RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:We are in green now I don't dispute that its a good recovery play. The leverage on the balance sheet which knocked down the share price so hard as oil crashed last march is also making it outperform on the way up.
I guess its just a personal preference thing, when I look at companies. In general, I try to find ones with less leverage whenever possible, particularly with stocks in a volatile sector, like energy. For producers I am currently holding SU and PXT. For midstream, I only have ENB. I also have a bit of play money in a couple of small and midcaps like ATH, MEG and ERF.
That being said, to each their own and good luck.
autofocus111 wrote: Chris OVV asset writedowns occured in 2020 due to lower oil prices. If oil prices stay low then yes reserves obviously take a paper hit (a real hit if there's no sector turnaround), so debt/assets tracks that. But if oil prices head up in 2021 (and that's what oil investors must consider and decide on) the asset base will see a re-adjustment upwards. The debt maturity profile is decent (talking about debt without looking at that profile is meaningless). Even if debt is currently on the high side, that can be rather quickly addressed with cash flow assuming there's a sustained period of higher prices. Upside here depends of course on what they've done with their 2021 hedge book in Q4. In Q3 I believe they had ~30-40% of 2021 locked in at ~$50 WTI. If they were confident in a recovery and held back on significant new hedging, then 2021 could shape up nicely if crude heads to and stays at 60+. Their Montney liquids rich natgas play is an ace in the hole awaiting completion of BC LNG export projects (only one major so far but enough to move the needle in three years or so when it comes online and I continue to believe others will follow). I would not be so quick to write OVV down. Sure it's a different business than integrated, but they have great Permian assets from ATHL and the NFX scoop/stack play can thrive in a higher priced oil environment (persoanlly I think we're headed there in a 1-2 yr timeframe).