Baytex Energy Corp (BTE.TO)

The king among heavy oil companies. Assets have great depth to them. A great dividend player. A little better leverage in smaller names.

(Market Call Minute.) Trimmed his position recently. Over a long-term, it is a Buy but, given where oil prices are now, he has taken a little bit off the table.

Close to 5% yield but it is a high payout ratio.

(A Top Pick July 13/12. Up 8.9%.) Has cut back a bit on this because he wants to participate a little bit more on Brent rather than Canadian pricing.

Bonterra Energy (BNE-T) or Baytex Energy (BTE-T)? Really likes Baytex but it’s a little pricey, so based on valuation, he would choose Bonterra which is a little cheaper and has pretty good growth.

(A Top Pick Jan 29/13. Down 8.17%.) Has been disappointing but believes it has now bottomed. Likes the long-term growth prospects. Thinks surprises could be on the upside. Has a target of $50 on this. Dividend yield of 6.5%.

Recently bought because of narrowing differential between oil prices. Nice yield of 6.6%.

7% yield. Shares have been under incredible pressure because of the sector. Best in class, though. The spread between Alberta and WTI is now about $14. At the worse it was around $40. Spread between WTI and Brent has collapsed. Used to be $60 and now is about $22. This is very good for them so he would buy at this point in time.

There is a perception that they are running out of inventory in their Seal sector. They are going more towards a SAGD route which have higher capital efficiencies but longer reserve life. Views that their dividend is safe. He would be more interested at around $34 area.

Trend is down and support has been broken. It may be starting to base. Wait for it to consolidate and break out. Seasonals are not necessarily favourable for oil and oil stocks this time of the year.

Thinks the market is concerned that they have drilled their best wells at their Seal play but he thinks those fears are overdone. You’re probably going to see that coming up in the back half of this year. A top pick on solid growth and capital efficiencies. A catalyst for this name, since it is heavy oil, is if Keystone XL goes through and if they can produce the well rates that he thinks they should.

Thinks there are positive dynamics going forward for Canadian heavy oil prices with differentials narrowing to WTI, which will benefit this company. 6.82% dividend. Good conservative management.

Great company and well run. Low-cost producer. Great dividend yield. Thinks oil prices are stabilizing around these levels. Seasonably, people buy oil stocks before the driving season. It is really about economic growth because oil is an economically sensitive commodity and if you see economic growth continue, it will help oil prices.

(Top Pick Jun 15/12, Down 2.75%) Kept this one and it has a good yield. Continue to build production.

Baytex Energy past two quarters have been weak. It is focused on heavy oils and differentials. She owns it and has bought some recently. It could still have a downside but thinks they will be okay.