encana

A holding company discount represents a great hidden opportunity for investor profit despite limited understanding of this phenomenon.

We first recommended Canadian Pacific Railway (now called Canadian Pacific Kansas City) in the first issue of The Successful Investor in January 1995.

The stock moved up for our subscribers in the late 1990s, though much more slowly than Internet and technology stocks....

ENBRIDGE INC., $51.22, Toronto symbol ENB, is a buy.

The company operates pipelines that pump oil and natural gas from Western Canada to eastern Canada and the U.S. It also distributes gas to 3.9 million consumers in Ontario.

Enbridge has agreed to sell a 11.57% stake in seven pipelines to a consortium of 23 First Nations and Métis groups....

OVINTIV INC., $55.74, Toronto symbol OVV, is a buy for long-term gains.

In 2020, Ovintiv became a U.S. company and changed its name from Encana Corp. (old symbol ECA). At the same time, investors received one share of Ovintiv for every five Encana shares they held....

The benchmark crude oil price has jumped roughly 31% in the past year, from $75 U.S. a barrel to $98 U.S. That’s due to several factors, including COVID-19 lockdowns in China and sanctions on oil exports from Russia because of its war on Ukraine.


At the same time, these four leading oil and gas producers are pointing to increasingly stringent environmental regulations as a challenge to expanding their production....

Ovintiv continues to benefit from the sharp rise in crude oil and natural gas prices as the economy rebounds from the COVID-19 lockdowns. The company is now using its surging cash flow to pay down debt and reward investors with rising dividends and share buybacks.


OVINTIV INC....

In addition to Cenovus (see page 21), we also like the outlook for these three leading oil producers. All of them are using their improving cash flows to pay down debt, which helps protect them if crude prices weaken. As well, each is raising its dividend and buying back shares.


SUNCOR ENERGY INC....

Despite volatile crude prices, we continue to advise all investors to maintain some exposure to the oil and gas industry. That advice reflects oil’s huge importance to global economic growth even as governments impose new regulations to cut carbon emissions.


We also recommend investors stick with well-established producers like Cenovus....

CP Rail has been one of our favourite stocks over the past two decades. In fact, we made it the #1 Conservative Buy for our flagship newsletter The Successful Investor in 2019, 2020 and 2021. Our confidence has been rewarded: In the past three years, the stock has gained an impressive 88.9% compared to just 41.7% for the S&P/TSX Composite Index.

We feel CP’s merger with U.S.-based railway Kansas City Southern will push the stock even higher over the next few years.

While big takeovers like this always entail risk, the purchase will greatly extend CP’s reach in the U.S....

OPEC recently announced that it would gradually increase oil production over the next few months. Despite the extra supply, oil prices rose on the news because industrial activity around the world continues to recover from the pandemic. Stable prices will also help Ovintiv with its plan to pay down its debt and so cut the risk for its shareholders.


OVINTIV INC....