Ninepoint & other Energy Funds (Canadian)

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About Ninepoint Energy Fund

Fund Type Open-End Fund : C$7.51

Objective Energy Sector

Asset Class Focus Equity

Fund Manager(s) Eric Nuttall

Share Class F Front End Load

Ninepoint Energy Fund is an open-end fund incorporated in Canada. The Fund seeks to achieve long-term capital growth. The Fund invests primarily in equity and equity-related securities of companies that are involved directly or indirectly in the exploration, development, production and distribution of oil, gas, coal, uranium and other related activities in the energy and resource sector.

Fund Top Holdings - Aug. 20, 2019

NamePositionValue% of Fund

Canadian Natural Resources Ltd : CNQ:CN  : 350.000 K : 12.842 M : 0.00%

Diamondback Energy Inc              : FANG:US :   90.000 K : 12.209 M : 0.00%

WPX Energy Inc                              : WPX:US   : 600.000 K : 10.510 M : 0.00%

Baytex Energy Corp.                       : BTE:CN.  :     4.400 M :   9.988 M : 0.00%

Athabasca Oil Corp                        : ATH:CN   :   11.000 M :  9.350 M : 0.00%

TORC Oil & Gas Ltd                        : TOG:CN   :   2.0000 M :  9.220 M : 0.00%

Continental Resources Inc/OK.    : CLR:US   :  150.000 K :   8.973 M : 0.00%

Enerplus Corp                                  : ERF:CN   :  700.000 K :  7.840 M : 0.00%

NuVista Energy Ltd                         : NVA:CN  :     1.800 M :  7.740 M : 0.00%

Parsley Energy Inc                          : PE:US      :  300.000 K :  7.736 M : 0.00%

> https://www.bloomberg.com/quote/SPROENEF:CN

===> CHANGED Later to... (see below):

Ninepoint Fund's Top 10 Holdings @ 11/1/19

NamePositionValue% of Fund ========================: C$8.01, +4.44%: PER, Yield%

MEG Energy Corp          MEG:CN 2.4000M  12.0480M 12.13%:  $ 5.45, +7.71% / -N/A, -N/A-

Crescent Point Energy  CPG:CN 2.5000M  10.8250M 10.90%:  $ 5.03, +4.57% / -N/A, 0.80%

Baytex Energy Corp.      BTE:CN.5.2000M  10.5560M 10.63%:  $ 1.59, +8.16% / -N/A, -N/A-

Cenovus Energy Inc.     CVE:CN 900.000K 10.3950M 10.46%: $11.44, +1.96% / 19.3, 2.19%

Parsley Energy Inc.        PE:US.  400.000K.  9.9578M  10.02%: $16.40, +3.73% / 17.7, 0.73%

Enerplus Corp.               ERF:CN   1.0000M   9.8500M.   9.91%:  $ 8.27, +4.03% / 4.59, 1.45%

Encana Corp.                 ECA:CN  1.4000M.  9.4080M.    9.47%:  $ 5.44, +5.43% / 3.53, 1.82%

WPX Energy Inc.           WPX:US  600.000K  9.0438M.    9.10%: $10.17, +1.90% / 5.86, -N/A-

Whitecap Resources   WCP:CN. 2.0000M   8.5000M.    8.56%:  $ 3.84, +4.63% / 29.1, 8.91%

Kelt Exploration Ltd.    KEL:CN.  1.5000M   5.8500M     5.89%:  $ 2.97, +3.13% / 29.6, -N/A-

USO / US Oil etf ------- : USO                                            compare: $11.69, +3.45% /  ===  ===

XLE  / Energy Select- : XLE.                                            compare: $59.28, +2.28% /  ===  ===

===

> https://www.bloomberg.com/quote/SPROENEF:CN

CHARTS

#1: MEG, CPG, BTE, CVE / 5yr: 2yr: 6mo - Last: C$5.45, C$5.03, C$1.59, C$11.43

#2: PE.us, WPX.us, (USO) / 5yr: 2yr: 6mo - Last: $16.40, $10.17, $11.69

#3: ERF, ECA, WCP,  KEL / 5yr: 2yr: 6mo - Last: $8.27, $5.44, $3.84, $2.97

==

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"Multi-year Bull Market"?

Eric Nuttall webinar September 24 2018

 

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CA:SRHI / Sprott Resource Holdings Inc. (TSE) ... all-data : update

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Nine Point Energy announces $320MM financing led by AB Private ...

https://www.prnewswire.com/.../nine-point-energy-announces-320mm-fina...

 

Jun 17, 2019 - DENVER, June 17, 2019 /PRNewswire/ -- Nine Point Energy, LLC ...

of the facility is to fund the continued growth of Nine Point's Williston Basin ...

