Chinook Energy Inc. Common CNKEF

TD Securities suspended coverage

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Dated November 2016 TD Securities Chinook Energy Inc. (CKE-T) C$0.51 Suspending Coverage Juan Jarrah, CFA, P. Eng. Dustin Besaw, CFA, (Associate) CKE We continue to like the company's Montney growth prospects and balance sheet strength, but our current gas price assumptions in combination with relatively higher-cost legacy production result in slim cash flow margins. We could see Chinook eat into its cash surplus in the short term without the potential for growth assets to contribute lower-cost production to the corporate mix.