Q: I have a bit of an overweight position in TVE at 10%. Do you think it has a lot of exposure in the event of the straight reopening? I noticed last year TVE increased while the price of oil declined. Thanks.
5i Research Answer:
TVE is growing production, and this helps balance out commodity-price swings. Still, a very large majority of production is oil, particularly heavy oil. If oil retreats to $80 or lower, the stock will no doubt take a hit. The company's break even oil price is about $35. We can't comment on personal position sizes, but it is still a relatively small company in a highly-cyclical industry, and we would take that under advisement.