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NEWS

2019-09-30 09:09	C:CNQ	35.29	In the News	FP says CER sides with Suncor, others against Enbridge
2019-09-25 07:15	C:CNQ	35.93	In the News	Globe/wire say Suncor, rivals see Trump fan oil fears
2019-09-20 06:42	C:CNQ	35.92	In the News	FP/wire say Husky, rivals hear global oil crunch looms
2019-09-16 09:29	C:CNQ	33.65	In the News	Globe says Cenovus, others see Kenney chasing windmills
2019-09-16 09:09	C:CNQ	33.65	In the News	Globe says Suncor Energy, rivals see oil prices surging

 

FP/wire say Husky, rivals hear global oil crunch looms

2019-09-20 06:42 ET - In the News

See In the News (C-HSE) Husky Energy Inc

The Financial Post reports in its Friday edition that Saudi Arabia's ability to avert a global oil supply crunch will only become clear in a few weeks, because for now its crude held in storage can fill the gap and mask the scale of damage to its facilities. A Reuters dispatch to the Post reports that Riyadh says production will be back to normal levels in two to three weeks, restoring output to about 10 million barrels per day (bpd), after Saturday's attacks on two sites that usually process and clean up about 5.7 million bpd. While it carries out repairs, Saudi Arabia has promised to keep the physical crude market supplied from its inventories held in the kingdom and abroad, estimated to have been about 180 million barrels in July. Traders and analysts, however, are skeptical repairs to the Abqaiq and Khurais sites will be swift, while the lack of transparency about Saudi inventories adds to uncertainty about whether Riyadh can keep markets supplied without disruption. "A lot of October arrival barrels were already on the water so the hole is going to show up toward late October," one European oil trader said. "There has been a mad scramble on the paper markets but the physical scramble will come later.

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Key Statistics : 8.015 CAD +0.341 +4.44%

3 Month Return -7.54% / YTD Return.       -7.39%

1 Year Return.  -32.81% / 3 Year Return. -26.94% / 5 Year Return. -18.18%

Nav (On 11/01/2019) 8.01

Ninepoint Fund's Top 10 Holdings @ 11/1/19

NamePositionValue% of Fund ========================: C$8.01, +4.44%: PER, Yield%

MEG Energy Corp          MEG:CN 2.4000M  12.0480M 12.13%:  $ 5.45, +7.71% / -N/A, -N/A-

Crescent Point Energy  CPG:CN 2.5000M  10.8250M 10.90%:  $ 5.03, +4.57% / -N/A, 0.80%

Baytex Energy Corp.      BTE:CN.5.2000M  10.5560M 10.63%:  $ 1.59, +8.16% / -N/A, -N/A-

Cenovus Energy Inc.     CVE:CN 900.000K 10.3950M 10.46%: $11.44, +1.96% / 19.3, 2.19%

Parsley Energy Inc.        PE:US.  400.000K.  9.9578M  10.02%: $16.40, +3.73% / 17.7, 0.73%

Enerplus Corp.               ERF:CN   1.0000M   9.8500M.   9.91%:  $ 8.27, +4.03% / 4.59, 1.45%

Encana Corp.                 ECA:CN  1.4000M.  9.4080M.    9.47%:  $ 5.44, +5.43% / 3.53, 1.82%

WPX Energy Inc.           WPX:US  600.000K  9.0438M.    9.10%: $10.17, +1.90% / 5.86, -N/A-

Whitecap Resources   WCP:CN. 2.0000M   8.5000M.    8.56%:  $ 3.84, +4.63% / 29.1, 8.91%

Kelt Exploration Ltd.    KEL:CN.  1.5000M   5.8500M     5.89%:  $ 2.97, +3.13% / 29.6, -N/A-

USO / US Oil etf ------- : USO                                            compare: $11.69, +3.45% /  ===  ===

XLE  / Energy Select- : XLE.                                            compare: $59.28, +2.28% /  ===  ===

===

> https://www.bloomberg.com/quote/SPROENEF:CN

CHARTS

#1: MEG, CPG, BTE, CVE / 5yr: 2yr: 6mo - Last: C$5.45, C$5.03, C$1.59, C$11.43

#2: PE.us, WPX.us, (USO) / 5yr: 2yr: 6mo - Last: $16.40, $10.17, $11.69

#3: ERF, ECA, WCP,  KEL / 5yr: 2yr: 6mo - Last: $8.27, $5.44, $3.84, $2.97

==

Sym. Company-- : Last-$ : E.P.S. PER : Yield: BkVal: MkCap: Debt: ebitda: EV.e D/ebi: Pr/BV
BTE.t  Baytex Egy: C$1.59 : (0.23) -N/A: 0.00%: $5.57: $887M $1.93b  1.02b r2.76 r0.00:  29.%
CNQ.t Can.Nat.Rs: $34.08 : $3.99 8.54: 1.50%: 28.84: $40.4b $25.4b 9.94b r6.53 r2.56: 118%
ECA.t EncanaCorp C$5.44 : $1.03 5.30: 1.92%: $7.44: $7.32b  $8.39b 3.57b r4.36 r2.35:  73.%
ERF.t  Enerplus Cp C$8.27 : $1.81  4.57:  1.51%: $8.36: $1.91b  $672M 894M r2.60 r0.75:  99.%
IMO.t  Imperial Oil: $33.08 : $3.60 9.20: 2.68%: 31.29: $25.2b $00.0b 4.36b r5.77 r0.00! 106%
WCP.t WhitecapRs C$3.84: $0.13  29.7: 9.32%: $7.49: $1.59b  $1.24b  842M r3.39 r1.47:  51.%
WPX.  Baytex Egy: C$0.00 : $0.00 0.00: 0.00%: 00.00: $00.0b $00.0b 0.00b r0.00 r0.00: 000%
====

