Whitecap Resources (WCP-T)

Believes energy is due for strength. Very good management team with high quality assets. Current share price presenting value for investors. Good at execution between drilling and M&A. Would recommend as a good long term investment. Dividend is also very safe for income oriented investors. CEO also has a lot of insider ownership. 

Owns shares in income fund. ~7% yield which is very sustainable. Strong management team. Dividend takes up portion of cash flow, but at $70 very strong. Not too affected by weak natural gas prices - majority is oil production. 

Likes it, but can't own everything. Ongoing M&A concern, as management really likes to do deals which requires debt, creating an overhang on the stock. Q2 was exceptional, higher production and lower capex. Good results in Duvernay with incredibly economic wells. 

13-15% free cashflow yield. Yield is 7%, very sustainable. 

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.
Unlock Premium - Try 5i Free

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.