likes energy long-term. With all the new technology going on in the US, they are going to be well-positioned. Good, long-term hold for people that want exposure to energy.

Owns 70% of Imperial Oil. This one is okay, but it just drifts along. When one part of company is doing well another isn’t. He would prefer to be more focused. Prefers the US drillers.

If this fell back to the $84 level, he would buy a heck of a lot more. Warren Buffett disclosed that he had a big position in it. This is only the 3^rd time it has traded at this valuation in the last 18 years. He can see a 30% upside in this.

Great American company. Fully integrated oil company. They are going to have their ups and downs. Early into natural gas area. No reason to stay away.

She owns Chevron. XOM is reasonable from a multiple perspective but Chevron will do better from a growth perspective.