Q: I am trying to understand oil and gas pricing and how the war in Iran affects them. I get that oil prices will rise during these times. What I don't understand is (a) why local gas pump prices rose so soon (the gas in the ground at my local gas station was bought several weeks ago!); and (b) why does oil from the tar sands, for example, increase immediately in price when Suncor's customers, I believe, are largely in North America and therefore don't compete against Iranian oil? From a valuation point of view, is the price for oil and gas companies simply reflecting the windfall profits being made on both the sudden increase in prices and the subsequent profits that will be reaped, since prices never go down as fast as they go up? If the hostilities ended tomorrow, would you expect the share prices to drop by 30% or so, given how much they have increased since December?
Appreciate your insight (particularly on this complicated topic).
Paul F.
Appreciate your insight (particularly on this complicated topic).
Paul F.
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Canadian Natural Resources Limited (CNQ $67.39)
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Cenovus Energy Inc. (CVE $34.48)
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MEG Energy Corp. (MEG $30.89)
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Tourmaline Oil Corp Subscription Rcpt (TOUR)
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Enbridge Inc. 5.50% Cumulative Redeemable Preferred Shares Series A (ENB.PR.A $24.55)
Q: What are your thoughts on the current offer for Meg Energy presuming it goes through. If we keep Cenovus stock we would have a half position.
We also own an almost full position in CNQ and TOUR. Have a full position in ENB. Those last 3 are about 5% of our portfolios.
I'm mostly looking at this as providing me with more cash but might hold the half position of Cenovus if the future is bright. (I know you don't have a crystal ball!)
Would you keep the half position of Cenovus or instead sell Cenovus and use the cash to add more to TOUR or CNQ?
We're retired, conservative investors.
We also own an almost full position in CNQ and TOUR. Have a full position in ENB. Those last 3 are about 5% of our portfolios.
I'm mostly looking at this as providing me with more cash but might hold the half position of Cenovus if the future is bright. (I know you don't have a crystal ball!)
Would you keep the half position of Cenovus or instead sell Cenovus and use the cash to add more to TOUR or CNQ?
We're retired, conservative investors.
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Canadian Natural Resources Limited (CNQ $67.39)
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MEG Energy Corp. (MEG $30.89)
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Whitecap Resources Inc. (WCP $14.93)
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Athabasca Oil Corporation (ATH $9.75)
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Tamarack Valley Energy Ltd. (TVE $11.23)
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Tourmaline Oil Corp Subscription Rcpt (TOUR)
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Headwater Exploration Inc. (HWX $12.79)
Q: Hello,
I own the following O&G producers and this is about 12.5% of the portfolio.
CNQ 2%, Tour 2%, Meg 2%, TVE 2.5%, WCP 1.5%, HWX 1%, Ath 1.5%
I want to raise cash and would probably sell about half.
My view point is from a conservative, retired senior, but looking through next 2-5 years with these. I think the best ones to keep are CNQ, Tourmaline, Tamarack Valley and Meg - maybe sell off TVE if good gains over next year or two.
Would like your opinion on what to sell/hold.
Do you agree or perhaps would you reduce all evenly? (I prefer to manage at a few less stocks.)
Would you exchange any stock or have other other recommendations?
Thank you very much
I own the following O&G producers and this is about 12.5% of the portfolio.
CNQ 2%, Tour 2%, Meg 2%, TVE 2.5%, WCP 1.5%, HWX 1%, Ath 1.5%
I want to raise cash and would probably sell about half.
My view point is from a conservative, retired senior, but looking through next 2-5 years with these. I think the best ones to keep are CNQ, Tourmaline, Tamarack Valley and Meg - maybe sell off TVE if good gains over next year or two.
Would like your opinion on what to sell/hold.
Do you agree or perhaps would you reduce all evenly? (I prefer to manage at a few less stocks.)
Would you exchange any stock or have other other recommendations?
Thank you very much