RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Be there or be squareAll of these O & G shares have been kind to me ever since the post covid lows.
Peyto has been one of the most difficult for me to understand ,due to their extensive hedge position. But that will unwind over time and we will be left with a well run very cost efficient enterprise for the long term.
I particularly like nat gas as I see it as a transition fuel whose demand will only grow with time. That of course is speculation , yet that is what I do . But I am a one decision only investor for the most part Buy hold borrow against. Of course, Peyto with its high dividend strategy, makes it more compelling but less growth oriented.
My favourite strategy has been the acquisition of drill to fill smaller nat gas and condensate producers. That is where Crew Nuvista PIPE and Kelt fit in. For Crew and NVA that strategy has been marvelous to date, Pipe is going thru confidence issues. Kelt is really well worth looking at currently as Aeco is now strong and their hedge book looks really good
The question is how much longer will drill and fill last Once existing infrastructure is used up , they will need more gas plants. So I look again at Peyto , they have gas plants.
All all in all you have caught me at a difficult time since change is coming. Unless you can figure it out , I would recommend sitting pat. If you want to invest new money, my choice for now is still Vermilion
Reasons tremendous diversity no access problems and fundamentally very cheap !!
BTW no other sector of the stock market comes even close to the O& G sector for future gains. Low PE ratios (PFCF ratios ) sizeable discounts to NVA and tremendous growth potential as the rest of the globe runs down inventories (why I am always looking for escape possibilities for Canadian production )
Yet if necessary, buybacks will provide the growth
Be there or Be square !!,