Parex Resources Inc

Question

I came across this business and it looks so attractive. I understand they are a smaller outfit however, can you lay out some risks associated with this company as opposed to CNQ. Thank you.

Dan Kent · Answer

Hey there. We actually ended up selling the position in one of our model portfolios and replaced it with Tourmaline Oil. We did this on the back of Parex issuing relatively weak guidance. When North American oil and gas plays were expensive, Parex was worth it to take on the international risk as it came with a discounted valuation. For right now, I see NA producers cheap enough that it doesn't make much sense from my end to take on the added risk and weak guidance.