Baytex Energy Corp (BTE.TO)

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.

Heavy oil. Missed on quarter so you see the drop a little worse than the group. Differentials have widened a little in the last few weeks between light and heavy. Payout ratio of over 100%.

Very high quality name. Still under pressure from oil differentials but is of the opinion that although. they will continue to be volatile in the near-term, they’ll gradually come in to normalized levels of 18%-22%. Have their own trucking operations and hedge a fair amount of their production, either through physical hedges or through real capacity. Expected long-term annual growth of 8%. Yield of 6.51%.

(A Top Pick April 27/12. Down 15.95%.) Sold his holdings about 2 or 3 months ago because he has some concerns with Canadian oil that is tied to the US and we don’t have the pipelines to ship it. His company has it as an “outperform” with a $53 target on it.

Very well run company. If oil prices stay up where they are, he thinks the 6.7% dividend is sustainable. As a heavy oil company they have been suffering from some of the spreads on the heavy and light oil differential. Well-run but they are at the mercy of the underlying commodity.

(A Top Pick Jan 29/13. Down 15.64%.) Great Buy at current levels. Cash flow is unchanged from his previous forecasts. Very strong balance sheet and good production growth over the next 4-5 years. Yield of 6.86%. Thinks it will yield healthy double-digit returns.

Sold his holdings. Thinks the WCS spread is going to continue to widen so he would be sitting on the sidelines. This is one you want to pick up after you see a rebound in global growth.

Doesn’t know exactly why it has broken down through the $40 level. Expects people may have got concerned that the dividend is potentially under pressure but he doesn’t see that. Heavy oil producer but has been quite successful in shipping by rail. One of the best, most efficient producers going. Will probably be adding to his positions.