Q: Thoughts please on the? Please no credit as this is in your balanced portfolio.Thx
5i Research Answer:
EPS of $1.48 beat estimates of $1.17 and sales of $12.55B beat estimates of $12.19B. Management raised its production guidance. Several analysts increased their price targets, and it is hitting new 52-week highs. We likt the momentum, it is generating a solid amount of free cash flow, repurchasing shares, issuing a dividend, and reducing its debt load. It reported strong performance across both upstream (production) and downstream (refining) operations. We like that it is executing in its integrated model (oil sands + refining). It trades at a reasonable valuation of 14X ofrward earnings, and overall we think things look good here.