Appreciate all your posts and especially this one Michael! I've been wondering about this question too. My current investment portfolio is 48% E&P, 8% other equities, and 44% cash. Wondering when you say you're 70% E&P and 30% cash, is that your entire portfolio or is this breakdown just part of your equity portfolio allocated to oil and gas. I've looked across a lot of different sectors and don't see much value elsewhere even though I'd very much like to diversify a little. Appreciate your thoughts!
Many investors shun the highly indebted companies, but such are the ones where a lot of additional money can be made in times of high inflation, especially combined with financial repression, which I believe is in fact already partially present for rather some time, but it will be probably even more explicit, as higly indebted western countries simply can't afford real positive interest rates.
Thanks Michael! I have been aligning my portfolio along these lines over the last several months, very reassuring that I'm thinking along the same lines as you. My question is where do you see royalty and pipeline companies who pay nice dividends as part of your mix?
Excellent thinking! Thanks. What is your opinion on Vermillion, Crescent Point and Tamarack Valley? Those are currently my top oil positions due to high cashflow yield (=cheap) and good capital allocation plan.
All three are good choices. VET gets a boost from U.K. and overseas natural gas prices at nosebleed levels; CPG is rapidly paying down debt with high FCF; and, Tamarack now commands the Clearwater with outstanding economics.
Most if not all mid cap small cap will be debt free in 2023 according to Eric's portfolio.
And most have committed 50% to 100% shareholder return.
Big dividend is coming for all oil and gas stock.
Agree. Recession could delay the benefits but not curtail them.
Appreciate all your posts and especially this one Michael! I've been wondering about this question too. My current investment portfolio is 48% E&P, 8% other equities, and 44% cash. Wondering when you say you're 70% E&P and 30% cash, is that your entire portfolio or is this breakdown just part of your equity portfolio allocated to oil and gas. I've looked across a lot of different sectors and don't see much value elsewhere even though I'd very much like to diversify a little. Appreciate your thoughts!
Many investors shun the highly indebted companies, but such are the ones where a lot of additional money can be made in times of high inflation, especially combined with financial repression, which I believe is in fact already partially present for rather some time, but it will be probably even more explicit, as higly indebted western countries simply can't afford real positive interest rates.
https://www.thestar.com/authors.napier_russell.html
Thanks Michael! I have been aligning my portfolio along these lines over the last several months, very reassuring that I'm thinking along the same lines as you. My question is where do you see royalty and pipeline companies who pay nice dividends as part of your mix?
Excellent thinking! Thanks. What is your opinion on Vermillion, Crescent Point and Tamarack Valley? Those are currently my top oil positions due to high cashflow yield (=cheap) and good capital allocation plan.
All three are good choices. VET gets a boost from U.K. and overseas natural gas prices at nosebleed levels; CPG is rapidly paying down debt with high FCF; and, Tamarack now commands the Clearwater with outstanding economics.
Thanks Michael. I really appreciate you sharing this. It's very helpful.
What about SGY.TO. Do you still hold that? What are your thoughts on it?
Great company and should do well. I no longer hold it but you can't dance with every girl at the party.