Eric Nuttall
Member since: Mar '10
Partner & Senior Portfolio Manager at
Ninepoint Partners
Ninepoint Partners
1919 Opinions
Latest Top Picks
(A Top Pick Dec 19/19, Down 52%) It continues to offer meaningful leverage for rising oil prices. They hedged off 50% of their oil exposure next year. He does not own this for this reason.
(A Top Pick Dec 19/19, Down 44%) They are deleveraging and have pulled off some asset dispositions. They are doing everything the market has asked them for. It is under pressure because you need market scale to attract investors. We need to see further consolidation. You need 19-20% free cash flow yield at $60 oil.
(A Top Pick Dec 19/19, Up 17%) This is one you can still own in the natural gas space. They will continue to consolidate. There might be some paper coming to the market. There has been some rotation out of natural gas with a warmer winter and it has put pressure on the share price.
The deal with Torc is positive. The stock price was re-rated and it has gone up. They have first mover advantage and have an edge in the space. 13% free cashflow yield at $50, 25% at $60. A good name to own in the small-mid-cap range. They are a net-zero emitter with their carbon injection technology. (Analysts’ price target is $5.41)
We have been going through a unique time when the small cap players outperform the large caps. You can own large caps with the likelihood of upside fairly large. At $50 oil, they are trading at a 16% free cashflow yield and 23% at $60. (Analysts’ price target is $33.77)
Signal
Opinion
Expert
Chart
COMMENT
COMMENT
December 11, 2020
It's gratifying to see what he thought would happen, happen. Given the strong rebound in demand, especially China and India, as well as the vaccine, it is promising. The world we enter into post-covid is tighter than before covid. It is quite bullish.
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It's gratifying to see what he thought would happen, happen. Given the strong rebound in demand, especially China and India, as well as the vaccine, it is promising. The world we enter into post-covid is tighter than before covid. It is quite bullish.
COMMENT
COMMENT
December 11, 2020
The fear of peak demand has brought about peak supply. Looking to 2021, all the signs point to demand recovering and the recovery will be faster than anticipated. US shale is also in decline. OPEC capacity will have little spare capacity. The oil price could go back to pre-covid levels.
Show full opinionHide full opinionThe fear of peak demand has brought about peak supply. Looking to 2021, all the signs point to demand recovering and the recovery will be faster than anticipated. US shale is also in decline. OPEC capacity will have little spare capacity. The oil price could go back to pre-covid levels.
DON'T BUY
DON'T BUY
December 11, 2020
He would not be a buyer. They are using their balance sheet to pay their dividends. It will probably rise with the sector though. By pursuing to in meeting demands, it is going in the right direction. There are much better names to own in the space.
Show full opinionHide full opinionHe would not be a buyer. They are using their balance sheet to pay their dividends. It will probably rise with the sector though. By pursuing to in meeting demands, it is going in the right direction. There are much better names to own in the space.
integrated oils
DON'T BUY
DON'T BUY
December 11, 2020
If we have a warm winter, it debases the bullish theme. We are seeing a warmer winter and gas has fallen from its peak. There are some companies in the gas space that would be buys, but this is a hard buy in the current moment, especially with the struggle for investor relevance. He would own companies with more oil exposure.
Show full opinionHide full opinionIf we have a warm winter, it debases the bullish theme. We are seeing a warmer winter and gas has fallen from its peak. There are some companies in the gas space that would be buys, but this is a hard buy in the current moment, especially with the struggle for investor relevance. He would own companies with more oil exposure.
oil/gas
DON'T BUY
DON'T BUY
December 11, 2020
The stock has been underperforming. While most revenue comes from liquids, 60% production is weighted for natural gas. There will be production growth for condensates in the near future. The gas side has pulled this stock down. There are more clear names to go to first, and this would be more second tier.
