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Opinions The Panic-Proof Portfolio (Stockchase Research)
Tourmaline Oil CorpTOU.TOPAST TOP PICKDec 05, 2023
Stock price when the opinion was issued
As of Jun 19, 2026. Market Open.
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Commodity price downturn has been pretty abrupt, but still nice levels for Canadian producers. $70 crude converted to CAD is still a pretty nice number. On the gas side, transformational event will be LNG Canada egress coming on late 2024 and early 2025. It will make capital budgets more dependable. Can deploy capital here, but keep powder dry in case of economic or commodity weakness.
See his Top Picks.
Has owned this a long time. The chart has done very well. Every time shares gap higher, he trims to reduce his weighting. TOU is set up very well for the long-time; Canada LNG is in the sweet spot. Happy to hold this for a long time.
Andrew PinkBest company to own natural gas in Canada. Excellent management team. Very good growth. Excellent marketing team that secures good pricing. Pipeline expansion in Canada will benefit company. Con to the business is that natural gas is commodity under pressure. Overall, a strong business. Would recommend buying.
Editor's Note - The question was more related to the oil and gas sector in general. The sector is down and not growing much so wait for a pullback before buying stock in these companies. There has been less capital spending in the industry than before so there could be supply chain constraints going forward. Companies have been paying cash flow back to shareholders through dividends and share buybacks. He doesn't own Tourmaline but it is a great company.
Natural gas has challenges with large storage numbers. Best natural gas producer in Canada. Excellent management team with best in class operations. Current valuation high compared to others in sector. Positive cash flow profile with excellent balance sheet. Safe dividend with expected growth. Would recommend buying.
It is a very high quality company and a household name. A top priority is returning cash to its shareholders. It is the largest Canadian company in its field and the fifth largest in North America. Its recent earnings were fantastic. It is mostly natural gas and there will some price movement with the changing price of energy. Buy 15 Hold 1 Sell 0
(Analysts’ price target is $84.83)
"The CNQ of natural gas." Great management team, assets, balance sheet. Not excited by its trading at 5.5x. 6x multiple is reasonable with 8% upside. Amazing optionality with LNG, but until then he'd rather buy other names for capital appreciation of 100% or more. Yield is 7%, plus writing calls.
Eric NuttallOPEC meetings are reactive, not pro-active. With all their data, for instance, they cut production if that data foretells weak demand. So, a cut is not a good thing. That said, he would buy quality oil stocks like Parex and Tourmaline.
Brian MaddenHappy to add to it. Has performed well. The best natural gas producer in Canada. They've amassed great drilling locations, cheap production costs, so growth will happen for years. Good history of paying dividends, both regular and special.
Brian MaddenOil is the safest of all the resource categories. Here are 2 names that will let you sleep at night.
Big fan of CNQ: best in class in execution, quality assets, aristocrat in dividend growth.
TOU doesn't give the upfront, regular dividend, but has been generous with special dividends. Capable of delivering in high single-digit range in terms of total yield.
Our PAST TOP PICK with TOU has triggered its stop at $64. To remain disciplined, we recommend covering the position at this time. Combined with our previous recommendation, this will result in a net investment gain of 4%.