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ARC Resources Ltd. (ARX $26.43)
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Tourmaline Oil Corp. (TOU $58.32)
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Expand Energy Corporation (EXE $96.78)
Q: Hello Team,
With LNG export a much more acceptable business in the US, would you recommend EXE. US ahead of TOU or ARX in Canada.
Thank You,
Barry
With LNG export a much more acceptable business in the US, would you recommend EXE. US ahead of TOU or ARX in Canada.
Thank You,
Barry
5i Research Answer:
We would consider EXE decent enough, but not better than TOU. It has a high degree of leverage, is more expensive and a lower dividend (no dividend tax credit also). It has a high expected growth rate, but has lost money in prior years. The last quarter was good and it is closely tied to natural gas prices. We would be OK owning this, but would not consider it better than the Canadian alternatives overall.