This chart shows some of the criteria that Warren Buffett uses in selecting investments. SG&A stands for Selling, General, and Administrative expenses. It is a major line item on a company's income statement that covers all the day-to-day, indirect overhead costs required to run a business, excluding direct production costs like the Cost of Goods Sold (COGS).
Investment manager for Nine Point Partners, Eric Nuttall has in-depth knowledge of the oil and gas business particularly in North America.
On his September 8, 2026 appearance on BNN Bloomberg, he provided his views on many of the top oil and gas companies. He sees that anticipated demand for natural gas (for data centers, etc.) has spurred increased production without an increase demand which has depressed prices. He doesn't see a natural gas price appreciation until late 2027 or 2028.
He favours Canadian oil companies as the best in the world to hold. Our companies still roughly trdae at par with U.S. counterparts whereas we should trade at a premium.
▲ Freehold Royalties (FRU; $17.53) – Dividend is safe down to the mid $50 oil price. Has good holdings. But Eric prefers Cardinal Energy as a good high yield stock that also has growth potential.
▼ Tamarack Valley (TVE; $13.73) – A well run company that they have made a lot of money on, but is fully valued. He would add to his position on a meaningful pull-back from this price.
▲ Athabasca Oil (ATH; $10.95) – A slow and steady grower worth holding, and still undervalued at $70 oil. They are looking at at 50% upside.
▲ Cardinal Energy (CJ; $11.94) – They hold in their income fund and he owns personally. High yield and good exposure to oil, a and higher oil would substantially increase stock price: $80 oil would make it a $17 stock!
▼ Baytex (BTE; $6.80) – Good company that they hold own, but it is almost fairly valued. Eric's fund holds a small position in the company. He is waiting to add if new CEO proves himself.
▲ Topaz (TPZ; $31.58) – A slow and steady grower worth holding, but fully valued at current price. Still a good buy for the dividend.
▲ Whitecap (WCP; $18.16) – A pass pick that he would still add to his top picks if it was allowed. Has a 25% upside. Insiders are buying stock. One of the best oil stock to own.
▼ Greenfire Resources (GFR; $6.20) –Too small and not a good quality purchase.
▼ Birchcliff Energy (BIR; $6.52) –Canadian natural gas and not a market to be in. Would not buy!
▲ Ovintiv (OVV; $87.89) – Excellent CEO and concentrated on lean production. Still trades at a discount. Would be a decent buy here. At $80 oil they see a $91 stock price.
▼ Kelt Exploration (KEL; $10.36) – A very small company but a possible takeover target. A speculative buy that he avoids and is fairly valued now.
▲ Enbridge (ENB; $69.20) – A good buy at this price (they just bought some more at $70 for their income fund).
▲ Tenaz Energy Corp (TNZ; $65.51) – A very good company but they cannot buy because of small available float. A pretty good value at current price and good potential on European gas demand.
His Top Picks:
Cenovus (CVE; $45.56) – Very excited about this company. Increasing share buy-backs. 46-50% upside from here.
Strathcona Resources Ltd. (SCR; $44.50) – One of Eric's larger holdings. 50 years of stay flat inventory. Estimating 8% yield when special dividends are included. Anticipating large special dividends in the near future. 61% upside at $80 oil.
Suncor (SU; $93.00) – Best integrated oil company in Canada, especially diesel price. Decades of inventory. 30-50% upside on $80 oil.
See data from Eric's past appearances on BNN here.
The Consumer Price Index (CPI) in Canada is the index used to show the general inflation rate. This is occasionally publicized to show how t...
