Eric Nuttall: Canadian energy producers most undervalued on the planet

A group of heavy oil Canadian producers are being extremely overlooked by investors, according to one portfolio manager.

Companies within the energy sector are trading at historic lows while their balance sheets are the best they’ve ever been, Eric Nuttall, partner and senior portfolio manager at Ninepoint Partners, told BNN Bloomberg in an interview on Thursday.

"Our view is the most mispriced energy equities on this planet are Canadian heavy oil names because we can get decades’ worth of free cash flow (FCF) for free," he said.

These heavy oil producers have pledged a return of 75 per cent to 100 per cent return of FCF to investors once they have reached their leverage metrics, Nuttall explained. He believes that most producers will meet these targets by the end of this year on the forecast of oil trading at US$80 per barrel.