Q: Can you comment on Strathcona outlook?
5i Research Answer:
SCR has declared its special $10 dividend which will be paid later this month (ex date Dec 22). It has also closed a small acquisitions. With the failure of the MEG takeover, we do think it will keep looking for further deals. It is a solid company for sure, but with insiders owning 78% it needs to increase its trading shares to get a better valuation. A deal for stock would accomplish this. Its balance sheet is strong and cash flow is solid. Production did fall this year with an asset sale, and results may be tempered next year by lower oil prices. But, we would consider it overall one of the better-managed companies in the sector. The stock is very cheap and we think it will keep trying to grow aggressively.