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Opinions Mason Granger
Whitecap ResourcesWCP.TOTOP PICKFeb 27, 2013
Mason GrangerStock price when the opinion was issued
As of Jun 19, 2026. Market Open.
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Mid-cap energy stocks have been strong, even with reduced fund flows from pension and ESG funds. WCP and ARX will continue to do well.
Never sell just for tax reasons. Whenever he's done this, it's been a mistake. Instead, ask yourself if your thesis still holds for owning the stock? If yes, hold on. If not, let it go.
Excellent business that owns large amount of shares in. Excellent management team. Safe dividend. Plan from recent M&A has been executed flawlessly. Low cost producer allows $55 WTI price floor. Expecting company to continue buying back stock and increasing dividend. Would recommend buying.
Mike VinokurWe do not see any company specific news regarding WCP since its results in October but there have been some modest target price cuts since then. WCP continues to be a consistent monthly dividend payer and will move with energy prices in the short-term. The shares are cheap, yield is high and is starting to pay debt back down which is nice to see.
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Slight premium to other names. Overhang is its promise for M&A activity, likely to happen in 2024. 40-50% potential upside from here with $80 oil. Yield is 7.6%.
Eric NuttallAren't as shareholder-friendly as its peers, like buying back shares and paying down debt. Instead, WCP has been buying businesses for long-term growth. The market prefers higher dividends and buybacks. He isn't buying any oil stocks now.
Prodigious free cashflow being used to aggressively pay down debt. All while maintaining capital investments and treating shareholders fairly well. A good buy for a 2-3 year hold. He wouldn't sacrifice ARX shares to fund the purchase.
Rick RulePopulation growth Canada does affect energy stocks too much. Global demand more important for energy prices. China weakness in real estate a concern. Potential for recession also a concern. Expecting $70-$90 price going forward. Does not own shares in company. Hard to predict future of company.
~7% ownership in fund.
High quality oil assets.
Recent entered into Montney oil field.
Long reserve life (PDP).
Experienced management team.
Dividend yield is safe.
Expecting a $16 share price going forward.
Eric NuttallLikes the generosity toward shareholders, balance sheet tightening, and sustaining capital to support the dividend. "In the choice between yield and growth, why not choose both?"
Rick RuleExpects a dividend increase next quarter. Yield is 5.4%, should go up to 7-ish%, hugely sustainable. Good exposure to oil. They could go 8 years without drilling, much longer than the average. Trades at 3.6x $80 oil. Still good upside.
Eric NuttallOwns shares of company.
Very strong intermediate energy company.
Recent weakness of share price - good time to buy.
Good assets with excellent earning potential.
Strong management team.
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Premium contentOur PAST TOP PICK with WCP has triggered its stop at $9.25. To remain disciplined, we recommend covering the position at this time. When combined with previous buy recommendations, this results in a net loss of 8%.
(A Top Pick March 29/12. Up 2.29%.) Should be able to achieve some high single digit growth on the asset side in addition to receiving the 6.70% dividend. Good blend of growth and income. Assets in the Viking and Cardium pay back in 1-1.5 years. Modest debt. Adopted a three-year hedging program. 20%-29% upside is fairly achievable. An overhang in the near-term is an asset sale out of Barrick, which has one asset that would be a perfect fit for them, but would require financing.