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TSE:WCP
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Comfortable with taking a position in WCP. The success of this trade will be up to the sector in general however. If oil moves, the stock should outperform. The sector has been strong, but the future is not guaranteed. Unlock Premium - Try 5i Free
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The company has had record production and increased production guidance. There is no increase in capital expenditure. Payout ratio is 26%.The fundamentals are in the right direction. The valuation is low and fundamentals point to a buy. Unlock Premium - Try 5i Free
Like Cenovus and Arc, they had a busy 2020. WCP became the largest intermediate oil producer in western Canada. They're using carbon capture at their Weyburn unit and they may apply that clean tech to other facilities, maybe to generate revenue. It trades at a premium, because it's so well-run, low-cost, solid balance sheet with tremendous cash flow. They are aggressively reducing debt. Last year, they bought TORC Oil, a perfect merger in terms of balance sheet and assets. Buying NAL Resources was also strategic long-term. WCP is a top-tier oil producer. Boasts a strong balance sheet, so he expects them to keep paying down debt with their strong cash flow. Expects more tuck-in acquisitions to be the biggest player in this space.
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The stock has been actively acquiring companies. It is set up for good growth. Pays a decent dividend and valuation is good. Management team is competent. The balance sheet is stretched but should recover over the next two years. Unlock Premium - Try 5i Free