Moody's Solid Rating

The markets seem to be only rewarding commodity names.

But finally, one of our commodity stocks is participating, and that's Canadian Natural Resources.

We've done a number of podcasts on Canadian Natural.

We started buying it in 2022 on the simple thesis that it has long term reserves.

It's the best operator in the oil and gas space.

It was trading at a discount to large super majors like Shell and BP.

And we thought that was ridiculous because CNQ has better assets, way better operations, long life reserves, as we talked about.

And lo and behold, after three, four years, the stock finally worked.

I remember the stock when we bought it didn't work for a year or two.

But that's how markets work.

If you're a long-term investor, you focus on the fundamentals, and if the fundamentals do fine, the stock price will take care of itself.

Yeah, I think there's a few reasons contributing to the strong performance of not just Canadian Natural, but kind of all the Canadian heavy oil companies.

Yeah, I read today that the Canadian Oil and Gas Services Index is at its highest level since 2008.

So you haven't made money.

I mean, it's at an all time high since 2008.

That means you haven't made money on oil stocks for near 18 years if you held them.

So you have to be careful, obviously, with commodity stocks, buying and holding them.

They're more of a trading vehicle.

But there's good reasons why CNQ is more of a long term investment.

Right.

And I think the first thing is that oil prices have been going up, partly because of the, well, not partly, but largely because of what's the uncertainty going on in Iran right now.

For sure.

For sure.

Oil prices are at about $66 a barrel.

I think oil was well below $60 for a good chunk of 2025.