Investment Q&A

Q: I have no strictly energy companies and I am thinking of starting positions is TVE, MEG, and BTE. I would appreciate your comments on these as a good place to start building an energy position.

Q: Follow up to your answer to Charles , what companies have the best long life assets?

Q: Hi. What is your view of MEG's prospects in the next couple of years?

Q: what are the current annual percentages of dividend, debt and free cash flow yield for each of these companies. use as many question credits as needed

Q: Hi 5i,

Following Eric Nuttall's appearance on Market Call on March 4th this year, I invested roughly equal amounts in the above six oil and gas companies on March 7th. (Coincidentally, another 5i member posted questions about the exact same six companies that day.). As of yesterday's close, the results have been a mixed bag, ranging from TOU up 52% to TVE down 25%. Overall, though, up about 6% (not counting dividends).

My investing style is generally to buy and hold quality companies for the long-term, while this oil and gas play was intended to be a bit more of speculative. What is your current opinion of these six companies? Would it be wise to sell any now?

Q: Hi. I own these oil stocks and have to get rid of two or three. Which three would you sell first and in what order? Thanks Paul

Q: i am negative on above 5 companies. Do you recommend I keep all 5 or should I sell all or some, resp. sell and replace with other companies in the sector, such as Whitecap, Parex, SU and others?

I am primarily looking for growth.

Alternatively to energy companies what are the best Canadian growth companies you recommend. Thanks. Klaus

Q: Please rate these energy companies in order of your best choice for growth in the next 2 years.

Q: Eric Nuttal appeared on BNN on Friday. He is very bullish on both of these stocks. My questions 1) Do you still feel that there is a significant upside in oil stocks in general? 2) What are your thoughts on these two stocks 3) What is the better investment now - quality gas stocks or quality oil stocks

Q: Can I please get your outlook on the energy sector, and the holdings above- how would you rank them for a 1 year hold, would the ranking change for a 5 year hold?
There is the view that energy will come back to represent a larger % of the index again.

Q: In your answer to a recent question (Myron -June2) you rank MEG relatively low on upside potential, apparently well below CNQ and SU. Could you explain a little, please? thanks Jim

Q: I am thinking of buying these companies in my tfsa account in equal weights. Do you have any concern with any of these companies and would you be able to rank them in order of possible upside? Thank you

Q: Peter and Co, I am looking for a Canadian energy company that has good upside as well as large tax losses that could be used to offset any potential windfall taxes in Canada. I already have reasonable positions in CVE, VET, TOU and HWO.
With appreciation,
Ed

Q: On May 9th, there was a question from James about when MEG Energy might start a dividend. In their recent Q1 earnings report, they stated that once a debt level of $600 million was reached, which they expect by the 2nd half of 2023, 100% of free cash flow will be returned to shareholders. I would expect this means some combination of share buybacks and dividends.

In Q1, the company had approx $500 million of free cash flow, which is about $2.0 billion for a year at that rate. There are 307 million shares o/s currently, so that would equate to roughly $6.50 a share. If half went to share buybacks, then that would leave roughly $3.25 for a dividend, which would be about a 17% yield on the current share price. Of course, energy pricing could change significantly (up or down) between now and then.

Q: I have a small percentage in each of these companies, I would like to add to some or all can you tell me in order of preference you would suggest I add them.
Thanks, Dorothy

Q: Is there any indication that MEG will institute a dividend?

Q: Would you give us your thoughts on their 1/4ly report, thanks.

Q: Can I get your top picks for Small and Mid sized Canadian Growth Oil stocks for the next 12 months?

Q: Which Canadian companies will benefit when the trans mountain pipeline starts up.
Thank You.

Q: I'm looking for some Canadian companies that can benefit from the current oil shortage in the world. My research has turned up CJ, ERF, MEG, and NVA. Would you please rank them best to worst in terms of potental upside. As you can see, I'm looking for good growth going forward. If you can think of other possiblilties I would appreciate your choices. Also, do you see any major flaws with the companies I've indicated I would appreciate your opinions.