Last stock in the clip. GLTA
https://www.bnnbloomberg.ca/video/eric-nuttall-s-top-picks~2777170
Crescent Point Energy (CPG TSX)
Crescent Point has successfully pivoted from a low-productivity Saskatchewan focused oil company to a more balanced oil company with meaningful liquids rich exposure in the Montney. They recently drilled a ~2,000 Boe/d well in their Montey acreage, a 15x increase to their old style Saskatchewan oil wells. With at least 15 years of Tier one acreage the company has lots of running room and is now returning 50% of free cashflow back to shareholders. Trading at a 28 per cent free cashflow yield at US$90WTI we see the company retiring 14% of their shares outstanding while paying down debt by over $500MM. We see fair value at five times EV/CF which at $90WTI = $25.50 target price = 124 per cent potential upside.
TOP PICK
Crescent Point Energy Corp(CPG-T)
29/09/2023
Successfully transitioned into long reserve life company (Duvernay & Montney).
Largest oil wells in Canada.
Returning 60% of free cash flow yield to investors.
~15 years of high quality inventory.
Expecting 100% upside at current share price.
Dividend yield ~3% and will also issue special dividends.
Oil / Gas
Eric Nuttall
$11.260
Owned