Show full opinionHide full opinionThe stock has been underperforming. While most revenue comes from liquids, 60% production is weighted for natural gas. There will be production growth for condensates in the near future. The gas side has pulled this stock down. There are more clear names to go to first, and this would be more second tier.
oil/gas
BUY
BUY
December 11, 2020
A core holding. Management has done a good job repositioning the company. They are slowing production growth and maximizing free cashflow. They are deleveraging. Their ability to generate free cashflow is extremely high. 16% free cashflow yield at $50, and 34% free cashflow yield at $60.
Show full opinionHide full opinionA core holding. Management has done a good job repositioning the company. They are slowing production growth and maximizing free cashflow. They are deleveraging. Their ability to generate free cashflow is extremely high. 16% free cashflow yield at $50, and 34% free cashflow yield at $60.
Energy
DON'T BUY
DON'T BUY
December 11, 2020
Consolidation of the small and mid-cap names is an important theme. There are better names to own in the space.
Show full opinionHide full opinionConsolidation of the small and mid-cap names is an important theme. There are better names to own in the space.
oil/gas
DON'T BUY
DON'T BUY
December 11, 2020
He does not own any service names. Oil company spending will go to dividend increases, share buybacks or deleveraging. Production growth related spending is a couple years away. Bullish elements for gas has been offset by decrease in production. It is too expensive right now for him to buy.
Show full opinionHide full opinionHe does not own any service names. Oil company spending will go to dividend increases, share buybacks or deleveraging. Production growth related spending is a couple years away. Bullish elements for gas has been offset by decrease in production. It is too expensive right now for him to buy.
oil/gas field services
COMMENT
COMMENT
December 11, 2020
Their leverage is the sore spot for this company. They have a note coming up and they do not have the cash right now. The company is working on the debt issue and trying to unlock restricted cash. If you are a super bull on oil, then you could try but there are other names to own if you think oil will remain status quo.
Show full opinionHide full opinionTheir leverage is the sore spot for this company. They have a note coming up and they do not have the cash right now. The company is working on the debt issue and trying to unlock restricted cash. If you are a super bull on oil, then you could try but there are other names to own if you think oil will remain status quo.
oil/gas
PAST TOP PICK
PAST TOP PICK
December 11, 2020
(A Top Pick Dec 19/19, Down 52%) It continues to offer meaningful leverage for rising oil prices. They hedged off 50% of their oil exposure next year. He does not own this for this reason.
Show full opinionHide full opinion(A Top Pick Dec 19/19, Down 52%) It continues to offer meaningful leverage for rising oil prices. They hedged off 50% of their oil exposure next year. He does not own this for this reason.
oil/gas
PAST TOP PICK
PAST TOP PICK
December 11, 2020
(A Top Pick Dec 19/19, Down 44%) They are deleveraging and have pulled off some asset dispositions. They are doing everything the market has asked them for. It is under pressure because you need market scale to attract investors. We need to see further consolidation. You need 19-20% free cash flow yield at $60 oil.
Show full opinionHide full opinion(A Top Pick Dec 19/19, Down 44%) They are deleveraging and have pulled off some asset dispositions. They are doing everything the market has asked them for. It is under pressure because you need market scale to attract investors. We need to see further consolidation. You need 19-20% free cash flow yield at $60 oil.
oil/gas
PAST TOP PICK
PAST TOP PICK
December 11, 2020
(A Top Pick Dec 19/19, Up 17%) This is one you can still own in the natural gas space. They will continue to consolidate. There might be some paper coming to the market. There has been some rotation out of natural gas with a warmer winter and it has put pressure on the share price.
Show full opinionHide full opinion(A Top Pick Dec 19/19, Up 17%) This is one you can still own in the natural gas space. They will continue to consolidate. There might be some paper coming to the market. There has been some rotation out of natural gas with a warmer winter and it has put pressure on the share price.
oil/gas
DON'T BUY
DON'T BUY
December 11, 2020
Natural gas is 80% of their production stream. Their liquids weighting is falling more than he thought in 2021. This erodes the free cashflow the company is able to generate. It is not as attractive relative to other names. It would have to fall 10% more from here to be a buy. Tourmaline is a better buy.
