Whitecap Resources Inc T.WCP

What now?

[DivChase]

I think finally there is some light shed on why this stock is a dog while it's historical dance partner CPG does very well.  Lots of talk about CPG debt is too high, blah blah.   They make debt work for them.   Thier acquisitions have been oil assets and oil prices are great.  They look to be at least GOOD for quite some time.  These assets ADD to bottom line   

On the other side,  WCP, trying to always keep pace with CPG production found themselves buying into assets other oil companies weren't interested in.  XTO is like an anchor with NG prospects in near to short term.  Maybe even long term depressed pricing. NG assets detract from bottom line.  

So, how does WCP dig out of this mess??   Sell all that NG headache.  Along with that sequestration plant headache.

[barneyj44]

Sell Natural gas  assets now , that doesn't make a whole  lot of sense. Canada Lng startup will take a lot of the glut out of the market, the big U.S  producers have throttled back production,. Were near or close to the bottom....

[Anschutz]

Not sure we're near the bottom, but agree with you that now is not the time to sell LNG assets.  This past winter was an exception. Next fall/winter we'll likely see an uptick in consumption and price.  

[goldens]

Not too mention the hot summer coming our way that will add to consumption. I think now is the time to be picking up LNG stocks. I think once the heat kicks in we will start moving higher. Just my opinion but I have added.

[DivChase]

This is why being a gassey oil company sucks.  Let's depend on something as unpredictable as the weather to try and make a profit.  And what if your guess about hot summer AND cold winter is wrong? sell it all and reinvest all back in oil.  Much less dependant on weather. Hopefully sell it for what you paid or take a loss, they are loosing money right now anyway.   my

[tylerreddick]

The problem is that there is a massive glut of gas in the US, and their LNG exports are dropping.

[barneyj44]

More like operational issues. Exports of liquefied natural gas (LNG) from the United States fell in April for a fourth month in a row, as the Freeport export facility continues to struggle with operational issues and outages, according to data from financial firm LSEG       cited by Reuters. 

[tylerreddick]

If you would simply check the gas flows to the LNG export plants, you would quickly see that it isn't just Freeport. Looks more like falling demand to me.

[jollynik6]

Tyler   Whats your view on Wcp   ,I believe you know your stuff

[tylerreddick]

WCP will be a buy at some point, but this summer/fall is going to be ugly. And if we don't get a cold winter, and oil drops as predicted, I would wait at least a year to buy in.

[Readytojump]

I take their predictions with a grain of salt. Predictions ( I call it attemped manipulation  ) have been and will be totally wrong time after time   How many times have markets performed a 360 through out history ??... predictions are all part of game .....IMHO??  - Never buy or sell based on predictions !! -Do your own DD... and lots of it !! -Buy on the dips if your looking

[barneyj44]

Grant does continue to purchase shares, he's now just shy of 3 Million shares, that's spells conviction to me. Meanwhile if your not a day  trader trying to catch the lows of the day and week you get paid a nice monthly dividend...

[Anschutz]

Agree. Trust no one. Energy is the most volatile sector for a reason.  This summer and fall even more so. Listening to BNN this morning about interest rates and mortgages. They had some pundit responding to viewer letters about concerns.  There was one in particular detailing how the viewer feels they were misled by Bank of Canada believing their comments in 2020 that interest rates

[Citizen13]

We had to inject money into the economy because of COVID .  But the BOC should have warned people by doing that and the supply chain issues it would cause massive inflation and DO NOT GO INTO MASSIVE DEBT.   Didnt say a peep . I knew it , they knew it but most people got caught off guard . And now what is their solution ?  Oh, cant pay for groceries, we'll send you money . Free

[Anschutz]

Agree. At some point though the question needs to be asked if weakening people financially was their objective.  For those that care to look, it's evident the globalist agenda is to do away with private property and force everyone to become renters.  Between BoC comments of the last few years and those of politicians, it looks like they want to drain people's weatlh.  It

[baranja]

One thing I know for sure,.. It is NOT what it it look like.

[baranja]

This is the time you buy Natty, not sell.

[MyHoneyPot]

Most of their production comes from the east, and that seems pretty much oil weighted, with carbon capture (CO2 Injection), secondary recovery, and new multi lateral well design.  CPG is not in the most Liquids Rich part of the montney, not like Kakwa (ARX), or Karr (POU).  I think what CPG did and is after years and years of drilling low productivity SASK wells, they made a desperate

[Anschutz]

I agree with all your comments regarding CPG.  As for WCP being cheap here, I agree somewhat.  Unfortunately I can see all Canadian E&Ps heading lower if WTI heads lower.  My analysis today is showing we could see WTI drop to below $70 in the mid term (ie, next 1 to 2 months).  

[baranja]

Me think,. Arabs and all other oil producing countries will now allow that.  They will most likely reject selling oil for US dollar if that happens and we will have shortages big time. I am sure they are sick and tired, when everything exploding in prices including gasoline, they are supposed to sell their precious oil fro next to nothing.  $80 is becoming nothing nowadays I am

[baranja]

... will NOT allow that...

[Anschutz]

Biden has been good for middle east producers.  They may be happy to assist in his re-election by accepting lower priced oil for a few months.  They can easily make it up in the 3+ years after. Sorry... not my intent to pee in the pool, rather simply offerring another view.  My goal is to make money and appreciate hearing all sides of the argument. Other than the obvious OPEC

[Seppelt]

"My sense is they would prefer Trump not be re-elected." I think, the Saudis would prefer Trump while the mullahs in Iran are praying for Biden. My bet is that the Saudis will extend their voluntary production cut of 1 million b/d beyond June. 

[Citizen13]

Trump has been bragging he will have the USA " drill baby drill"   . I support republican /conservative right leaning economic values but think he's an idiot as most people do. Everybody has that weird full of BS neighbour that you cringe seeing  walk up to you to talk . Because nonsense comes out of his mouth . That's the Donald.  Anyways,  does he really

[baranja]

He can drill as much as he want, but those holes are dry, and it is very expensive to drill when depletion rates can be 50%. Canada sould continue to expand TM pipeline even more, and build the one to east coast too.

[Seppelt]

Trump is an easy target for criticism. Any average dude thinks of himself as a smart comedian when it comes to making fun of Trump. But during his first term Trump surrounded himself with some great people, especially the Secretary of State Mike Pompeo. Under Mike, they starved Iran and many of its proxies, while Biden reversed all this policy and, among other things, is allowing Iran to

[Citizen13]

LOL.  An " average smart comedian dude "  should know he makes zero decisions when it comes to policy . He's a reality show host FFS . There are smart people behind him who recommend policies for him. They give him a script .  Oh, and then he fills in the rest by watching Fox news 24/7.   You are a silly delusional man if you think otherwise . Perhaps his keepers