Henry Hub is Key to Canadian Oil and Gas Production Stock Winners

January 25, 2018

Amir Arif is an Oil & Gas Analyst in Cormark Securities Inc.’s Institutional Equity Research division. He joined the firm in 2014. Mr. Arif’s career includes previous investment experience with Stifel, Friedman Billings Ramsey, and Waterous Securities, as well as previous engineering experience with Fletcher Challenge, Koch Exploration and Norcen Energy. He received his B.S. in petroleum engineering with distinction from the University of Alberta in 1994 and his MBA in finance from the University of Calgary in 1999. He is a Chartered Financial Analyst, Association for Investment Management and Research, since 1999.  In his exclusive interview with the Wall Street Transcript, Mr. Arif sees some bright prospects for Canadian oil and gas producers.

“Right now, when you look at the futures curve on your AECO pricing, it indicates that the situation doesn’t fix itself up for two years, but we think the market will fix itself well before that, and the equities will start reflecting it as soon as we get signs of the AECO market starting to stabilize relative to Henry Hub. Do you want to be in there from an equity perspective even prior to the signal showing up on the commodity side, again, at these levels, given the sentiment, given where the valuations are? There are definitely a handful of names that make a lot of sense to be buying and accumulating at these levels.”

Mr. Arif picks some winners in this sector.

“On the large-cap side, our favorite idea for defensive investors remains CNQ (NYSE:CNQ), and for growth investors, it would be Encana (NYSE:ECA). Then on the midcap side, at current valuations, Seven Gen (TSE:VII) is probably the most compelling opportunity out there right now. Our favorite risk/reward name on the midcap side would be NuVista (TSE:NVA). And then on the small-cap side, on the oily side, both Yangarra (TSE:YGR) and Tamarack (TSE:TVE) make a lot of sense in terms of light oil exposure. I can run through those if you want in terms of the theses.”

To get the complete details on these winning oil and gas production stocks, read the entire interview in the Wall Street Transcript.