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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: Here in the Maritimes where we have regulated fuel prices, the regulators have found it necessary to substantially raise fuel prices, especially diesel and heating oil, for several days in a row. I am assuming the same is true in the rest of the country. Since crude prices have been somewhat flat recently while distillate inventories have been reported getting tight, is it a good assumption that these higher fuel cost dollars are ending up as crack spread profits to oil refiners? If so can you name your picks of companies that will be benefitting from this?
Thanks
Gary
Read Answer Asked by Gary on May 02, 2022
Q: I assume that low oil prices will be a benefit to refiners. Which of these could benefit most from a return to air travel and cruise ship activity?
Read Answer Asked by James on April 02, 2020
Q: I have both MPC and VLO. I understand that VLO is purely a refiner and not hostage to world oil prices, but MPC does have some exploration and production assets.
1. Is my understanding correct?
2. If yes, to what extent are MPC’s earnings and cash flow DEPENDANT on oil prices? I am trying to assess the extent to which MPC’s prospects are completely out of MPC’s control.
3. Are dividends well covered?
4. Is interest coverage adequate?
5. Based on your view of each of these company’s prospects going forward, is each of these companies worth holding?
6. You previously (Maureen December 9) you identified MPC as a beneficiary of the new rule requiring ships to use more refined oil. Is VLO also a beneficiary?
Read Answer Asked by Adam on January 30, 2020
Q: I hold several oil and gas exploration & production (E&P) companies. On every one of them I have significant losses, as many people do. I also have two oil refiners: VLO and MPC. I am shocked to see capital gains on both. Do oil refiners not move down when oil prices go down? I didn't see CONSISTENT correlation so I suspect I may be doing something wrong. Thus I seek your insight and deep, deep thoughts. Are both these companies just refineries? Or do they have some exploration and production in their operations ?
Would you continue to hold MPC and VLO ? If you wanted to realize cash for deployment elsewhere, which one (IF ANY) would you sell-- and WHY please.
Thank you
Read Answer Asked by Adam on November 15, 2017
Q: I currently have half positions in these energy co.s & would like to move to full positions but am waiting on the uncertainty with the US to settle. It also appears that the OPEC production cuts are actually occurring to some extent but that they are only for a 6 month period. Given the US uncertainty & the OPEC situation I am wondering what the impacts might be on Cdn energy stocks & your thoughts on when to move to full positions, or whether the expiry of the OPEC agreement might be negative for Cdn energy? As always, thanks for your insights.
Read Answer Asked by Brian on February 13, 2017
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