Natural gas is 80% of their production stream. Their liquids weighting is falling more than he thought in 2021. This erodes the free cashflow the company is able to generate. It is not as attractive relative to other names. It would have to fall 10% more from here to be a buy. Tourmaline is a better buy.
oil/gas
BUY
BUY
December 11, 2020
A core holding if you are bullish on oil. They have been increasing takeaway capacity and global demand remains strong. They are a cashflow machine and they are able to de-lever quickly.
Show full opinionHide full opinionA core holding if you are bullish on oil. They have been increasing takeaway capacity and global demand remains strong. They are a cashflow machine and they are able to de-lever quickly.
oil/gas
TOP PICK
TOP PICK
December 11, 2020
The deal with Torc is positive. The stock price was re-rated and it has gone up. They have first mover advantage and have an edge in the space. 13% free cashflow yield at $50, 25% at $60. A good name to own in the small-mid-cap range. They are a net-zero emitter with their carbon injection technology. (Analysts’ price target is $5.41)
Show full opinionHide full opinionThe deal with Torc is positive. The stock price was re-rated and it has gone up. They have first mover advantage and have an edge in the space. 13% free cashflow yield at $50, 25% at $60. A good name to own in the small-mid-cap range. They are a net-zero emitter with their carbon injection technology. (Analysts’ price target is $5.41)
Oil and Gas (Integrated Oils)
TOP PICK
TOP PICK
December 11, 2020
We have been going through a unique time when the small cap players outperform the large caps. You can own large caps with the likelihood of upside fairly large. At $50 oil, they are trading at a 16% free cashflow yield and 23% at $60. (Analysts’ price target is $33.77)
Show full opinionHide full opinionWe have been going through a unique time when the small cap players outperform the large caps. You can own large caps with the likelihood of upside fairly large. At $50 oil, they are trading at a 16% free cashflow yield and 23% at $60. (Analysts’ price target is $33.77)
oil/gas
TOP PICK
TOP PICK
December 11, 2020
A feed stock for another company that wants scale. Clean balance sheet and asset holdings. Trades at 13% free cashflow yield at $50, and 31% at $60. You get a free cashflow engine. (Analysts’ price target is $1.54)
Show full opinionHide full opinionA feed stock for another company that wants scale. Clean balance sheet and asset holdings. Trades at 13% free cashflow yield at $50, and 31% at $60. You get a free cashflow engine. (Analysts’ price target is $1.54)
oil/gas
BUY
BUY
December 11, 2020
This gives you a large operational leverage to oil prices rising. Their primary asset is burdened with high royalty rates. After $50 oil, every dollar is very significant for free cashflow. At $50 oil, they would trade at 3.3 times and at $60 at 2.4 times. Historically, they traded at 8 times. However, the market has changed. At $60, they could generate 25% free cashflow. The name has underperformed due to natural gas prices falling and court issues for the Dakota Access Pipeline. However there is rail capacity to compensate. One of his largest holding at around 7% weight and he continues to buy.
Show full opinionHide full opinionThis gives you a large operational leverage to oil prices rising. Their primary asset is burdened with high royalty rates. After $50 oil, every dollar is very significant for free cashflow. At $50 oil, they would trade at 3.3 times and at $60 at 2.4 times. Historically, they traded at 8 times. However, the market has changed. At $60, they could generate 25% free cashflow. The name has underperformed due to natural gas prices falling and court issues for the Dakota Access Pipeline. However there is rail capacity to compensate. One of his largest holding at around 7% weight and he continues to buy.
oil/gas
COMMENT
COMMENT
November 20, 2020
We can finally look towards a post-covid world. The market is looking through the lockdown and induced demand loss. The structural loss of US shale and capital investment moving to renewables also points to a positive outlook on crude oil. We see a tightening of supply. He is still confident we will see $50 oil early next year and $60 later that year. Energy companies have enormous free cashflow right now.
