This is one of two oil large-caps he owns. CVE reported an inline quarter today, including taking a charge on the Keystone XL. At $60 oil, CVE is targeted at 19% free cash flow yield. They diluted some upside when they bought Husky Energy, but there are likely some assets in Husky to delever CVE. Large caps like this have really lagged the rise in oil prices but will bounce back. Doesn't know why it's getting pressured today, but he isn't worried. The merger with Husky means CVE is committed to paying down that debt, which he expects to reach a market average for debt by end of 2021.
This is one of two oil large-caps he owns. CVE reported an inline quarter today, including taking a charge on the Keystone XL. At $60 oil, CVE is targeted at 19% free cash flow yield. They diluted some upside when they bought Husky Energy, but there are likely some assets in Husky to delever CVE. Large caps like this have really lagged the rise in oil prices but will bounce back. Doesn't know why it's getting pressured today, but he isn't worried. The merger with Husky means CVE is committed to paying down that debt, which he expects to reach a market average for debt by end of 2021.
HSE-T + CVE-T: Stay after the merger? He does not own either one. He understands the merger makes sense. There are a lot of cost savings that can be found. He prefers CNQ-T, PXT-T and one of his Top Picks today. He prefers these to HSE-T. If the sector bounces back you could get an uplift.
He was not overly enthused by the Husky take over. He has warmed up to the outlook of the stock in a better oil price environment. At $50 oil, they do not compete as well as CNQ or SU. He has started to dip his toe into CVE. At $50 oil, they would be trading at a 24% free cashflow yield, which is compelling for a large cap stock.
He was not overly enthused by the Husky take over. He has warmed up to the outlook of the stock in a better oil price environment. At $50 oil, they do not compete as well as CNQ or SU. He has started to dip his toe into CVE. At $50 oil, they would be trading at a 24% free cashflow yield, which is compelling for a large cap stock.
It's fine but they have a lot of refining exposure where there is overcapacity. It's not terribly overbought like CNQ. There may be better areas to be invested. You probably want Canadian small-cap with some natural gas.
It's fine but they have a lot of refining exposure where there is overcapacity. It's not terribly overbought like CNQ. There may be better areas to be invested. You probably want Canadian small-cap with some natural gas.
The unique thing is their cost profile -- it is very low compared to peers. The trouble for CVE is getting their production out of Canada. That is why he favours pipelines over producers. There is too much commodity price risk, so he would not be a buyer. You might want to consider EOG instead as they do not have pipeline constraints to worry about.
The unique thing is their cost profile -- it is very low compared to peers. The trouble for CVE is getting their production out of Canada. That is why he favours pipelines over producers. There is too much commodity price risk, so he would not be a buyer. You might want to consider EOG instead as they do not have pipeline constraints to worry about.
They have ample liquidity and have access to $5.5 billion in capital. They have cash burn of $1.5 billion. This gives them years of longevity. He thinks Suncor might eventually take a run at them. This is the only large cap company he owns. He thinks it has upside of 100% or more. If you like the outlook for heavy oil, it is a good way to play the recovery. Yield 0% (Analysts’ price target is $6.12)
They have ample liquidity and have access to $5.5 billion in capital. They have cash burn of $1.5 billion. This gives them years of longevity. He thinks Suncor might eventually take a run at them. This is the only large cap company he owns. He thinks it has upside of 100% or more. If you like the outlook for heavy oil, it is a good way to play the recovery. Yield 0% (Analysts’ price target is $6.12)
Ranking : 4 out of 5
Bullish - Buy Signals / Votes : 6
Neutral - Hold Signals / Votes : 0
Bearish - Sell Signals / Votes : 2
Total Signals / Votes : 8
Cenovus Energy is a Canadian stock, trading under the symbol CVE-T on the Toronto Stock Exchange (CVE-CT). It is usually referred to as TSX:CVE or CVE-T
In the last year, 8 stock analysts published opinions about CVE-T. 6 analysts recommended to BUY the stock. 2 analysts recommended to SELL the stock. The latest stock analyst recommendation is PAST TOP PICK. Read the latest stock experts' ratings for Cenovus Energy.
Cenovus Energy was recommended as a Top Pick by Eric Nuttall on 2021-04-30. Read the latest stock experts ratings for Cenovus Energy.
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
8 stock analysts on Stockchase covered Cenovus Energy In the last year. It is a trending stock that is worth watching.
On 2021-05-06, Cenovus Energy (CVE-T) stock closed at a price of $9.72.
