Q: Wti and Wcs are both down 15% over the last year but these are up 30%.Why the disparity? Thx
5i Research Answer:
TVE has traded better due to good execution as well as for its 3% dividend, which has been raised and has potential to go higher still. Its growth potential helps and it is also a possible M&A target. KEL is similar, though it has no dividend and its valuation is slightly higher. But it has a strong balance sheet and very good growth is expected. Note while oil is down, the TSX Energy Index has risen 6% in the past year.