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
