Canadian naTural rESourCES lTd. (CnQ /TSX)
The position: Reduced exposure in recent quarters.
Why don’t you like it? Skiba said CNQ is a very well-run company, but she lowered her weighting due to the negative impact of high differentials between heavy and light oil prices.
“Increased U.S. oil production is filling up refineries, causing a huge bottleneck,” the manager said. “It is somewhat transient, but it will probably be an issue for the next three quarters,”
Skiba prefers integrated energy producers such as Suncor Energy Inc., which she thinks will return more capital to shareholders in the form of buybacks and/or dividend increases.
Potential positive: Increased pipeline capacity.