Imperial Oil (IMO-T)

The ZEO ETF recently broke out to new highs. In the group, he likes CNQ, IMO and SU.

Oil prices weak recently, generally gets a little firmer coming into winter. Lots of Middle East conflict. US energy producers in general have performed much worse than Canadian, partly because of debate on whether shale can sustain production. 

Longer term, the sector is attractive and these companies will generate a ton of cash and strong dividend growth. Near-term technical questions. He'd love to see price of oil stabilize. It has in last couple of days, but that's geopolitically driven.

Very well run company. Trading at premium to other energy companies. Safe company with excellent inventory. However, better options out there for investors. 

Rock-solid balance sheet. Great long-life assets. Operational excellence. Cashflow-generating machine. Bought back 1/3 of company's shares in last 7-8 years; that will continue. 5-year dividend growth rate is 23% a year. Pricing power. A company that will offset inflation. Yield is 2.5%.

The old Esso. Great company, but better names to own going forward. If an investor has owned since the 1970s, they've done really well but probably sitting on a heck of a tax liability.

Very bullish on energy. Strong cash flow that continues to be returned to shareholders. Expecting capital appreciation as energy stocks added to portfolios again. Will continue to hold shares. 

An alternative to CNQ. Returning capital to shareholders. Debt levels are down to 19%. Dividend growth north of 20%. Has grown dividend 23% a year over the last 5 years. Energy is one of the most under-owned sectors in the world. Good value and good total return. Yield is 2.5%.

Higher oil prices are better. But Trans Mountain pipeline is going to take a bunch more oil from Alberta, and so the differential on Canadian vs. US oil will continue to squeeze in. There's also been a pickup in volumes. He thinks the pension funds and foundations are going to have to own this sector again.

Currently testing lid on the chart direction. Would recommend buying. Currently breaking resistance. Bullish on oil prices. 

It's a stable, well-run integrated oil company, but he's never owned this, because the US parent majority-controls IMO. Is better growth elsewhere.