Show full opinionHide full opinionWe can finally look towards a post-covid world. The market is looking through the lockdown and induced demand loss. The structural loss of US shale and capital investment moving to renewables also points to a positive outlook on crude oil. We see a tightening of supply. He is still confident we will see $50 oil early next year and $60 later that year. Energy companies have enormous free cashflow right now.
COMMENT
COMMENT
November 20, 2020
They are running at a higher than average leveraged position. Their next maturity is 2023 so there is running room. The outlook for condensate is very positive. 30% free cash flow at $50 oil, and 53% free cashflow yield at $60.
Show full opinionHide full opinionThey are running at a higher than average leveraged position. Their next maturity is 2023 so there is running room. The outlook for condensate is very positive. 30% free cash flow at $50 oil, and 53% free cashflow yield at $60.
oil/gas
COMMENT
COMMENT
November 20, 2020
Future of oil. The global population in 2050 will be at 2B people. Mass EV adoption is very challenging due to economics. Just from a base metal perspective, it would consume 85% of lithium and 105% of cobalt reserves in the world. Hydrogen would displace 4% of oil demands in 2050. The notion of peak demand is a fallacy but the reality is that this will lead to peak supply which will be very real.
Show full opinionHide full opinionFuture of oil. The global population in 2050 will be at 2B people. Mass EV adoption is very challenging due to economics. Just from a base metal perspective, it would consume 85% of lithium and 105% of cobalt reserves in the world. Hydrogen would displace 4% of oil demands in 2050. The notion of peak demand is a fallacy but the reality is that this will lead to peak supply which will be very real.
HOLD
HOLD
November 20, 2020
A go to natural gas name. 19x free cashflow yield right now. Balance sheet and debt is fine. It has relevant obstacles and market cap is a challenge, but it is a hold. It depends on how cold the winter is. If it is a warm winter, get out.
Show full opinionHide full opinionA go to natural gas name. 19x free cashflow yield right now. Balance sheet and debt is fine. It has relevant obstacles and market cap is a challenge, but it is a hold. It depends on how cold the winter is. If it is a warm winter, get out.
oil/gas
WATCH
WATCH
November 20, 2020
At $45 oil, the target price would be $1.50. At current oil prices, it is trading at a 4% free cashflow yield. He believes this company will not be around for much longer. The valuation is very compelling. However, either they need to get bigger or to get out and be scaled up by someone else.
Show full opinionHide full opinionAt $45 oil, the target price would be $1.50. At current oil prices, it is trading at a 4% free cashflow yield. He believes this company will not be around for much longer. The valuation is very compelling. However, either they need to get bigger or to get out and be scaled up by someone else.
oil/gas
BUY WEAKNESS
BUY WEAKNESS
November 20, 2020
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.
oil/gas
SELL
SELL
November 20, 2020
Their balance sheet needs to be fixed, assets are scattered all over the world so operational focus is difficult. Their valuation is not compelling compared to other names. He has been a sell for years.
Show full opinionHide full opinionTheir balance sheet needs to be fixed, assets are scattered all over the world so operational focus is difficult. Their valuation is not compelling compared to other names. He has been a sell for years.
oil/gas
DON'T BUY
DON'T BUY
November 20, 2020
Not a holding now. They paid off all their debt by selling some assets. They are at a net cash position. In the short term there is no reason to own the stock due to lack of catalyst.
Show full opinionHide full opinionNot a holding now. They paid off all their debt by selling some assets. They are at a net cash position. In the short term there is no reason to own the stock due to lack of catalyst.
oil/gas
COMMENT
COMMENT
November 20, 2020
CNQ would be better for dividend sustainability. They have less maintenance requirements on their properties, a better run company. There is better inside ownership. He owns both. At $60 oil, CNQ will have 18% free cashflow yield. Suncor has less leverage due to refining exposure.
integrated oils
COMMENT
COMMENT
November 20, 2020
CNQ would be better for dividend sustainability. They have less maintenance requirements on their properties, a better run company. There is better inside ownership. He owns both. At $60 oil, CNQ will have 18% free cashflow yield. Suncor has less leverage due to refining exposure.
oil/gas
COMMENT
COMMENT
November 20, 2020
The momentum today will off-set tax-loss selling. Looking through the very short term, the dynamics of the sector are tighter. They had a disappointing 2021 forecast with more gas allocations. If you are bullish on natural gas, you could be a buyer, but he does not find it too compelling.
