Ottawa Citizen - - FINANCIAL POST -

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.

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