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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Hi 5i
WRT howards question on takeover targets, what percentage would you expect to effect a successful acquisition of either of these two....how would determine this, back of envelope calculation?

What was the chord offer for ERF

Thx
Read Answer Asked by jim on February 23, 2024
Q: following chord buyout enerplus and several 2023 deals can you suggest/speculate
possible future targets , i am thinking wcp, tve, bte.
thank you
Read Answer Asked by howard on February 22, 2024
Q: With the prices of some oil stocks down significantly in the past 6 months, do you think that some of the larger companies (SU, CNQ, etc) would want to take over some of the smaller players at a nice discount? A bit speculative, but can you identify some of the smaller takeover candidates?
Read Answer Asked by Mike on February 12, 2024
Q: I own these energy stocks and some are on the plus side and others are on the losing side. I've been waiting for quite some time for the Chinese economy to take off, but it seems to go nowhere ? I would like to trim some of my holdings. Please place them in order of what you would keep down to some you would let go. Maybe you could code them as 10 being the best and 1 as being the worst. Thanks.
Read Answer Asked by Frank on January 30, 2024
Q: Hi 5I
Regarding anthony questions , Not withstanding that BIR is surely in the doghouse, is it worth a second look now and at what price would you consider it worth the risk/reward.

CEO stated in interview yesterday that the lower dividend was sustainable for next number of years....opinion? Is this the ceo responsible for reinstating initial dividend?


Thx
Jim
Read Answer Asked by jim on January 19, 2024
Q: Reading recent comments on Birchcliff Energy 5i didn’t think a dividend cut was imminent and you felt they would issue debt to fund the dividend if need be. Just curious as to the rationale for this opinion. Also, do you feel Bir is good buy at these reduced levels? Finally, In light of today’s dividend cut and significant drop is this company now a prime candidate for a takeover and if so then why?
Read Answer Asked by Anthony on January 19, 2024
Q: Would you be able to provide information on which companies are expected to benefit the most from exporting their natural gas through the west coast LNG? What is the expected timing for this benefit to show up in their financial results?
Thank you
Read Answer Asked by Gordon on January 10, 2024
Q: It has been a long while since I have owned Birchcliff Energy (BIR) and I was shocked to see it trading for less tham $6. The dividend yield is nearly 14 per cent. I understand that at 2.50 natural gas pricing that BIR has to use leverage to maintain the 20 cent per quarter dividend. I remember about a year ago BIR was debt free so I don't image their debt is that high. I also remember Jeff Tonkin saying that the dividend was almost sacrosanct. So I few questions. Is Tonkin still the COE or has he retired or stepped up to be on the BOD? Is the debt level of BIR still low? At 2.50 gas (I know BIR never used to hedge so I assume they are gettting spot pricing) how much debt per quarter must BIR use in order to maintain the current dividend and spend enough to keep production flat? Do you think they will resize, that is, cut the dividend? And if they cut do you thin they would do an NCIB and start to buy back the shares from their depressed levels?
Read Answer Asked by Paul on January 03, 2024
Q: I hold the following energy stocks: BIR, CNQ, CPG ,PPL, SU, TOU, TVE AND WCP.
It represents 12.2% of my portfolio. Is this a fair portion. too high , too low??
If to high what would you suggest to sell. Could you also rate these as for sustainability and return going forward.

Thanks in advance.
Read Answer Asked by John on December 22, 2023
Q: According to Graham's The Intelligent Investor one way to make money is to buy companies selling for less than book value. In previous responses 5i has said that book value can be somewhat tricky because while some companies have measurable hard assets others have a large amount of goodwill which is somewhat intangible and difficult to measure. I see that BIR now has a price to book value ratio of .69 suggesting that an investor can buy one dollar's worth of the company for 69 cents. I have two questions. First, is BIR one of those companies with measurable hard assets that are now underpriced? Second, is the massive dividend sustainable?

Thanks as always for your expertise and Merry Christmas to everyone at 5i.
Read Answer Asked by Richard on December 21, 2023