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Cenovus Energy Inc. (CVE)
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ARC Resources Ltd. (ARX)
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Tourmaline Oil Corp. (TOU)
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Whitecap Resources Inc. (WCP)
Q: With the price of oil going down, do you think that it’s better to hold natural gas stocks and sell companies that produce mostly crude?
5i Research Answer:
Not necessarily. Sentiment towards the oil sector is quite low, and so valuations are still attractive for long term holders. In addition, energy companies (on average) are in excellent financial shape, and most are buying back significant amounts of stock. Natural gas stocks we think are also attractive, but we would still prefer a mix of both rather than picking sides.