CNQ: Adding Canadian Natural Resources to Investing Ideas (Long Side)

11/20/19 10:22AM EST

Hedgeye CEO Keith McCullough is adding Canadian Natural Resources (CNQ) to the long side of Investing Ideas. Below is a brief note. 

Alongside big cap US Energy Stocks (XLE) our favorite Canadian Energy name, Canadian Natural Resources (CNQ), is correcting toward the low-end of its @Hedgeye Risk Range.

Here's a summary excerpt of Energy Sector Head Al Richards' fundamental view on the name:

"We continue see it as one of the most compelling opportunities on the long side in energy today. The business is on the back-end of a 10 year CapEx cycle, retains high FCF margins due to low operational costs and bitumen upgrading operations, has a repeatable, low decline asset base, and is shareholder focused. All in all, a rarity in North American E&P. Additionally, we see it as an interesting way to play our Macro Team’s call that Quad 3 and Long Energy will be a persistent theme over the coming quarters."

Buy on red,

KM

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