RE:National Bank Lowers Targets I'm a little surprised with the size of the cut for CVE ($7) . I thought that drops in WCS could at least be mostly captured in the downstream segment of the business OR ELSE WHY GO ON THIS CONTINUED BUYING UP OF REFINING ASSETS???
In addtion, CVE will be (slowly) expanding production with alot of monies already spent. CVE's offshore oil production is also back-stopped at brent like prices while offshore gas has alot of contracts at multiples of NYMEX giving some of the highest netbacks in their portfolio. Lets not forget that their 100% FCF payout is (supposedly) around the corner allowing for even more share buy backs..
SO WHAT GIVES?? MEG only drops $1 but SUNCOR also cut big ($17), IMO also cut etc .it looks like these guys think gasoline demand will fall materially hurting the intergrated producers on their refining CRACK SPREADS..thoughts??? dwdc