tag:blogger.com,1999:blog-1527840491496268397.post7454514812391309039..comments2024-03-08T11:20:30.095-07:00Comments on Credit Bubble Stocks: Canadian Natural Resources Limited ($CNQ)Unknownnoreply@blogger.comBlogger1125tag:blogger.com,1999:blog-1527840491496268397.post-57482024144784052132022-01-31T11:34:08.069-07:002022-01-31T11:34:08.069-07:00Using US$100 per barrel in 2023, we estimate that ...<i>Using US$100 per barrel in 2023, we estimate that the average of 23 Canadian energy stocks we model is trading at a free cash flow yield of 42 per cent, and, therefore, could privatize with just 2.4 years of free cash flow. Contrast this with oil companies having an average of 15 years of drilling inventory, and <b>energy ignorance is allowing investors to acquire more than a decade of free cash flow streams for literally nothing.</b><br /><br />How do we measure potential further upside? Using a targeted free cash flow yield of 10 per cent to 15 per cent on an enterprise level, we estimate the average Canadian energy stock still has about 129 per cent left to run.<br /><br />The biggest risk to energy investors who have enjoyed the gains of recent years is selling too early because they didn’t quantify what upside still potentially exists. Dare to dream. The path forward will no doubt remain volatile, yet we believe the confluence of growing demand and challenged supply growth means we are in a multi-year bull market for oil that will last for at least five to six years.</i><br />https://financialpost.com/commodities/energy/oil-gas/eric-nuttall-making-the-case-for-an-oil-bull-market-that-lasts-five-or-six-more-yearsCPhttps://www.blogger.com/profile/12701174164478027499noreply@blogger.com