Latest news with #EricNuttall
Yahoo
16-05-2025
- Business
- Yahoo
MEG Energy stock jumps on Strathcona takeover offer; Ninepoint's Eric Nuttall slams 'hostile bid'
Shares of Canadian oilsands producer MEG Energy ( gained as much as 34 per cent on Friday in response to a cash-and-stock takeover bid from rival oil and gas firm Strathcona Resources ( worth about $5.9 billion. While MEG says its board will review the offer, a prominent Toronto-based money manager and shareholder known for his focus on Canada's oil and gas sector is raising concerns about the proposed deal. Strathcona, which already owns a 9.2 per cent stake in MEG, says the combination would create Canada's fifth-largest oil producer, with oil reserves among the largest in North America. Strathcona's cash-and-stock offer works out to a 9.3 per cent premium above MEG's closing price on Thursday. If approved, MEG shareholders would own 37.8 per cent of the combined company. "I am not actually aware of two businesses of any scale in North America that share this level of complementary nature," Strathcona executive chairman Adam Waterous said on a conference call on Friday. "These are doppelgangers, you know, brothers from another mother, identical twins." Strathcona describes the companies as heavy oil "pure plays," with near-identical netbacks and reserve life indexes. Toronto-based MEG shares soared on Friday, climbing 15.95 per cent to $24.70 as at 12:25 p.m. ET. Eric Nuttall, manager of Toronto-based Ninepoint Partners' energy fund, took to social media on Friday to voice his concerns about the proposed deal. MEG is a top holding in Ninepoint's energy ETF ( as at April 30. Jeff Lagerquist is a senior reporter at Yahoo Finance Canada. Follow him on Twitter @jefflagerquist. Download the Yahoo Finance app, available for Apple and Android.
Yahoo
19-04-2025
- Business
- Yahoo
Unpacking the Bank of Canada's pause: FP Video talks to the economists
Donald Trump's trade war fits and starts continued to buffet stock markets and upend international relations this week as the United States president floated a pause on auto tariffs but then barred Nvidia Corp. from selling a specialty chip to China. Amid this turmoil the Bank of Canada held its key interest rate Wednesday and FP Video talked with economists about the reasoning behind the decision and where policymakers might go from here. FP Video's Larysa Harapyn also spoke with mortgage broker Ron Bulter about what it will take to get Canada's 'muted' housing market moving. And energy analyst Eric Nuttall filled us in on the opportunities Trump's trade war could create for the Canadian oil industry. Randall Bartlett, deputy chief economist at Desjardins Group, talks about how the Bank of Canada will want to keep its foot near the brake as it eyes further interest rate cuts. Ron Butler, a broker with Butler Mortgage, talks about what is happening in the mortgage and housing markets and the role future Bank of Canada interest rate cuts could play. Eric Nuttall, senior portfolio manager at Ninepoint Partners LP, talks about how Canadian oil producers are stronger than United States rivals as Trump's trade policies rock the world. Benjamin Tal, deputy chief economist at CIBC Capital Markets, talks about the impact of uncertainty under Trump on Canada's economy, which may already be in recession. Auto tariffs could be 'quite devastating': Linda Hasenfratz 'Unprecedented' times will test investors: Kelley Keehn
Yahoo
18-04-2025
- Business
- Yahoo
Canada's oilpatch set to pull ahead as falling prices put U.S. shale in 'death zone'
Canada has the ability to be 'one of the last men standing' when it comes to oil supply amid a trade war with the United States, according to Eric Nuttall, senior portfolio manager at Ninepoint Partners. Nuttall said Canadian oil producers can outlast price weakness much better than their U.S. rivals because they've benefitted from several years of deleveraging. Paying down debt has also led to stronger balance sheets and business models. 'U.S. shale — we are now in the death zone for the oil price that they need to keep production flat,' Nuttall said in a recent interview with the Financial Post's Larysa Harapyn. 'If we're in a position where we have to rebalance the market by losing that short-cycle supply, Canadian companies will do just fine.' Nuttall added that the U.S. is no longer viewed as a safe and reliable provider of energy due to its introduction of tariffs on certain key liquified natural gas (LNG) consuming nations. So, if both countries are vying for the same contracts, Canadian LNG companies are likely to succeed. 'We are viewed as a safe, reliable and cheap provider of products,' he said. 'We can win it in the end of the day.' Nuttall said that U.S. tariffs will also have an impact on global oil demand as uncertainty about how long they will be in place weighs on markets. 'That's the biggest uncertainty that we have is what's the end game?' he said. 'Is this truly a short-term grand deal type tactic? Is this an intent to reshore?' And it's not just demand that will be affected. Nuttall is expecting U.S. shale growth to fall year-over-year at the current oil price. Liberals' promise to make Canada an 'energy superpower' Canada could become LNG leader, but needs new roadmap 'The story this year is not just on demand because we're all guessing. It's really on supply,' Nuttall said. 'Shale growth, or lack thereof, [will be] a key theme for the oil market.' • Email: novid@ Sign in to access your portfolio
