Pro Picks: Eric Nuttall's Nat Gas Picks
Three investment ideas from Ninepoint's Eric Nuttall
Watch: Eric Nuttall’s Top Energy Ideas
Eric Nuttall, Senior Portfolio Manager at Ninepoint Partners, delivers a deep dive into the Canadian oil and gas sector post-election. He explains why he’s trimming oil exposure, leaning into natural gas, and watching how Bill C-69 and tariff policy are reshaping the landscape. Watch the full episode here
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Past Picks Update
Veren (VRN): Selected on January 21st, up 6% since, bought by Whitecap with closure expected in May, no longer held in the fund as Nuttall raised cash, though he owns it personally for its dividend stream.
Meg (MEG): Down 17% since selection, remains a top holding due to its 35-year stable inventory and potential to buy back significant shares.
Athabasca (ATH): Down 14% since picked, still a major holding with 50 years of inventory, no debt, and aggressive share buybacks.
Natural Gas Spotlight
Eric Nuttall is bullish on natural gas, allocating 65-70% of his portfolio to the sector, citing a multi-year bull market driven by rising LNG demand, constrained supply from mature basins, and high marginal costs in the Haynesville basin. He highlights three names:
Expand Energy Corporation (EXE): Valued for its strong fundamentals and exposure to the natural gas bull market.
Resource Depth: Offers 20+ years of stable inventory, ensuring long-term production sustainability.
Clean Balance Sheet: Boasts a robust financial position, minimizing risk in volatile markets.
Share Buybacks: Committed to repurchasing shares, which supports share price stability during downturns.
ARC Resources Ltd. (ARX): Held for its resilience and ability to capitalize on rising natural gas prices.
Long-Term Inventory: Possesses over 20 years of stable production capacity, aligning with the multi-year bull market.
Institutional Appeal: Large enough market cap to attract institutional investors, potentially boosting valuation.
Dividend and Buybacks: Offers a combination of dividends and share repurchasing, enhancing shareholder value.
Nuvista Energy Ltd. (NVA): Favored for its significant upside potential in a sustained natural gas rally.
High-Cost Basin Exposure: Benefits from the $5 marginal cost in the Haynesville basin, driving profitability.
Strong Balance Sheet: Maintains a clean financial position, providing flexibility for growth and buybacks.
Resource Longevity: Holds 20+ years of inventory, positioning it for consistent output in a demand-driven market.
DISCLAIMERS: The information provided in this podcast is for informational purposes only and does not constitute financial, investment, or professional advice. The views expressed by the host and guests are their own and do not necessarily reflect the opinions of any organization or company. The host and guests may maintain positions in any securities discussed on the podcast. Always consult with a qualified financial advisor or professional before making any investment decisions.