Arc Resources Ltd (ARX.TO)

An excellent company. Really good risk management. A great management team. Likes the balanced nature of their portfolio. They do very well hedging the gas component of their portfolio, because they are such good risk managers. Their resource base is probably one of the best in the country. Excellent technical team which is done very well with their drilling. Low cost operators. The company has lagged their high-quality peers, which she feels is unjustified. Dividend yield of 2.87%.

(Past Top Pick, June 12, 2015 down 5.52%) An excellent company. Really good risk management. A great management team. (See Top Picks)

This is considered one of the best of the operators. Low cost, focused on natural gas with good oil components. Believes the balance sheet is in good shape. If you see this back up by $2-$3, it would be a great buy.

Arc Resources (ARX-T) or Altagas (ALA-T)? 2 very different companies. With this, you get both gas and oil exposure with a 60/40 split of gas to oil. He likes this, and thinks it should be a core holding in any energy portfolio. Have some tremendous assets in the Montney with a lot of running room, particularly with Dawson and Attachie. They are spending most of their capital and growing those 2 plays, and easing up on their Saskatchewan Cardium assets. Recently cut the distribution, which he agrees with.

A natural gas specialist. This is a “Best in class” company in the oil/gas space. Has been able to maintain some growth in this environment as well as maintaining its balance sheet. They are really good at hedging. Have enormous torque to the Montney gas play, and there is a lot of upside to the story on this.

Hasn’t been adding any energy exposure for the last 1.5 years. This is a very low cost producer, located primarily in Alberta. Has an attractive yield. One of the higher-quality names. Supply growth in energy is still outpacing demand growth.

In exploration, development, crude oil, natural gas and natural gas liquids. They are in 5 core areas. One that they are putting a great deal of emphasis on is the Montney area, where they have had great success. Trading at 6 to 8 times price to cash flow. Has a very strong balance sheet and very good participation in their DRIP program. Dividend yield of 6.56%.

This is one of those “steady Eddie” gold plated names, which he typically does not buy because it typically does not become a price where you can usually make some really good money. Has held up fairly well, down 20%. His position is to buy names that are down 80%, where there is blood in the streets. 7.2% dividend yield.

One of his 2 favourite energy stocks, with Crescent Point (CPG-T) being the other. Doing great work in the Montney area, building some gas plants. This is a long-term hold. He probably wouldn’t put new money into it today.

This is a great company. Hasn’t owned it for a long time. His company has it as a sector outperform with a $20 target. The yield is sustainable. This is one that he might be adding.

(A Top Pick June 12/15. Down 15.05%.) Still likes this a lot. Had some challenges with their Q3, but that was very temporary. Really likes the asset base. Quality management team. Even though they have exposure on the natural gas side, they have done well with their hedges. To have natural gas exposure with a company that also has a lot of oil exposure, it is definitely a healthy way to go.

Only owns 2 energy stocks, and this is one of them. This is part oil and part gas. Has held up relatively well. Likes management and its land position. Balance sheet is good. A dividend with a resource stock is never 100% safe, but in most conditions this company’s dividend is safe. He likes the long-term outlook. Dividend yield of 6.6%.

A liquids rich gas producer and one of the grandfathers in the Montney space. A name that will let you sleep well at night, because they are such stewards of value and value creation. Never cheap, but always delivers. It has weathered the storm better than most, probably because of the strength of its balance sheet. Well hedged at about 40% through 2016. Can still deliver growth of probably 5% from growth and 6%-7% on yield.

More gas than oil. It is strategically located if we could ever get any of the gas lines built to the West Coast. They have lots of reserves. Thinks it will pick back up again, but we need a couple of things to happen. We need the energy complex to get some money in it. The sector is cheap. Dividend yield of 6%.

Doesn't think that the dividend is safe in this sector and recommends staying away from it.