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Strategies & Market Trends : Dino's Bar & Grill

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To: Goose94 who wrote (127863)7/13/2022 2:57:09 PM
From: Goose94Read Replies (1) of 202700
 
Whitecap Resources (WCP-T) top pick from Dennis da Silva on BNN.ca Market Call Wednesday July 13th @ 1200ET

It is a premier intermediate oil producer with an attractive 4.2 per cent dividend yield. It has a recent stock overhang from its $1.7 billion XTO acquisition of Montney and Duvernay assets. Insiders have been buying post-deal. The acquisition is highly accretive: 20 per cent to cash flow, production per share and free cash flow with 3-5 years growth for assets going from 32,000 barrels of oil equivalent per day (boepd) to 50,000-60,000 boepd. The market is likely concerned about leverage and implications for return of capital. The projected dividend is increasing by 65 per cent as debt levels come down over the next 12 months. There is an interesting ESG angle, given the carbon capture Weyburn unit (2MM tons) and 3-5MM tons in agreements for the Saskatchewan project.
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