Show full opinionHide full opinionThe momentum today will off-set tax-loss selling. Looking through the very short term, the dynamics of the sector are tighter. They had a disappointing 2021 forecast with more gas allocations. If you are bullish on natural gas, you could be a buyer, but he does not find it too compelling.
oil/gas
PAST TOP PICK
PAST TOP PICK
November 20, 2020
(A Top Pick Dec 19/19, Down 64%) It offers meaningful beta for increasing oil price. He thinks it will lag other names, especially since more and more investors favour MEG. He does not hold it.
(A Top Pick Dec 19/19, Down 64%) It offers meaningful beta for increasing oil price. He thinks it will lag other names, especially since more and more investors favour MEG. He does not hold it.
oil/gas
PAST TOP PICK
PAST TOP PICK
November 20, 2020
(A Top Pick Dec 19/19, Down 60%) It offers meaningful cashflow. They are treading water but have meaningful leverage to an increasing oil price. At $50, it will trade at 24% free cashflow yield, at $60. 60%. It could potentially amalgamate with other companies in the area.
Show full opinionHide full opinion(A Top Pick Dec 19/19, Down 60%) It offers meaningful cashflow. They are treading water but have meaningful leverage to an increasing oil price. At $50, it will trade at 24% free cashflow yield, at $60. 60%. It could potentially amalgamate with other companies in the area.
oil/gas
PAST TOP PICK
PAST TOP PICK
November 20, 2020
(A Top Pick Dec 19/19, Up 21%) He has reduced his position from 10% - 2% due to implosion of the natural gas pricing from the warm weather. They can use their strong balance sheet and Topaz, as an aggregator. He expects them to be aggressive as a consolidator.
Show full opinionHide full opinion(A Top Pick Dec 19/19, Up 21%) He has reduced his position from 10% - 2% due to implosion of the natural gas pricing from the warm weather. They can use their strong balance sheet and Topaz, as an aggregator. He expects them to be aggressive as a consolidator.
oil/gas
TOP PICK
TOP PICK
November 20, 2020
A huge laggard this year. It is trailing other names at 20-30%. They have not yet reinstated dividends. They should reinstate it early next year. At current levels, the stock trades at 14% free cashflow yield. At $50-$60 oil, it trades at 30%-60% free cashflow yield for dividends and buy-backs. (Analysts’ price target is $2.46)
Show full opinionHide full opinionA huge laggard this year. It is trailing other names at 20-30%. They have not yet reinstated dividends. They should reinstate it early next year. At current levels, the stock trades at 14% free cashflow yield. At $50-$60 oil, it trades at 30%-60% free cashflow yield for dividends and buy-backs. (Analysts’ price target is $2.46)
oil/gas
TOP PICK
TOP PICK
November 20, 2020
The mid-cap names are where you really want to focus. They have done a good job of taking advantage of the pandemic and doing MNA. It will be one of the first names to profit from money coming back to the sector. They could gain even bigger scale and be re-rated by multiple. Currently trading at 16-30% free cashflow yield. (Analysts’ price target is $3.57)
Show full opinionHide full opinionThe mid-cap names are where you really want to focus. They have done a good job of taking advantage of the pandemic and doing MNA. It will be one of the first names to profit from money coming back to the sector. They could gain even bigger scale and be re-rated by multiple. Currently trading at 16-30% free cashflow yield. (Analysts’ price target is $3.57)
Oil and Gas (Integrated Oils)
TOP PICK
TOP PICK
November 20, 2020
They have paid down debt, but their balance sheet is not yet where investors want. Their assets were in demand from Husky. If oil prices strengthen, he does not expect this to exist for long since it is a big cashflow machine. It is hedge-fund heavy but he would buy a little if you are bullish on oil. (Analysts’ price target is $3.99)
They have paid down debt, but their balance sheet is not yet where investors want. Their assets were in demand from Husky. If oil prices strengthen, he does not expect this to exist for long since it is a big cashflow machine. It is hedge-fund heavy but he would buy a little if you are bullish on oil. (Analysts’ price target is $3.99)
oil/gas
DON'T BUY
DON'T BUY
November 20, 2020
Investors are more comfortable with their oil sands operation and yet it is discounted in the stock. There is no compelling reason to own it. The valuation is also not overly compelling. There are other names.
