Baytex Energy Corp (BTE.TO)

There is a chance of a better entry point so he would be a little patient. Tends to react in a volatile sort of way to price changes in energy.

(A Top Pick April 23/13. Up 26.48%.) Thinks there is still more upside. This was quite a disappointing stock from April until when they did the financing for the Eagleford transaction. Hopefully, shareholder approval will be on May 5. His target is close to the mid-$50.

(Market Call Minute) Heavy oil spread has tightened and the Canadian dollar has helped. There is US money flowing into these and it had a good move. He would continue to hold, but not buy more or sell.

A core holding. Benefits form an improving picture for heavy oil. A recent acquisition was accretive and allowed an increase in the dividend. Likes what they are doing and has confidence in the management. A solid 5 year plan for developing their resource base. An excellent track record.

Lightened his holdings because he thought that when the oil price passed $100, it was getting a little rich and as well, he wanted to reposition oil more to gas. If you think oil prices are going to be steady or higher, this is a good operating company.

They bought into an oil field and are not the operator. They just get sent a cheque. The deal was a huge success. It is a little rich, but a well managed company. He thinks you can own it, but there are other names he prefers, such as CPG. He is not a big fan of dividend energy stocks because they keep issuing equity to pay for acquisitions. They should plow profits back into the ground.

Great on execution. Made a great acquisition. Market is working through the value of it. Exposed to the differential with the US and should benefit from the XL pipeline and refineries coming online in the US.

Stock is starting to break out. Yield is nice, 6% and 5% growth rate in the yield over the next 3 years.

Have issued licenses so Canadians can export Canadian oil through US ports and he wants to see how this all plays out. If that does, we are in even better shape. The company has been running well for years. In the Seal area. Very predictable flat line. Heavy oil which they are great at extracting. Pays a good dividend.

Great dividend of around 5.5%. Mostly oil and liquids. Besides all the fundamentals which are in good shape and the wind at its back with the Cdn currency, it clearly has an excellent management team. Focused in Dakota, Saskatchewan and Alberta.

His model price is $51.72, a 15% upside. Has a dividend of $2.64 and it might earn $2.38, so they pay out everything that they have. If it could come back to $36, that would be his Buy level.

A very blue chip Canadian oil/gas. Likes it. Recently made an opportunistic approach to Aurora Oil & Gas (AEF-T) that owns a significant Eagleford oil and gas project, which is one of the best gas plays going in North America right now. Aurora had struggled for several years. This will be an accretive acquisition for them. A solid investment.

(A Top Pick April 10/13. Up 11.85%.) Just made a deal to acquire Aurora (AEF-T) and he thinks there was value there before this. Feels this is a transformative deal for them. He boosted his target price from $50 to $57.50. Sees their cash flow growing now at 13.5% for each of the next 2 years if the deal closes. Company will be a lot more diversified going from 75% heavy oil to 53%. Also, their production base almost rises by about 50%. Balance sheet was very clean before the deal. Not quite as clean now, but still very reasonable.

Company is executing very well, however we are at the top end of the range for the industry. Oil could dip below 90 second half of this year and then you could get in.

Recently added this to his positions. Very nice dividend that he believes is sustainable and will grow over time. A heavy oil provider and should benefit as the heavy oil differentials narrow in over the course of the next 5 years.