Investment Q&A

Q: Further to Gordon's question 01 Sep any projections to when CVE and CNQ will each reach their debt limits and start returning the profits to shareholders (divs or buybacks) ? Thank you.

Q: Hi 5i
Canadian Natural-CNQ said when $10B of net debt is achieved the company will return 100% of free cash flow to shareholders. Cenovus-CVE said when $4B of net debt is achieved the company will return 100% of free cash flow to shareholders. In the company Q2 2023 financial results, CVE states their net debt is $6,367B. I am unable to find the the Q2 2023 net debt in CNQ results. Would you please explain CNQ net debt from their results. Thanks

Q: Hi,

What are your top 3 to 5 picks in Canadian heavy oil?
Eric Nuttall picked CVE/ATH/CPG. in his recent appearance on BNN. He predicts it is bit too early for the Gas plays.

You can add separately the companies in the States as well. Eric's focus is only in Canada. I guess that is his mandate.

Thank you.
Mano.

You may want to add the stock symbols as the stem in this this question depending on your answer!

Q: I identified 9 companies that out performed the TSX 60 plus 3 energy companies that I believe have a bright future. All 12 failed the MACD. 5 are trading at double digit discounts to their 52 week highs; dsg,shop,l,tou and cve. P/E range from 85 to 6 etc, etc. Please pick your diversified top 6 for a 5 year hold, with consistent profitability, no crazy volatility and suggest a great entry price. Thank you

Q: The above are my overweighted energy holdings. Can you please prioritize them as I have to reduce my weighting. Is there any I should exit. Again Thanks in advance.

Q: Hi Peter,

I am a bit underweight in the energy sector of my portfolio. I wish to increase my weighting in this sector by five percent. Which of the companies listed below would you consider holding over a five to ten period? Please provide the order of selection. Or would you recommend buying an ETF for this sector as a better choice from a risk-return perspective? If so, what would be your ETF best pick(s) be?

SU
CNQ
OXY
CVX
PSX
TTE
ENB
XOM
DVN
COP
SHEL
MRO

Thanks

George

Q: Hi Team, we own all 3 though SU is the clear laggard; why is that ? In the next upswing for the group would you expect continued relative performance ? and would you swap out SU ? For who ? Thank you.

Q: Hi,

CNQ has stated that once they reduce debt to 10 billion they will then return 100% of free cash flow to shareholders. How do they arrive at this number of 10 billion. Why not 5 billion? Or even better, why not reduce debt to zero then return 100% of FCF to shareholders?

Q: Hello, we have a full position in CNQ (5%) and SU & TOU (3% combined). We also own ENB (6%). We are considering to reduce our weighting in Energy sector. We like CNQ and ENB, for their respective merits, at the two ends of the spectrum being Growth and Income and relatively stable history of stock performance. If you have to choose to sell/trim between SU and TOU, what would be your approach - Equally trim from Both or Sell one of them in full ? Based on current and likely scenario of Oil and Natural Gas prices and their balance sheet and growth/income prospects.

Thank You

Q: Good morning team,
My only exposure to the energy sector is Tourmaline and I am thinking of adding either Suncor or Canadian Natural Resources. Can you please let me know which of these two you think would be the better choice and why. If you think there is a better choice to diversify my exposure please let me know.

Thank you,
Paula

Q: Hi 5i Team,

I am looking to create a dividend portfolio of 15 positions yielding around 6%. My plan is to weigh these positions equally in a non-registered account. A good number of these equities are in your income portfolio but I just wanted to get your opinion if you would swap any of these out or add anything else?

Telus
Enbridge
CNQ
TRP
MFC
BCE
TD
SLF
A&W
BEP.UN
BNS
Acadian Timber
Fiera Capital
CPD
CVD

Thanks in advance for your help!
David

Q: Energy is a small portion of my overall portfolio. TVE is one of my larger holdings but it has lagged other energy names in the past few months. Do you still like TVE and should I be adding to bring my average cost down.

What are your three favourite Canadian Energy Names in current market?

Thanks
Tim

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: I'm generally underweight energy and was thinking of averaging down on TOU and ENB and starting a position in CNQ.

I'm a bit hesitant with ENB.

Any concerns? Or anything I should be aware of?

Thanks,
Robert

Q: Hi, Energy sector has witnessed a sharp sell off last week, with market and decline in Oil prices. Recession worries seem to be growing higher and with ECB sticking to 0.50% rate hike, market seems to be expecting Fed to stay course with its hawkish stance, despite recent turbulence in banking sector. Some large Energy traders are reported to have lightened their positions significantly, early in the week. We as well as most of 5i members are simple retail buy and hold investors and do not have access to advanced tools/money flow and other expertise.

With the recent market backdrop in the sector, and Oil/NG prices flirting with new lows, has your view, in terms of maintaining about 10% weighing in the sector, changed ? Or, do you believe that market concerns are of short term in nature and there is value and a strong case to remain invested in the sector for say, at least 12-24 months ?

Mr. John O'Connell of Davis Rea was on BNN, warning viewers to stay away from the Energy sector, claiming that cost of production of most companies is higher than current prices. (which appears to be a questionable claim). On the other end, there is Mr Eric Nuttal, an expert in the sector with $2 Bln AUM, with completely opposite views.

Thank You

Q: I've been eyeing Canadian Natural Resources especially light of a great 2022 and Q4. I'm underindexed on energy in our portfolio and if there was one single oil and gas company in north american to invest in for a mix of income and growth any other names you suggest and how does CNQ rank amongst those?

Q: Kindly comment on the CNQ results just released this morning. Thanks.

Q: I am down slightly on Aritzia and like it for the long term. I usually like to buy and hold but feel this is going to be a very volatile year for consumers. My concern is the shorter term outlook as the rising rate environment is likely to place increasing pressure on consumer discretionary stocks. As a 2023 move I’m considering selling ATZ, with a look to repurchasing when rates start coming down (who knows but perhaps later this year). In the short term, I’m considering trading ATZ for a dividend stock in the energy sector such as CNQ or ENB. Could you please evaluate this strategy, based on projections today. Essentially, which position do you think will result in the largest gain by the end of 2023? Thanks so much for your insight.

Q: Hi Team,

ENB, CNQ, SU are about 7.5% of my CAD portfolio. Is it ok to hold both CNQ and SU or are they too similar? If they are too similar then which other stock should replace one of these? My investments lean towards growth and dividend growth.

I have held Visa for over two years. I was hoping it will benefit from post panademic opening. So far it has done little. On valuations it appears overvalued. So do other payment stocks. Any suggestions?

Thanks
RR

Q: Hello Peter & Team,

With global liquid fuels production expected to increase by over a million barrels per day in both 2023 & 24, would you be bullish on new positions in the O&G sector. And if so, which would be your recommended name(s) based on growth with some dividend?
I am considering BTE & CNQ.

Thanks for all you do?

Gord