netnet Posted February 2, 2015 Share Posted February 2, 2015 Given the dictum, buy when there is blood in the streets, what are the best stocks in energy? Does anyone have any gem in this carnage? This includes everything from hoteliers in Alberta to pump makers in Japan, from E&P firms in Colorado to pipelines operators in BC. In no particular order, I am looking at, but have not invested in: Atlas, spinoff within a month of a oil and gas limited partnership promoter, hedged through 2017, good track record but big debt Birchcliff, medium sized gas play, Seymour Schulich, FrancoNevada founder is a big holder, he says its a core holding for him Spindletop, small Texas opportunistic E&P, but has not dropped enough for me Macro Enterprises, pipeline builder and maintainer with a strong balance sheet, may be close to net net Link to comment Share on other sites More sharing options...
matts Posted February 2, 2015 Share Posted February 2, 2015 There are already multiple threads discussing possible picks to play energy..... Link to comment Share on other sites More sharing options...
Guest 50centdollars Posted February 2, 2015 Share Posted February 2, 2015 Peyto is probably the best company in the patch but it is not cheap. Trilogy energy looks interesting. i have yet to dive into it nut I noticed Clayton Riddell purchased about $2.5 million in stock recently. He is a smart investor. Link to comment Share on other sites More sharing options...
netnet Posted February 3, 2015 Author Share Posted February 3, 2015 I am also looking at Chicago Bridge and Iron, Buffett purchase long thread on site GasLog GLOG, a LNG shipper the question is which of all the companies that have gotten caught in the downdraft is the safest investment with a reasonable return? Link to comment Share on other sites More sharing options...
yadayada Posted February 5, 2015 Share Posted February 5, 2015 How about Enterprise group. Trading at 2-3x earnings, below book value. And less then 5% is related to oil lol. Yet it lost 2/3 of its value in the past 6 months. part of revenue is secured in 2-3 year contracts. So extremely unlikely to lose money here, and somewhat likely you do a homerun. Link to comment Share on other sites More sharing options...
Cardboard Posted February 5, 2015 Share Posted February 5, 2015 I would be careful saying that only 5% of Enterprise business is related to oil: "Fleet of trucks and heavy equipment to install underground utilities and pipelines and tunnelling services. Rents heavy equipment, flameless heating units and oilfield site service infrastructure." That is the description of the business that I wrote down in a spreadsheet. So if spending is cut by roughly 25% across the board in the WCSB, I would imagine that their business will decline similarly. True that it is cheap. Another one that you may want to look at is McCoy Global. This is much more directly related to oil & gas drilling, but it is very cheap and they sit on a nice net cash pile. Or Hyduke Energy Services which has been turned around and is now lead by a good CEO focused on doing business at home, which there should be plenty for their size. The board is also focused on the right things now. Bri-Chem is also cleaned up and they have made some smart acquisitions. No doubt it will be hit by a reduction in drilling, but it is incredibly cheap. Cardboard Link to comment Share on other sites More sharing options...
LetThereBeBulls Posted February 6, 2015 Share Posted February 6, 2015 You should be wary when buying any company that is priced based on an underlying commodity. One angle to take here is to buy the debt and skip the equity all together. Link to comment Share on other sites More sharing options...
Uccmal Posted February 6, 2015 Share Posted February 6, 2015 My personal favourite: MTL - Mullen Group; I bought it again, after a few years at its absolute low in early January. They have diversified into trucking across Canada since I last held the stock. I bought big this time. An exceedingly well run company by an owner operator using the holding company style. Arc Energy - ARX - As good as best in breed in Western Canada - also a former holding. Smaller position than Mtl because it is a pure energy play. You need to wait to see, if oil hits another downdraft to buy The above two. The best deal is likely gone. Link to comment Share on other sites More sharing options...
InsecurityAnalysis Posted February 9, 2015 Share Posted February 9, 2015 Michael Rose and his team over at Tourmaline have a good track record. I have been keeping on eye on them for a long time. Looking for an entry point the last couple months but its remained surprisingly resistant to all of the carnage. Link to comment Share on other sites More sharing options...
kab60 Posted February 9, 2015 Share Posted February 9, 2015 My personal favourite: MTL - Mullen Group; I bought it again, after a few years at its absolute low in early January. They have diversified into trucking across Canada since I last held the stock. I bought big this time. An exceedingly well run company by an owner operator using the holding company style. Arc Energy - ARX - As good as best in breed in Western Canada - also a former holding. Smaller position than Mtl because it is a pure energy play. You need to wait to see, if oil hits another downdraft to buy The above two. The best deal is likely gone. Hi Uccmal, I'm interested in your thesis on MTL, as I've looked into your favorite (and invested) in SSW before. From my quick glance MTL generates a lot of cash but roughly half of it goes to capex without revenues improving much in recent years (seems like maintenance capex and not growth capex). Obviousy lower oil prices should increase earnings, but current valuation (and even in beginning of january 2015) doesn't seem all that cheap (unless I missed something, and I most likely did). Thanks! Link to comment Share on other sites More sharing options...
