Bruce Berkowitz on Canadian Natural Resources Ltd. and Penn West Energy Trust,

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Aug 25, 2006
The market also seems to be undervaluing current and expected cash flows from our non-

U.S. energy companies, Canadian Natural Resources Ltd. and Penn West Energy Trust, which represent 9.27% and 6.83% of the Fund’s net assets, respectively. Our companies have the people, plans, and assets in place to dramatically increase production of higher-value products — the ultimate hedge against unforeseen lower prices. Meanwhile, geopolitics, a dearth of cheap and easily obtainable supply, and the world’s increasing desire for basic pleasures we take for granted argue for a stubbornly high oil price, currently over $70 per barrel (in both spot and forward markets). Even so, a gallon of gasoline remains cheaper than a gallon of milk in most of the United States.5