Advertising
COMMENT
Bull run for energy stocks. This cycle is more pronounced because of the issues in Ukraine. In March 2020, we started a new energy bull market, based on the interest in renewables and EVs. We needed to find a lot of lithium, copper and nickel, which would need a lot of capex and a lot of fossil fuels. With cutting off Russia from selling oil, we're in a super-cycle for commodities that probably has 4-5 more years to go. Money will have to be spent to bring on natural gas and LNG. Since March 2020, crude oil price has gone up over 4x, nat gas even higher, and S&P TSX Energy Index over 5x. So it's been a fabulous sector for investors.
Unknown
COMMENT
Bearish on price of oil? He's cautious. Historically, when you have these very powerful bull markets, you have corrections along the way. We'll see record oil prices 4-5 years from now, we've had a fabulous run, and he sees the likelihood in 2022 of $150 US a barrel for oil if weapons of mass destruction are used and Russia is prevented from selling oil and natural gas. He sees a recession ahead. CPIs and PPIs are really high. Central bankers are raising the price of money and removing the liquidity. Don't fight the Fed. He sees an economic slowdown by Q3, and that's when the higher price will end as we try to beat inflation up over the next couple of quarters.
Unknown
BUY
Done exceedingly well, near record highs. Still has a long way to go. LNG Canada will benefit it. A lot of drilling will have to happen in Alberta and BC to bring on significant new volume for the export market. A core name for your portfolio.
oil / gas
BUY
Focused on nat gas that's a big beneficiary of LNG. A 9-bagger from March 2020. Great strategic acquisitions. Only cloud on the horizon is the BC First Nations issue. One of the best managed in the sector.
oil / gas
WEAK BUY
Focused on making its environmental footprint as positive as it can be, and the team has done a good job. Paying down debt, and once it does that you'll see moderate growth and shareholder returns.
oil / gas
BUY
One of the largest fleets of generation 3 and 4 deeper coil tubing. Two businesses: coil tubing and tools. Both are being run efficiently. Margin pressure in the sector. Great little story that will be a big beneficiary of LNG drilling. No debt. 5-year bull market target of $3. 2023 will be a pivotal year in the LNG sector.
oil / gas
HOLD
Team has done a good job of building and repositioning the company. Started a dividend, paying down debt. More free cash will let them grow the business, do tuck-in acquisitions, and increase shareholder returns such as a special dividend.
oil / gas