Uccmal Posted February 9, 2015 Share Posted February 9, 2015 My personal favourite: MTL - Mullen Group; I bought it again, after a few years at its absolute low in early January. They have diversified into trucking across Canada since I last held the stock. I bought big this time. An exceedingly well run company by an owner operator using the holding company style. Arc Energy - ARX - As good as best in breed in Western Canada - also a former holding. Smaller position than Mtl because it is a pure energy play. You need to wait to see, if oil hits another downdraft to buy The above two. The best deal is likely gone. Hi Uccmal, I'm interested in your thesis on MTL, as I've looked into your favorite (and invested) in SSW before. From my quick glance MTL generates a lot of cash but roughly half of it goes to capex without revenues improving much in recent years (seems like maintenance capex and not growth capex). Obviousy lower oil prices should increase earnings, but current valuation (and even in beginning of january 2015) doesn't seem all that cheap (unless I missed something, and I most likely did). Thanks! I dont think you have missed anything. Capex is not real high relative to net earnings. They buy companies with some regularity. I bought at an average of about 18.90 in January. Not super cheap. If it were to drop below $18 I might buy more. What I like: 1) The dividend - Easily covered by their net earnings. They deliberately didn't raise it in 2014 because they had investments coming up that they knew about. They are also careful around the commodity price 2) Management is excellent and are owners. 3) Decentralized business - Think BRK 4) Growing the business at a sensible clip. 5) Debt levels are carefully managed, and are being kept at a reasonable levels. Things I dont like: 1) Leverage to the commodity cycle. They are taking steps to mitigate this risk by hedging the oil services business with major purchases in general trucking. The two are profitable at opposite sides of the spectrum. Why it may appear messy. When I first bought the stock circa 2005/2006 they were an income trust. They stayed that way until near the end of 2011. During this period the debt levels ran much higher and they paid nearly 100 % of cash flow because it was tax advantaged. When the gravy train ended they had to bring the dividend down, bring the debt down, and operate properly as a corporation. It seems the post income trust rationalizing was finished last year. The other thing that make's it look messy is 2009. They had too much debt going into the liquidity crisis, as did SSW, and everyone else. Mullen went to the bank of Fairfax for an expensive loan. This is off the books now. It was bought in and debt is now much cheaper. Knowing FFH that debt was certainly well north of 10%. Their long term debt now is in the 6% range, and easily covered. I have been actively searching for dividend payers that wont cut their dividend and may even raise it. MTL certainly fits the criteria. Link to comment Share on other sites More sharing options...
Guest wellmont Posted February 9, 2015 Share Posted February 9, 2015 Michael Rose and his team over at Tourmaline have a good track record. I have been keeping on eye on them for a long time. Looking for an entry point the last couple months but its remained surprisingly resistant to all of the carnage. i like the odds of getting my money out of this one when the time comes. along with kelt. Link to comment Share on other sites More sharing options...
Guest notorious546 Posted February 9, 2015 Share Posted February 9, 2015 My personal favourite: MTL - Mullen Group; I bought it again, after a few years at its absolute low in early January. They have diversified into trucking across Canada since I last held the stock. I bought big this time. An exceedingly well run company by an owner operator using the holding company style. Arc Energy - ARX - As good as best in breed in Western Canada - also a former holding. Smaller position than Mtl because it is a pure energy play. You need to wait to see, if oil hits another downdraft to buy The above two. The best deal is likely gone. Hi Uccmal, I'm interested in your thesis on MTL, as I've looked into your favorite (and invested) in SSW before. From my quick glance MTL generates a lot of cash but roughly half of it goes to capex without revenues improving much in recent years (seems like maintenance capex and not growth capex). Obviousy lower oil prices should increase earnings, but current valuation (and even in beginning of january 2015) doesn't seem all that cheap (unless I missed something, and I most likely did). Thanks! lower oil prices should improve earnings? i guess the transportation/trucking segment outweights their Oilfield services exposure? Link to comment Share on other sites More sharing options...
kab60 Posted February 9, 2015 Share Posted February 9, 2015 My personal favourite: MTL - Mullen Group; I bought it again, after a few years at its absolute low in early January. They have diversified into trucking across Canada since I last held the stock. I bought big this time. An exceedingly well run company by an owner operator using the holding company style. Arc Energy - ARX - As good as best in breed in Western Canada - also a former holding. Smaller position than Mtl because it is a pure energy play. You need to wait to see, if oil hits another downdraft to buy The above two. The best deal is likely gone. Hi Uccmal, I'm interested in your thesis on MTL, as I've looked into your favorite (and invested) in SSW before. From my quick glance MTL generates a lot of cash but roughly half of it goes to capex without revenues improving much in recent years (seems like maintenance capex and not growth capex). Obviousy lower oil prices should increase earnings, but current valuation (and even in beginning of january 2015) doesn't seem all that cheap (unless I missed something, and I most likely did). Thanks! lower oil prices should improve earnings? i guess the transportation/trucking segment outweights their Oilfield services exposure? Sorry, it should have said in the trucking segment. Not sure what the bottomline is. Thanks for the writeup, Uccmal. I'll keep track of the company. Link to comment Share on other sites More sharing options...
jwelborn93 Posted February 9, 2015 Share Posted February 9, 2015 I'm currently looking for more U.S. O&G exposure in my roth ira. (account is at optionshouse so can't trade TSX companies) I already have CBI, but the only other company I see coming up much on this board is NOV. Are there more compelling opportunities that anyone could recommend? Link to comment Share on other sites More sharing options...
Spekulatius Posted June 1, 2015 Share Posted June 1, 2015 I'm currently looking for more U.S. O&G exposure in my roth ira. (account is at optionshouse so can't trade TSX companies) I already have CBI, but the only other company I see coming up much on this board is NOV. Are there more compelling opportunities that anyone could recommend? How about FLR - same business than CBI, clean accounting and great balance sheet (net cash) but not as cheap in terms of PE. If you look at metrics with EV rather than market cap in the denominator, the valuation compared to CBI is fairly comparable. Link to comment Share on other sites More sharing options...
Guest notorious546 Posted June 1, 2015 Share Posted June 1, 2015 i like dnow, we have thread here that goes over most things fairly well imo Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now