Show full opinionHide full opinionInvestors are more comfortable with their oil sands operation and yet it is discounted in the stock. There is no compelling reason to own it. The valuation is also not overly compelling. There are other names.
integrated oils
COMMENT
COMMENT
October 16, 2020
He thinks there is a shot for WTI to rise to $50. The economy is healing quicker than thought. The crude surplus YOY and other fuel demands are compressing. Inventory is falling around the world. Demand is also rising; for example, in India, diesel demand is up 9%.
Show full opinionHide full opinionHe thinks there is a shot for WTI to rise to $50. The economy is healing quicker than thought. The crude surplus YOY and other fuel demands are compressing. Inventory is falling around the world. Demand is also rising; for example, in India, diesel demand is up 9%.
COMMENT
COMMENT
October 16, 2020
U.S. Shale. The US shale story is over. They will never surpass the high watermark of 13M barrel per day. It negates US growth. Looking at non-US production, we are in the 6th year where we're not investing enough to offset global declines. He is overwhelmingly bullish on oil.
Show full opinionHide full opinionU.S. Shale. The US shale story is over. They will never surpass the high watermark of 13M barrel per day. It negates US growth. Looking at non-US production, we are in the 6th year where we're not investing enough to offset global declines. He is overwhelmingly bullish on oil.
COMMENT
COMMENT
October 16, 2020
He does not believe OPEC will increase production. There is no meaningful reason for a supply response. The additional 2M barrels per day expected in January will not come online either probably.
Show full opinionHide full opinionHe does not believe OPEC will increase production. There is no meaningful reason for a supply response. The additional 2M barrels per day expected in January will not come online either probably.
DON'T BUY
DON'T BUY
October 16, 2020
It would not be a name he would own. The number of market participants are very small. There is a certain market-cap threshold for market relevance. There is a pressure for MnA. It has higher cost, medium heavy oil company. They suspended dividends.
Show full opinionHide full opinionIt would not be a name he would own. The number of market participants are very small. There is a certain market-cap threshold for market relevance. There is a pressure for MnA. It has higher cost, medium heavy oil company. They suspended dividends.
oil/gas
COMMENT
COMMENT
October 16, 2020
Large scale consolidation in energy. Hopefully there will be mergers and acquisitions. There is a management entrenchment problem. The boards or CEOs don't want to transact right now.
Show full opinionHide full opinionLarge scale consolidation in energy. Hopefully there will be mergers and acquisitions. There is a management entrenchment problem. The boards or CEOs don't want to transact right now.
COMMENT
COMMENT
October 16, 2020
He is bullish on natural gas with less swamping of the market from the US. Global demand is improving for LNG. It is his small cap pick. They are aggregating free cash to pay all debt and then pay dividends.
He is bullish on natural gas with less swamping of the market from the US. Global demand is improving for LNG. It is his small cap pick. They are aggregating free cash to pay all debt and then pay dividends.
oil/gas
BUY
BUY
October 16, 2020
Sold the stock a couple months ago and then bought back a 5% weight this morning. The stock has probably bottomed. The market wanted them to transact and when they did not execute, the multiple collapsed. At $50 oil, it will trade at 2.3x cashflow. The stock price could triple going forward.
