Initial Post (February 5, 2021)
The Divestor Oil and Gas Index has done pretty well since inception. It is up 48.7%, compared to 43.0% for XEG and 37.3% for (the more pipeline-heavy) ZEO.
Birchcliff Energy has been the big winner in the index so far, likely due to the fact it is a pure unhedged natural gas producer, and natural gas has been on fire lately. AECO has spiked above CAD$4/GJ in the recent few days.
The underperformer has been Whitecap Resources, which is likely due to technical factors concerning the recent acquisition of TORC and NAL (which involved stock swapping). With those acquisitions, however, they will be able to increase their drilling inventory considerably for future expansion, while others on the list (the large 3) will be more constrained on growth.
here’s hoping the second half of 2021 continues for the oil & gas sector – Canada is going to need a lot of revenue from the energy sector to help pay for all the govt spending on Covid programs.