Hey there -
I'm a long-time owner of AGI myself - one of the aspects I like about AGI was that it was entering a period of significant cash flow generation. As a smaller, mid-sized producer it is likely to be more volatile than some of the bigger senior producers, but it is still an excellent company with a solid management team. I like the fact that its primary assets are all in geopolitically safe jurisdictions (CAN, US, Mexico).
The company recently put the La Yaqui Grande asset into operation - earlier than expected and is likely to drive growth over the short term. As mentioned, I'm particularly attracted to the company's strong cash flow generation and it expects to internally fund expansion through this cash flow. The company i's on track to meet or exceed all previously announced guidance and has a history of meeting targets. IMO, its just a solid gold stock to own. At the end of the day, it'll still be subject to commodity price fluctuations, but it is executing quite well.
As for TOU, much in the same way it is subject to the price of commodities and it is benefiting from higher prices in a big way. As the largest natural gas producer in the country, it is particular susceptible to NG prices. That said, the company is generating a ton of cash flows here, so much so that it announced a $2.00 per share special dividend after recording a record $1.35B in cash flows in the second quarter. The company is also reducing debt at a rapid pace and net debt is down to $430M, below its long-term target of 1-1.2B. IMO, TOU ranks up there with CNQ as two of the best oil & gas producers out there. This is true regardless of operating environment.
There is always risks buying at the top of commodity cycles, but strong companies like TOU should still outperform their peers if prices take a downturn. What I like about TOU in particular, is that they are shoring up their financial position in this bullish environment, are being prudent with dividend raises (raises in the mid-teens), able to fund expansion through cash flows and choosing to return excess cash in terms of special dividend. They are a well run company.
Mat