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Suncor Energy Inc. (SU)
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Enbridge Inc. (ENB)
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Canadian Natural Resources Limited (CNQ)
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Tourmaline Oil Corp. (TOU)
Q: Hello, we have a full position in CNQ (5%) and SU & TOU (3% combined). We also own ENB (6%). We are considering to reduce our weighting in Energy sector. We like CNQ and ENB, for their respective merits, at the two ends of the spectrum being Growth and Income and relatively stable history of stock performance. If you have to choose to sell/trim between SU and TOU, what would be your approach - Equally trim from Both or Sell one of them in full ? Based on current and likely scenario of Oil and Natural Gas prices and their balance sheet and growth/income prospects.
Thank You
Thank You
5i Research Answer:
Without getting personal, we would prefer to sell/trim SU/TOU eeually. In addition to better diversification than just selling one, TOU, as a pure producer, is different than the other two. It is more gas focused, should have much higher growth, and is one of the best-managed companies in the sector, trading at a cheap valuation.