BP PLC (BP-N)

Stock's never really recovered from oil spill in 2010. Macro overlay of tariffs and a slowing economy. Would make sense for Shell to try for a takeout, but would probably fail on anti-trust. He thinks Shell is the better company, and that's the one he holds in the space.

Generally, oil is out of favour. You make money when you buy, not when you sell. If you like the name, you can buy it here. If you get a takeout premium on it, then sell into the premium and don't wait for the close.

It's the cheapest oil company. Are buying back stock an are increasing the dividend, but they let their debt get too high. Then, oil prices softened. We likes the new CEO, though, and will announce a new strategy. He expects asset sales to reduce debt and eventually raise share prices.

Case for energy is still there. Transitioning toward more renewable energy, low-carbon solutions. Long term, can make some sense. Oil price has recovered since pandemic days. Nice yield of 4.5%. In the space, his favourite name is SHEL. 

Depends on price of oil. Why buy foreign? Great oil companies in Canada like CNQ and SU, which do very well. Difficult environment in the face of renewables. Buying back shares, reducing debt, increasing dividend.

Large-cap oil will continue to do well. Using capital in shareholder-friendly ways. Lots of accidents over the years. Buying this takes on currency risk. Lots of great Canadian companies to own instead. He owns CNQ.

He likes the energy space since there is a tight supply. You need to see a breakout above recent highs before buying. He prefers Shell on the international scale. Pays a 3.3% dividend.

One of the best performing major energy companies in the world.
Trades at cheaper price than other names in the sector.
Very good oil marketing & trading group.
Good capital allocation at company with share buybacks and debt reduction.
Expecting recovery of oil price going forward.

Buying back shares, increased dividend, paying down debt. Returning free cashflow to shareholders. Will continue to do that. Trying to be more environmentally friendly, but can't avoid that they're oil & gas. Capex will slowly go up. Throws up a lot of cash. Dividend is well supported.

Sell shares and buy Canadian energy instead.
Conventional oil production falling.
Misguided investments in renewables.
Not a good long term investment.