>>20954756out of curiosity, why junior oilcos when you can get insane value and duration for cheap with the majors? When quality is going for a discount, is there a point in trying to squeeze all the value in the more risky and lower margin juniors especially when recession risks are higher? Like, CNQ is trading at 10% FCF yield and are returning 100% of the FCF in dividends and buybacks, XOM is also yielding around 10% in FCF and they keep growing, plus they have a very diversified business on top. Arc Resources and Tourmaline in Canada are absolutely killing it every quarter, returning capital to shareholders and growing even though natty is weak. And so on. Is the potential for an extra 2x worth the risk when you get deals like these in the quality companies?
