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  5. CNQ: what are your thoughts on this company please? [Canadian Natural Resources Limited]
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Investment Q&A

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Q: what are your thoughts on this company please?
Asked by carl on November 25, 2025
5i Research Answer:

OKE is an oil and gas midstream service provider. OKE offers a high yield, but the debt level is high for a cyclical business, currently standing at 4.4x net debt/EBITDA. In recent years, OKE has been aggressive in terms of acquisition activities. OKE has been running a highly leveraged capital structure over the years.
If investors want to bet on the energy sector, we think there are other companies in the industry that offer a more decent risk/reward such as CNQ, SU, HME.V. We are uncomfortable with companies operating in a cyclical industry that run a highly leveraged balance sheet.