Q: Hello Peter & Team,
Can you please provide an update moving forward for WCP considering the recent declines in Oil. Sell/Hold/Buy
Thanks for all you do
gm
Can you please provide an update moving forward for WCP considering the recent declines in Oil. Sell/Hold/Buy
Thanks for all you do
gm
5i Research Answer:
The sector of course is sensitive to commodity prices, and WCP is flat on the year. It is quite cheap at 9X earnings. The 7% dividend is attractive and payout ratio attractive in the 25% range. The balance sheet is OK, even after the giant VRN acquisition. Production rose 65% in the Q2. WCP plans to hedge 25% of production and has said its leverage does not prevent more buybacks. While the sector outlook is mixed, we would consider WCP one of the better names in the sector, certainly.