Baytex Energy Corp (BTE.TO)

It’s been touch for so many Canadian energy companies over the last few months because of the price differential. They are into heavier crudes. There are a number of refineries in the US that have shut down for retrofits. Pays a good dividend so it pays you to be patient. His target is $50 and then he would take a hard look at it as to whether to scale out of it.

Very strong balance sheet. Predictable growth and production, close to 8% a year over the next 5 years in the heavy oil end. Differentials should improve gradually over the summer through the 1^st half of 2014. Looking for low double-digit returns over the next 5 years. Yield of 5.72%.

Differentials right now are at extremes for heavy oil. This company is adding to their refinery, which should help to alleviate some of the differentials in heavy oil spreads. Have upped their guidance this year unlike many other companies. Good balance sheet with debt to cash flow of about 1.4%.

One of the great themes for 2013 will be the reduction in the heavy/light differential from its current levels. Historically low. This is going to improve over the year. Stock is down over 25% for the year. Dividend yield of 5.96%. On a total return basis you are looking at over 30%. P/E ratio 18.8%. EPS $2.62.

(Market Call Minute.) Been adding to his position but there is potentially a better buying opportunity in the coming months as the differential continues to widen. 6% yield.

Has been a great performer until the last 6 months of last year. Lack of performance in the last half of last year was really because of 1) departure of the CEO last summer and 2) the fall of heavy oil prices. This company has done a great job in growing production and protecting the dividend. He would take advantage of some of the uncertainty.

(Market Call Minute.) Has some ability to come back.

Thinks it will run back up to $59. He did a study last year of those beaten up in tax loss selling and they were up an average of 15% in the first half of January.

Core position for him, dividend is safe. A casualty of the fact that we can’t move the oil to where the market is.

(A Top Pick Dec 9/11. Down 18.22%.) Taking a beating with the rest of the group. He is taking this opportunity to add to his position. Good dividend over 6%.

(A Top Pick April 27/12. Down 12.83%.) He is in the process of reviewing all Canadian oil because of concerns if there are oil reserves rising in the US, it might affect Canadian oil. But he still likes oil as a fundamental story. This one is a great up-and-coming story.

Very good company and has everything you want to see. Heavy oil producer with a low decline rates. Sold half his position a little while ago when he got worried about differentials blowing out but he’ll buy that back at some point. A half position would be good at this time.

Reported a good quarter. A healthy hold. A lot of heavy oil and a little expensive because of the dividend. It is not a good entry point.

Heavy oil discount in Canada has been widening, mostly because of seasonal reasons and refineries doing maintenance. Those are temporary issues. When you look at this company, they have very good land positions and very good heavy oil assets, which they continue to grow. Pays a good dividend of 5.8%, which he feels is sustainable.

Heavy oil producer. Heavy oil is priced differently from WTI. WTI is at $85 and heavy oil is priced on a differential basis from that. Thinks these differentials will probably stay wide over the next month or so, which should present a buying opportunity. 5.8% yield.