Top Energy Fund Manager Says To Ride Out The Oil Spike In Canada

Top Energy Fund Manager Says To Ride Out The Oil Spike In Canada

An oil sands worker at the Syncrude mine north of Fort McMurray, Alberta, Canada. Eric Nuttall at Toronto-based Ninepoint Energy Fund prefers Canada-based oil and gas companies — for more than just patriotic reasons. Far from the war in Ukraine, safe from Houthi rockets, and less hassle than fracking shale wells, Canada's oil fields – including the tar sands of Alberta – are the perfect place to invest for the oil spike of 2022. "People do not understand how much free cash flow is being generated," says Nuttall. A favorite holding of Nuttall's $1. 5 billion Ninepoint Energy ETF, is MEG Energy, which coaxes oil out of a 1, 000-foot deep layer of oil sands near Alberta's Fort McMurray. MEG uses the in-situ method; that involves injecting high-pressure steam that softens the oil and pushes it up producing wells. MEG doesn't have to worry about exploring; it has sufficient reserves to support 35 years of production at its current level of nearly 100, 000 barrels per day (bpd) and would make money even at $50 oil. MEG trades at about 5 times expected cash flow, and after the company pays down debt to $1. 2 billion this year, 50% of