Copper, like oil, is taking a BIG hit due to China
Which Credit Cards to sign up? >> Jerry's Mega Thread of Credit Cards Q&A
Feb 3rd, 2020 5:29 pm
Feb 3rd, 2020 11:06 pm
this could be the bottom. I went long UCO today at 13.74.cartfan123 wrote: ↑ No offence, but I use you as a contrarian indicator. Hence I might have to look at buying back into energy names....which I have been out of since the pop off the Saudi attack in the fall.
Feb 4th, 2020 3:03 am
Feb 4th, 2020 5:19 am
Feb 4th, 2020 10:42 am
Feb 4th, 2020 10:45 am
My view is that the Transmountain pipeline is a game changer for Canadian energy. Currently, nobody seems to care about energy because energy is dead and apparently Tesla is the life of the party, but they are going to care soon as the energy sector has been underfunded (oil discoveries outside of shale basins) and all focus has been on American shale which has been the worst thing in the history of oil investors. The world likes to forget, but we consume over 30 billion barrels per year, which is an incredible amount of oil that needs to be annually replaced and those numbers are still growing y-o-y.MrMom wrote: ↑ Re: @chriskanaan
I can't believe I'm quoting the CBC, but this is most comprehensive current article.
Federal Court to decide fate of Trans Mountain expansion | CBC News
"The court will issue its decision at 1 p.m. ET."
https://www.cbc.ca/news/politics/federa ... -1.5450748
Feb 4th, 2020 1:18 pm
Feb 4th, 2020 1:42 pm
I would add that it's not a surprising victory unless of course you are the BCNDP who are still wondering who switched out their toolbox with a Fisher Price one. The original court case on consultation didn't spell out what additional consultation was needed... just that more consultation was needed and that was done in this case.MrMom wrote: ↑ For the full article click on the URL,
In a major victory for Trans Mountain, Federal Court dismisses Indigenous appeal of project's approval
https://www.cbc.ca/news/politics/federa ... -1.5450748
"The Federal Court of Appeal has dismissed an appeal by Indigenous groups challenging the federal government's approval of the Trans Mountain expansion project — clearing yet another major legal hurdle for the long-delayed $7.4 billion project, which will carry nearly a million barrels of Alberta oil per day to the B.C. coast."
Feb 5th, 2020 9:42 am
Feb 5th, 2020 10:12 am
Feb 5th, 2020 10:19 am
Feb 5th, 2020 10:30 am
Feb 5th, 2020 10:31 am
I'm not expecting any fireworks for 2020 or even 2021 until possibly late 2022 for HSE which works in my favour as I'd like to build a sizable position in the next 2 years as I'm not seeing any opportunities in my normal bread butter investments which is normally more concentrated in residential homes in GTA. Market in the GTA is just too expensive and builders have become far too greedy so I'll be putting more cash into stock investments for the next few years than normal. Not finding much value out there that I'm interested in but HSE is certainly one that I do see as truly undervalued. I'm not even considering the company being taken private, this would be a nice of course but I'm not putting too much of my investment reasoning behind this event. It makes sense to me to do this before the completion of their bigger rebuilds/projects but that's all up to LKS.
Feb 12th, 2020 6:28 am
Feb 12th, 2020 10:07 am
Feb 12th, 2020 11:32 am
and CVE -5% after thatMrMom wrote: ↑ Cenovus reported Q4 and FYE results this morning. They continued to focus on strengthening their balance sheet.
Add: A environment where WTI is at $65 and the WCS differential is $24 is better than the current environment of WTI at $50 with the WCS differential a little over $17. $65-24 > $50-17.
https://www.cenovus.com/news/news-relea ... mance.html
Cenovus delivers strong 2019 financial and operating performance
Company generates $2.5 billion of free funds flow; reduces net debt
"Cenovus continued to make significant progress on its deleveraging plans through the past year, repaying approximately US$1.8 billion of its unsecured notes and reducing net debt to $6.5 billion by year end, compared with net debt of approximately $8.4 billion at the start of 2019."
Key fourth-quarter and 2019 developments
• Reduced net debt by a further $289 million to $6.5 billion in the fourth quarter
• Generated cash from operating activities of $740 million in the fourth quarter and $3.3 billion for the full year as well as adjusted funds flow of $678 million in the fourth quarter and $3.7 billion for the full year
• Reduced year-over-year upstream operating expenses through focused cost leadership
• Exceeded crude-by-rail shipping target, achieving 106,000 barrels per day (bbls/d) loaded in December
• Achieved fourth-quarter oil sands production of more than 374,000 bbls/d, up from 355,000 bbls/d in the third quarter of 2019 mainly due to reduced curtailm
Feb 12th, 2020 12:22 pm
Cenovus Energy posts surprise loss on weak refining marginsjackrabbit000 wrote: ↑ Why does the world hate this stock so much? It doesn’t matter what news comes out or if the oil price goes up, this stock goes in one direction...down.
It looks like the CVE seller, post EIA data, is out of the way. Back to flat on the day.
Feb 12th, 2020 2:02 pm
From the looks of it, CVE can pay off over $1 billion in debt per year so that $6.5 billion will be gone in less than 6 years (sooner if oil prices go back up or if they use their interest savings and pile that into debt reduction). But that's the same store with the vast majority of Canadian oil pays.... I suspect that the we will soon see a very cash flushed industry with low stock prices and that typically means either massive returns to the shareholders in terms of dividends or buybacks OR massive diversification into other sectors by these companies as they try to find uses for their cashflows that will add value to the shares.
Feb 16th, 2020 4:39 pm
Feb 16th, 2020 11:55 pm
I believe CNRL is still the lowest cost producer, but I'm not sure on break even points. CNRL is also piloting a in-pit extraction mining opertations. The in-pit extraction process is new and can potentially reduce production costs. It also reduces the tailing ponds which is a big cost and liability.MashGhasem wrote: ↑ Could one of you fine folks please explain why Warren likes Suncor over all the other majors? I'm new to oil. I bought into Suncor before it was announced that Warren had increased his stake by 5m shares. Granted, Suncor only represents 0.015% of Berkshire, but when he wants to own oil, he always looks towards Suncor it seems. He had over 20m shares at one point. Then sold and bought back in and now he's increasing again.
My reason for buying in was simple: if they can be profitable at current prices, they have a chance over the next 10-15 years. All I care about is the dividend. At 4.8% starting yield, if I can get 7-8% yield on cost in the next decade, I'll be happy.
btw, who has a lower break even point? Suncor or Canadian Natural?