RE:RE:RE:Eric NuttallMy comment about FCF was reiterated by Randy Ollenberger of BMO. This was in this morning's Globe & Mail. No mention of WCP, but the point is made about FCF.
BMO energy analyst Randy Ollenberger reviewed profit results for the sector and reiterated top picks,
“Third-quarter reporting saw the oil and gas group deliver better-than-expected results. Suncor and MEG have started returning 100% of free cash flow to shareholders while Canadian Natural is expected to revert to returning 60% of its post-dividend free cash flow once the Chevron asset acquisition closes in Q4/24. Despite relatively strong quarterly results, share price performance has been relatively muted, largely due to ongoing geopolitical uncertainty. We expect crude oil prices to remain range-bound for the near term but continue to see good value in the group, which could generate roughly $31 billion of free cash flow in 2025 at the current strip, with ~$28 billion going to shareholders. This translates to a compelling delivered yield of ~7.6% … SU’s material beat stood out amongst the large caps, followed by ARX, BTE and IMO delivering the biggest positive surprises, while CVE posted the largest miss. For the SMID group, NVA, LGN, and PXT reported the largest beats while GFR and RBY reported the largest misses”
Mr. Ollenberger’s stocks that are listed among BMO’s top 15 Canadian picks are Cenovus Energy Inc. (CVE-T), NuVista Energy Ltd. (NVA-T), Canadian Natural Resources Ltd. (CNQ-T) and ARC Resources Ltd. (ARX-T).