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red sky · 01-04-2018, 03:23 PM

With AECO and WCS prices in the gutter I would suggest that companies that do not have exposure to US price points will struggle. If you want to play the sector you might as well invest in strong US oil companies like EOG, PXD, and FANG.

A rising loonie with depressed Canadian energy prices does not make for a good recipe. The industry as a whole will and is starting to change. As prices go up and companies are generating free cash flow, you will start to see share buybacks and increased dividends versus increased capex and production growth. The return on capital, even when oil was $100/bbl, did not really offer a value proposition. Until that formula changes, the sector will remain cautious and tempered.

01-04-2018, 03:23 PM	#3802
red sky #1 Goaltender Join Date: Apr 2006 Exp:	With AECO and WCS prices in the gutter I would suggest that companies that do not have exposure to US price points will struggle. If you want to play the sector you might as well invest in strong US oil companies like EOG, PXD, and FANG. A rising loonie with depressed Canadian energy prices does not make for a good recipe. The industry as a whole will and is starting to change. As prices go up and companies are generating free cash flow, you will start to see share buybacks and increased dividends versus increased capex and production growth. The return on capital, even when oil was $100/bbl, did not really offer a value proposition. Until that formula changes, the sector will remain cautious and tempered. Last edited by red sky; 01-04-2018 at 03:28 PM.