Baytex Energy Corp (BTE.TO)

Excellent company. Good management. Very predictable results. They are into heavy pumpable oil. It doesn’t get valued properly in terms of its actual reserves. Have been very smart in shipping oil by tanker to get better prices. New technology is helping them in their extraction levels. Good solid dividend of 5.5%, which can be increased in the future.

Fairly low payout ratio compared to some of their peers. Likes some of their recent acquisitions. Thinks the heavy oil differentials will narrow. Good yield.

Great company. Heavy oil producer in Western Canada. New CEO. Good solid producer.

(Market Call Minute.) Valuation is a little high to him and thinks there are ongoing capital requirements for some future expansion phases which are going to chew into their payout ratios. Very well run company.

Operate in the Seal geological area. Heavy oil but it can be pumped. Have a lot of sections. Good at extracting. Aiming for 40% shipment by tank car. Expecting improved recovery rates. 5.6% yield.

(Market Call Minute.) Likes the yield generating companies but this one is probably a little bit too early. He would like it in the high $40’s before he would buy it.

Nice dividend payer. Price has come down a fair bit recently with the pull back in oil and gas stocks. Great track record of growing and continuing to pay out a steady distribution.

6.6% bond maturing 2021? This is unrated and is low-quality. Long-term for a convertible. When small companies have bonds coming due, they call them and then reissue longer-term ones to put off the need to put a lot of capital in to pay off debt. If you own, check out the conversion premium and the yield advantage over the common underlying. High risk. Better places to be.