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Pengrowth plunges

PGF.t  /Pengrowth ... update / Last; 0.05 - 0.15

C:*MKTOIL - Energy Summary for Nov. 1, 2019
[2019-11-01 20:45]
Pengrowth plunges as it accepts a heavily discounted takeover offer from Cona Resources (which itself has some experience leaving investors underwater). Cenovus plans production boosts in the oil sands. MEG Energy and Baytex Energy talk debt reduction. 

more...

2019-11-01 09:54

C:PGF

0.05

News Release

Pengrowth agrees to $740M acquisition by Waterous unit

PENGROWTH ENERGY CORPORATION ANNOUNCES TRANSACTION WITH CONA RESOURCES LTD.

Pengrowth Energy Corp. has entered into a definitive arrangement agreement with Cona Resources Ltd., a portfolio company of Waterous Energy Fund, pursuant to which the purchaser has agreed to repay the outstanding principal amount and accrued interest to the date of the arrangement agreement owing under the company's credit facility and secured notes, and acquire all of the outstanding common shares for cash consideration of five cents per share and a potential contingent value payment (as defined herein) for each Pengrowth share. The proposed transaction is to be completed by way of plan of arrangement under the Business Corporations Act (Alberta).

Speaking on behalf of Pengrowth's board of directors, chairman Kel Johnston noted: "As a result of the significant decline in oil prices in 2014, which followed on the heels of the largest capital project in Pengrowth's history at Lindbergh, the company took immediate steps to shore up the company's balance sheet by selling assets to pay down $1.2-billion of debt. Further efforts were undertaken in 2018 to market an additional overriding royalty on the Lindbergh asset and to secure high-yield debt to replace the current outstanding secured debt. Both funding initiatives proved unsuccessful. The extreme volatility in the price of Western Canadian oil in the fall of 2018, coupled with an uncertain political and regulatory environment, has led to a severe funding crisis in the Canadian energy capital markets, which impeded the company's ability to achieve a funding solution."

Pete Sametz, president and chief executive officer of Pengrowth, continued: "With the inability to raise capital to fund our ongoing business, Pengrowth commenced a strategic review process in the first quarter of 2019 with the main alternatives being to source alternative forms of financing, to negotiate an amendment and extension to the secured debt, or to pursue a transaction to merge or sell the company that would provide value to all stakeholders. With continued lacklustre oil pricing and increased political and regulatory uncertainty, our ability to achieve an amendment and extension agreement proved increasingly difficult and dilutive to shareholders. As a result, Pengrowth's board of directors has determined that the best available alternative for the company and its stakeholders is to pursue and support a consensual sale transaction that, in addition to repaying the secured debt, would also provide some measure of value for our shareholders and other stakeholders. Despite the discount this transaction represents to Pengrowth's recent trading price, we strongly recommend our stakeholders support the arrangement agreement as it represents the most attractive alternative for all stakeholders given the current environment where there is essentially no access to capital for the company or participants in the Canadian oil and gas industry in general."

The aggregate value of the transaction, including the repayment of the secured debt and the assumption of the transaction costs by the purchaser, is approximately $740-million. As part of the consideration to be received by Pengrowth shareholders, each shareholder will be eligible to receive their pro rata portion of any finances that may be received by Pengrowth as a result of a pending litigation matter.

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This from Eric Nuttall, partner and senior portfolio manager at Ninepoint Partners, one of Canada's top oil analysts.

We are at the cusp of the next bull market for oil.

Demand appears to have finally inflected positively after several months of very tepid growth (1.1 million barrels per day of growth in Q3) with hopes of a U.S.-China trade truce in the coming months. U.S. shale growth has sharply decelerated from a high of 1.9 million bbl/d year-over-year in August 2018 to 1 million year-over-year growth in August 2019 and its likely to only grow by 500,000 to 700,000  bbl/d in 2020. Meanwhile, global offshore oil production (27 per cent of global production) will peak in 2020, entering into a multi-year decline due to a lack of sufficient investment in four- to seven-year lead projects. Barring an end to Iranian sanctions by the U.S., the market should be undersupplied in the second half of 2020, resulting in strong inventory draws.

Energy stocks today trade near their lowest valuations in history. Discounting less than $50 barrels, many Canadian midcap stocks trade at about 15-per-cent free cash flow (FCF) yields at $55 WTI, over 20 per cent FCF yields at $60 and at three to four times their enterprise value to cash flow (EV/CF) at $55 to $60 WTI. We expect 2020 budgets to focus on maintaining flat production while maximizing FCF to allow for meaningful share buybacks. Given how under-owned the sector has become (index weights less than 50 per cent of historical levels) and how bad sentiment is (despite strong medium-term fundamentals), we believe that investors should be increasing their energy exposure now.