Investment Q&A

Q: I am thinking of selling my Vermilion shares VET and using the funds to buy shares of MEG since I want to keep my oil and gas exposure at the same weight (about 15 per cent of the portfolio.) This swap of oil producers is predicated on that MEG is already returning 50 per cent of FCF to shareholders while VET is only returning 30 per cent. According to both compannies corporate presentations both companies play to allocate more FCF to shareholders when lower debit levels are achieved in 2024. I liked VET from its exposure to high gas prices in Europe but when Ireland introduced a windfall tax on VET it definitely took a shine off of Vet's future. What do you think of changing VET for MEG. I also have some CPG, CJ, TOU, WCP, and BTE so I don't want to add to them.

Q: Which names are your favourite heavy oil producers in Canada?

Q: i own the above stocks.i want to add one more, your favourite mid to small cap oil company for growth. dave

Q: I have shares is a few energy companies. TVE is my largest holding and is the poorest performing. I am thinking of selling TVE and buying MEG in place. What difference do you see in the 2? Is there more risk with one or the other? And of course what is of interest, is there more upside with one or the other?

Another option would be to add to some existing holdings: CVE; ATH; AOI.

What would you see as the best course... continue to hold TVE, switch to MEG, or add to the others?

Thanks for your excellent service.

Q: Good morning,

I currently own all four companies in the energy portion of my family portfolio.
That being said, I'm in the red and very disappointed with FRU.CA's performance of late and looking at selling FRU.CA and with the proceeds, adding to my existing positions of MEG.CA, CVE.CA or TVE.CA.

Q1. What are your thoughts on FRU.CA

Q2. Which of these three stocks (MEG.CA, CVE.CA or TVE.CA offers the best risk/reward at this particular time,

Q3. Is there another energy stock that you prefer and would wholeheartedly recommend.

Thank you and I'll await your response.

Q: Over the last year MEG is up 27% and TVE is down 20%. I am down 26% on TVE. Is a switch from TVE to MEG a good trade to recover my current loss on TVE? Thank you

Q: My only energy holding is ENB, and I'm thinking of replacing it with something with greater growth prospects. Dividends are not too important. Are there any of the stocks listed you would suggest at this time? (Or any others??)

Q: Meg Energy recently reported. Your thoughts on this most recent quarter results. As always, thanks
Robert

Q: Looking at the chart I see that MEG generally peaks out around here, just under $24. It touched there last summer and now 3x this year. The last earnings report was early May and its up almost $4 from then. Time to take profits or is it about to break out?
Thanks
Steve

Q: Amerigo, MEG Energy, Minera Alamos, and Interfor are, with others, some of the, to me (i.e. except for Interfor) obscure company holdings of the very successful AEGIS Value fund in the U.S. Are you aware of any other commonalities among these holdings that might make them interesting?

Q: Please compare P/E’s, cash flow yield , balance sheet leverage and future growth. How would you rank in order of most preferred to not interested. Ty.

Q: With the energy sector on pause, is precious metals a good replacement, or can you suggest another. I generally buy on momentum.

Q: would appreciate your short term outlook for these two companies!
Ed in Montreal

Q: MEG Energy Earnings just came out. What do you think of their numbers last quarter?

Q: I own CNQ and MEG and am considering buying Tourmaline as its been hit so hard and should do better in the future. What do you think? Is owning MEG and Tour too much nat gas?

Q: The chart for the above is interesting. Basically there has been a 10X return since the covid low several years ago. The oil price hit $115 in May 2022, but the share price for MEG was only 20% higher than it is today, with the oil price at a little over half of what it was in May 2022, at about $68.
Many expect oil to regain some footing here and rise, maybe to $100 or more over the next few years.
But from this price history, we should really only get about 20% higher on MEG shares even if the oil price climbs back to $115 right? Why would shareholders want to pay so much more for MEG shares with oil at $115 in the future than at a previous date where oil was at $115? It would seem that at the future date of $115 oil, we would be even closer to a renewable economy than we were in 2022 and therefore be even closer to the decline of an oil based economy, making the MEG shares less valuable? Thanks.

Q: Just a quick question. I have a TFSA and hold a few volatile companies that I like to trade. I have followed technical analysis for 40 years. I have read that a YFSA account can be taxed if there is too frequent trading. Is this true? And at what point will the trading be to frequent?
Thank You

Q: Peter, it is my understanding that all three of these companies now have very low debt. They also have a very low p.e. They also have a very long reserve life. Is it true that renewable energy is many years away from being a viable solution for energy for the world? The share price for renewables has certainly shown that. ie. RNW Algonquin.
Is this huge drop in these energy companies due to the no more piplelines and no case for LGN, the Trudeau effect. Are these three companies still overpriced?? What would be a good entry point?? Is not a 9.5% div on Peyto the same as a 12% GIC after tax is calculated?? I would like your opinion on these questions Thanks Ken

Q: JOY
FRU
ATH
BIR
PXT
TCW
WCP
TVE
ARX
CPG
VET
ERF
MEG
BTE

Which three of the above fourteen oil & gas stocks would you sell first to bring my sector allocation back to my normal weight? This is assuming 100 WTI oil in 2023. Could you also provide a brief reason for each of the three stocks that you would get rid of first. Thanks.

Q: As tourmaline has run up quite a bit I am hesitant to buy at this price, Considering MEG as an alternative buy.
Would you consider MEG as a good buy or stick with TOU?
Thank you