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Strategies & Market Trends : Dino's Bar & Grill

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To: Goose94 who wrote (91739)11/20/2020 1:54:05 PM
From: Goose94Read Replies (1) of 202704
 
Whitecap Resources (WCP-T) revisited 2.0 top pick from Eric Nuttall on BNN.ca Market Call Friday Nov 20th @ 1200ET


Whitecap is a Canadian small cap oil producer that pays a 5.1 per cent yield, has a relatively strong balance sheet (2.1 times debt to cash flow at $50 WTI) and recently completed a highly accretive acquisition of a junior oil private producer (NAL). Trading at 5/3.5 times enterprise value to cash flow at $50/$60 WTI and at a 15/30 per cent pre-dividend free cash flow yield, Whitecap has differentiated itself by being active in M&A as well as being the only net negative emissions producer in Canada given their CO2 reinjection project. With investor interest still largely concentrated in the large caps, Whitecap has the highest likelihood of a rerate when sentiment on oil improves. At a targeted 6 times EV/CF multiple, we see 34/121 per cent upside at $50/$60 oil
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