Baytex Energy Corp (BTE.TO)

Flanagan, south pipeline that Enbridge (ENB-T) has been building is about the same size as Keystone XL and is set to come on about halfway through 2014. As that comes online, the US markets specifically will start to get some clarity on what Canadian heavy oil price differentials are going to be, and it should be positive for this company, where 80% of their production is Canadian heavy oil. Great, well managed company with a strong Board of Directors that is focused on the dividend. 6.6% dividend yield could have an increase this year or early next year.

Have been living and working in heavy oil for a long, long time. Had a change in management about a year ago and the company has refined their business model about getting the payout ratio to a very sustainable level. Feels the dividend is sustainable and could rise. Good execution. Have a lot of pricing hedges taking place, allowing them to manage the business to get the total payout ratio.

Heavy oil. Prefers CPG for light oil. It has more growth. BTE has no production growth. Yield is safe and it is a good company.

(A Top Pick Oct 11/12. Down 3.36%.) Sold his holdings to go into some other things.

(Market Call Minute) Prefers CPG. Might do better than the dividend.

Likes this here. Heavy oil producer, which runs about $30 right now versus WTI. Thinks this will narrow to $20-$25 by March, so there should be some tailwinds on this one. (See Top Picks.)

(Top Pick Nov 8/11, Down 11.29%) Heavy oil differentials have to come down. This is the time for the biggest differentials and will improve in the summer. 6.25% dividend.

Very good heavy oil player. They have low cost and scale in heavy oil and, of course, recently are doing very well in their Seal project. The issue is that they are subject to the heavy oil differential. Has been a difficult year for Canadian heavy oil producers. Thinks that with more pipelines coming in next year, we’ll see the differential narrowed down to more normal levels and this should benefit as well. Likes the new management. 6.3% dividend yield.

You definitely want to hold off on your energy stocks until the January through to May period. This one has been following seasonal trends accurately recently. Right now, this is basically in a trading range with $43 on the upside and $40 on the downside. Wait for it to break out of this range, hopefully as the period of seasonal strength comes along. The average gain for this one is 25% between January and May.

(A Top Pick Jan 29/13. Down 5.71%.) If you own, he would add to your holdings at this juncture. Stock has been very disappointing over this year but has done everything fundamentally that he expected them to do. Had better than expected Q3 production and cash flow. The WSC discount has widened to about $40 so there is some temporary weakness on this basis. He has a target of $48 in the next 12 months. 6% dividend.

(Top Pick Jul 05/12, Up 7.91%) Horizontal drilling has changed his energy outlook going forward, so he chose to cut this one.

(A Top Pick Oct 19/12. Down 4.04%.) Was selling some of his holdings at about $58, so when it came off, he stepped in and bought more. Subsequently, it went down to about $37. 6% dividend.

Looked at for a long time. Play on oil differential. A more recent acquisition into his portfolios. Good dividend. Growth potential if spreads narrow, which he sees happening.

Very well regarded company. Stumbled earlier in the year and then they put out a very good Q2. Transitioning more towards being a SAGD producer in the coming 2 years. Because it is so well regarded, it trades at around 10X cash flow. Quality of assets are stupendous, but there are other names that have a higher yield and as good a balance sheet and trading at a lower multiple.

(A Top Pick August 24/12. Down 3.79%.) Still likes. They have been quite good in terms of using rail shipment for their semi-heavy oil. Pays a reasonable dividend. Great drilling opportunities where they operate. Have a whole bunch of sections where they haven’t drilled but it is the same as the section next door.