Bonterra Energy Corp (BNE.TO)

Completed an acquisition of Spartan last quarter so results showed production was up. Because of what they are planning to do with this new mine you are probably going to find that production for Bonterra is going to decrease in the 2^nd half of this year. There is a little more gas than he had expected there would be. Yield is very secure. There are better choices out there.

One of the largest operators in the Pembina region, which is Cardium rich light oil. 12,000 barrels per day. Recently made an acquisition of Spartan Energy which they got on the cheap. Very high net back oil in this area. 7% healthy dividend on a very low payout ratio of under 100%.

Spartan was a good acquisition for them. Will take a little time to integrate but should do well over the back half of this year. This is one of the better names out there. Yield of almost 7%.

Acquired a very low decline asset for about 3.5X cash flow, which was a steal for them. On the back of that acquisition, they increased their dividend so he feels sustainability of the dividend is not an issue. Extremely thin in terms of trading as people don’t want to sell. For a retail investor it is probably not a bad pick.

There is nothing wrong with it. It is in the hold camp. No catalyst. Not sufficiently Washed out that there is about to be a massive turn around. If you find a better opportunity then maybe take it. Yield is safe.

(Market Call Minute.) For him, this would be a Hold or a Sell in order to buy Crescent Point (CPG-T). Multiple is a little high.

Holds this management out consistently as excellent capital allocators in Calgary. Have a very lengthy record of creating value for shareholders. They raise capital judiciously. The holy grail of increasing production per share, while at the same time paying a consistent and growing dividend stream.

(Market Call Minute.) She wants to get a little more clarity. The debt is creeping up a little bit. She is watching to see if they will address the debt.