Show full opinionHide full opinionSold the stock a couple months ago and then bought back a 5% weight this morning. The stock has probably bottomed. The market wanted them to transact and when they did not execute, the multiple collapsed. At $50 oil, it will trade at 2.3x cashflow. The stock price could triple going forward.
oil/gas
PARTIAL BUY
PARTIAL BUY
October 16, 2020
The Painted Pony transaction is immaterial in the grand scheme of things for CNQ. CNQ is a well-run company. It could probably double from here with their cashflow break even being at $27 for maintenance cap-ex. A very well-run and cheap large cap. He just prefers small cap.
The Painted Pony transaction is immaterial in the grand scheme of things for CNQ. CNQ is a well-run company. It could probably double from here with their cashflow break even being at $27 for maintenance cap-ex. A very well-run and cheap large cap. He just prefers small cap.
oil/gas
DON'T BUY
DON'T BUY
October 16, 2020
Shorting this has been a good play. There have been operational challenges and there were mine depletions. ESG forces are also a headwind. A well-owned company still being the largest in Canada. If oil prices inflect soon, Suncor will be a beneficiary.
Show full opinionHide full opinionShorting this has been a good play. There have been operational challenges and there were mine depletions. ESG forces are also a headwind. A well-owned company still being the largest in Canada. If oil prices inflect soon, Suncor will be a beneficiary.
integrated oils
DON'T BUY
DON'T BUY
October 16, 2020
There is debt load and the primary asset is not operated in Eagleford. The differentials have also shrank to 9$ today. The debt hurts them and the market does not believe in $50 oil. He would prefer MEG.
There is debt load and the primary asset is not operated in Eagleford. The differentials have also shrank to 9$ today. The debt hurts them and the market does not believe in $50 oil. He would prefer MEG.
oil/gas
BUY
BUY
October 16, 2020
At $60 oil, share prices should be at $2.80 (269% upside). Even without higher oil prices, the share prices have been so depressed that it is trading right now at 14% free cashflow yield at current prices.
Show full opinionHide full opinionAt $60 oil, share prices should be at $2.80 (269% upside). Even without higher oil prices, the share prices have been so depressed that it is trading right now at 14% free cashflow yield at current prices.
oil/gas
COMMENT
COMMENT
October 16, 2020
There were developments where activists are pressuring banks to no longer lend to energy companies. However, energy is one way for the country to get out of the debt problem and in his opinion this is even more reason to be bullish.
Show full opinionHide full opinionThere were developments where activists are pressuring banks to no longer lend to energy companies. However, energy is one way for the country to get out of the debt problem and in his opinion this is even more reason to be bullish.
oil/gas
BUY
BUY
October 16, 2020
It has a high quality asset base. Historically, it traded at a massive premium. Current natural gas and oil prices, it is trading at a 10% free cashflow yield. Because the stocks are beaten down, you can get a pretty good deal if you believe oil prices will strengthen.
Show full opinionHide full opinionIt has a high quality asset base. Historically, it traded at a massive premium. Current natural gas and oil prices, it is trading at a 10% free cashflow yield. Because the stocks are beaten down, you can get a pretty good deal if you believe oil prices will strengthen.
oil/gas
WAIT
WAIT
October 16, 2020
It was a past pick. He trimmed half his position today to buy Enerplus and another company. The CEO and board are quite timid when they should be more aggressive. They cut the dividends by 71%. There is no exploratory risk and is one of the more defendable business. A new CEO must be more aggressive.
It was a past pick. He trimmed half his position today to buy Enerplus and another company. The CEO and board are quite timid when they should be more aggressive. They cut the dividends by 71%. There is no exploratory risk and is one of the more defendable business. A new CEO must be more aggressive.
oil/gas
TOP PICK
TOP PICK
October 16, 2020
Profoundly undervalued. At current oil price, it is trading at 19% free cashflow yield. They should reinstate their dividend which they cut. At $50-$60 oil, it trades at 2.1-2.9x and at 38%-63% free cashflow yield. CPP owns roughly 30% of the company. (Analysts’ price target is $2.48)
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