Investment Q&A

Q: bir and tou have had a big run. Is it too late to add or do you think there is more upside to natural gas stoccks? If more upside which stock or stocks would be your preferred play?

Q: Canadian Natural Gas producers seem wildly undervalued (to me anyway...) Checking my thesis here: Natural Gas netbacks are showing 40% increases over last year, and 2020 was almost 80% higher than 2019. Carbon sequestration makes maximum sense as an alternative revenue stream, and it appears at least one company (AAV) is doing just that. Valuation multiples remain very low (which is fine if one is going to invest) but it remains puzzling to me. Am I missing something? Or are all hydrocarbon stocks being re-rated (lower) due to ESG concerns? Are O&G stocks the new "Tobacco" stocks (this reference may dates me somewhat...) Any high level thoughts here to help me in decision making?

Q: The above stocks had good upward movement on Friday and wondering if was in response to aav report on carbon neutral technology ? Your thoughts for the future of this for aav and the natural gas industry? aav a buy?

Q: The only energy stock I have is ENB. Looking to add BIR around the current $2.70 ish price. Your comments would be appreciated, including preferred alternatives I should consider. Dividend not necessary.
Thank you.

Q: Hi 5i
The FCF that Birchcliff is projecting is really great. In the past it was considered a potential takevover candidate. Is that still the case and who operates in the same area that might be interested?
Thanks

Q: Please comment on Birchcliff Resources earnings.

thank you.

Q: What are your top 3 stock recommendations right now for purchase of Canadian energy companies predominately focused on natural gas exploration and production (ie. producers, not mid-stream players, and natural gas focus more so than oil). What is your rationale for each? Long term focus, dividend would be nice but not required.
Thanks - really appreciate all your good advice.

Q: Hi esteemed analysts of 5i. Love your work and advice.
Now that natural gas prices seem to be moving upward lately, can you suggest which of these 3 gas producers in Western Canada would be the best choice for buying today, and why?
Thanks!

Q: hi guys now that Biden has cancelled the keystone pipe line shall I still hang on to these stocks I have a lol of arx thanks larry

Q: May I please have three or four junior/intermediate gas producers that will benefit from the Kitimat LNG project if/when in is operational in 2023?
With appreciation.
Ed

Q: Can you tell me which stock is currently cheaper to buy and the price metric you rely on: Birchcliff or Keyera? I would like to get exposure to natural gas sector and based on Q&A these two companies seem to be your current favourites. Are there other significant differences between the two to factor in? thanks again - John C

Q: HappyNew year guys Ihave 13000 shares of this stock I don,t need the money so should Ikeep them i am only down about $800 or is there something better to get into Thanks

Q: It appears that natural gas is the coming into favor over oil in Western canada. ie power plants in Alta and the lng pipeline to Kitimat. Your thoughts on the stocks that will have upside in this sector. Arx, bir, aav, key, tou, aav, come to mind. Your thoughts

Q: On the supply side, dry gas prices are low and drilling activity has been scaled way back (storage is full to the brim).

On the demand side, the potential for a cold winter on the coasts, increased adoption of EV, conversion of coal to gas, vaccine driven Covid economic recovery, etc.

It looks like there's potential for a pinch in the market on the price of gas. If that was the case (I'd like to hear your thoughts on that), what companies would see the most positive response in share price?

Q: Good morning 5i team,
Which would you buy PEY or BIR ?
Thanks,
George

Q: Can you please comment on recent quarter results and what the future holds for this stock if natural gas prices hold at these levels. tph has a hold and $2.00 price target. cheers and thanks

Q: I have both in my RRIF. BIR has moved very well last 2 weeks and I am making small amount of money. Still down with TOU . Should I keep both for time being, have held them for quite a while. I could put the money in another stock, or top up TOU for dividend.With topaz starting maybe TOU would increase DIV sometime in future. Tks for helping in past

Q: I own all of the above. Natural gas seems to be in favour at the moment and getting a nod for the future by a number of analysts. Which of these three has the best upside ? Thanks

Q: 1. what is your 1-2yr prospect for natural gas price?
2. what are your top 5 suggestions for Canadian publicly listed companies that are pure conventional natural gas plays?

my reasoning for conventional natural gas is we can't rely on unreliable and difficult to store 'green energy' to supply all our needs and there is much less by-product natural gas from fracking for oil. As well, liquid natural gas imports into Canada/US from other countries results in a loss during compression/decompression stage along with difficult transport in specialized tankers - it makes more sense to produce in North America for local consumption doesn't it?

A related queston is what do you speculate the price of natural gas will be for the next 1-5 years?

Q: What would be your top 3 natural gas picks and why?