Investment Q&A

Q: I am asking a question about Meren (MER) but perhaps I should still call it Africa Oil since I am not sure when the name change will actually happen. Meren is committed to paying $25 million in dividends per quarter and with the current share count and share price that works out to about an 11 per cent dividend yield. Meren's only producing asset is deep water offshore Nigeria and their other plays are still speculative. Last quarter Meren was able to pay the substantial dividend AND pay down about $160 million in debt. I was impressed but I noticed they received about $5 premium on Brent pricing for their oil (about $79 per barrel as per the average of $74 average for the quoted Brent pricing). How did they get a premium for their oil? Hedging? Superior grade? Luck? Obviously this quarter their selling price is going to be lower but management seems to think they can still pay $25 million in dividends? Are they hedged to protect their selling price? If so, how many quarters are has Meren hedged their oil sales? Meren is an interesting company and the fact that the Lundin family are major investors does give Meren some pedigree in my opinion. What is 5 i's take on Meren/Africa Oil? I guess if one wants a high dividend payor in the oil sector there are lots of choses in Canada, such as cardinal. In your opinion how does Meren stack up against oil companies that produce in Canada?

Q: BEP hit an air pocket today may 22nd with a drop of 4.5% at the time of writing. The only thing I found that could explain it is Trump's "Big and beautiful" tax bill that, it seams, cancels the clean energy incentives. Do you think the drop is warranted or is it mostly a Mr. Market knee-jerk reaction? -- It seams to me BEP's international diversification should have cushioned the incentives cancelation.

Q: I understand that the U.S. house reconciliation bill includes some negative wording re clean energy tax credits and this is a possible reason for BEP to be down in today's trading.
I'd appreciate your evaluation of this - is it a major risk for BEP?

Q: Hi 5i Team,
Recent energy and infrastructure M&A (e.g., Parkland-Sunoco, MEG-Strathcona, Enbridge-Brookfield) signals consolidation, driven by Carney’s "pro-energy" and P3 policies amid U.S. tariff pressures. What’s your view on this trend? Can you suggest 3–5 small- to mid-cap Canadian companies (excluding megacaps like Suncor, Brookfield) poised for growth or acquisition in these sectors? Please highlight key risks. Thanks!

Derek

Q: I know this is speculation, but if Strathcona raised their offer and closes the deal with MEG. Do you feel that the price of SCR goes down on the news, similar to WCP going down when it bought Veren. The purchaser tends to go down because they are taking on debt, or diluting, etc while the purchased goes up because of a premium on the purchase price. I'm just wondering if it makes more sense to wait on the news of the deal to finalize. One outcome being they get MEG at a higher price, and their share price pulls back a bit due to the integration risks etc. OR the deal falls through or another company gets MEG and SCR price still goes down on the news for losing the deal.

Q: Which one of these two would you expect to perform better by May,2028?Thanks.

Q: I have a question prompted by recent headlines (sorry, a rather unsophisticated view of investing).....there appears to be ongoing negotiations between the USA and Iran, with a suggested that some sort of agreement can be reached on nuclear stuff, with the result that Iranian oil will no longer be sanctioned. Some commentators talk about the oil market being flooded with the world price of oil dropping significantly. Do you see that drop in price as very likely? Wouldn't that bring the stock price of Cdn oil producers way down? Is it time to dump shares in oil stocks (I am under water now and this would only get worse). Many thanks for your excellent service.

Q: Globe and Mail had a list of "Nine Energy Stocks Poised for Future Growth" On Number cruncher, I did my own personal screen and liked these 3 Civitas(CIVI), Mach Natural Resources (MNR) and Murphy Oil (MUR). What are the metrics you like about these companies and what are the metrics you don't. 5 years earning growth, P/S sales, dividend yield, debt, book value , insider ownership and management. Thank you.

Q: Hi Team,
Would it be a stretch to buy Meg shares today on the speculation that another considerably higher bid will come in? Weighing the odds here; could be some easy money to be made here.

Thanks ,
Shane

Q: What do you think of their last earnings report? I am still holding even though i am down 8% on my holdings. Would you please give me your thoughts on buy sell or hold?
What are your thoughts on the $65 million term loan to finance their erosion control investment?
Thanx as usual
Gary

Q: Can you provide your current view of this company. How strong is the management team. Could this possibly be a multi bagger over the long run. (Understanding that market it operates in as well as price of the barrel)

Q: WHAT IS YOUR OPINION ON THIS STOCK - HAS A DIVIDEND YIELD OF OVER 15% - HOW SAFE IS THE DIVIDEND

Q: Peter and His Wonder Team
There quarterly results look strong...Please give me your prognosis for MATR:CA. In other words is it a good buy in terms of growth and valuation or am I missing something?
Thanks for your objective and professional opinion which is always helpful.

Q: Good morning,

Thoughts on SOBO earnings?

Also - any view views on dividend growth plans, or too soon to say?

Thanks as always. You guys do awesome work.

Q: ARX is approaching all time highs and yet TOU seems to have no upward momentum at all. I have been hearing for the last few years that TOU is a premium gas stock and the new LNG plant would offer a big boost to the company. With the LNG plant nearing completion I was expecting TOU to start a move upwards. What is happening? Which of ARX & TOU will benefit the most from LNG Canada?

Q: Good morning,

On May 5th the company announced that it has agreed to a takeover by Sunoco. The terms of the deal is cash and .295 shares of the new entity Suncorp.

My questions are two fold.

1. Is this new company, the old company renamed, or is this a spin off of the old company?

2. Assuming the deal goes through on June 24, how does the $44.00 price for each Parkland share work out, if the value of Suncorp is lower than the price of SUN at the time of the agreement?

3. That being said, do you expect the share price to rise to the value of the offer made, as the date of the vote nears?

4. Would you sell PKI if it gets to $44 or keep the shares of the new company?

Q: Which of these two pipelines will benefit more from LNG Canada commencing operations?

Q: Can you comment on the prospects for SCR in light of its recent bid for Meg?

Q: I currently have received my WCP shares in my brokerage account for the takeover of my VRN shares but I read as part of the takeover VRN would pay 1/3 of its quarterly dividend to shareholders for the April month. I can’t find what date this dividend will be paid to VRN shareholders. Can you please advise?

Thanks in advance.

Q: Good morning,

Q1. What are your thoughts on Strathacona Resources recent offer to purchase MEG?

Q2. Do you consider Strathacona's initial offer reasonable and what is the likelihood of MEG accepting Strathacona's initial offer?

Q3. What is the likelihood of another company joining the bid for MEG?

Q4. For holders of MEG, do you recommend selling on the news now and taking profits or waiting for a potentially better offer as MEG considers the current offer that may not be accepted and cause the MEG's stock price to drop back?

Thank you and I'll await your response.

Francesco