Last stock in the clip. GLTA https://www.bnnbloomberg.ca/video/eric-nuttall-s-top-picks~2698700 Whitecap Resources (WCP TSX)
Whitecap offers over 20 years of “stay flat” drilling inventory while trading at a 21/30 per cent free cash flow yield at US$80/$100WTI in 2024. Soon hitting its final debt target, the company will bump its annual dividend to a 7.6 per cent effective yield yet have the ability to either double or triple it at US$80/$100WTI (or preferably allocate residual free cash flow towards share buybacks). Trading at a 3.0x/2.4x EV/CF at $80/$100 and able to privatize in three to five years at $80/$100, we believe we are getting at least $15 billion in future free cash flow for free.
TOP PICK
Whitecap Resources(WCP-T)
31/05/2023
Promised no M&A this year, but focusing on rewarding shareholders. Expects them to hit final debt target by end of this year, where dividend will increase by 28% to almost 8%. Will still have residual free cashflow left, so he's hoping for meaningful share buybacks. Minimum inventory depth of 20 years. Good leverage to increased oil price. Yield is 6.19%.
(Analysts’ price target is $13.98)
Oil And Gas (Integrated Oils)
Eric Nuttall
$9.330
Owned