Bellatrix Exploration Ltd. (BXE.TO)

One of the companies that has been successful in attracting joint venture capital. Feels that a $10 price target is real and that production growth is going to continue at a rapid pace. You’ll probably see a little more in terms of natural gas production growth side, but liquid natural gas is a good thing to have.

(Top Pick Apr 29/13, Up 22.22%) He is still fully invested in it, took nothing off the table. There is another Korean partner interested in a different part of the property. Will reassess at $10.

Very impressive management team. Have been building a resource as well as production, pretty much organically. Through the years they have done very well. Lately, to add more confidence to the team, they’ve announced 2 JV deals that will help them fast track and develop some of the land. Roughly about 12 years drilling inventory and have about $300 million in JV now. Sees a lot more growth to come. Valuation is extremely attractive at about 3-4 times cash flow. Very conservative on the debt front. Can see the stock doubling from here. (Host comment: Street sentiment is that the stock will grow 40% in the next year.)

(Market Call Minute.) Just announced a joint venture. Looks interesting. Just bought some at $7.06. He has a $10 one-year target.

(Top Pick Jan 24/13, Up 1.75%) He is happy with the 30% he has received and questions above return calculation. Thinks it will continue to move up as they prove out their asset.

Mostly natural gas. Really starting to put things together. Stock has done really, really well because investors on Bay Street tend to gravitate towards companies that can outperform. Last couple of quarters have been phenomenal. Solid management team.

(A Top Pick June 25/12. Up 155.22%.) Took some profits but still has large exposure. Great balance sheet. Have 2 plays that make great industry-leading economics, 1 gas and 1 oil. Have had “best in class” in terms of drilling up those plays. Importantly have been able to structure some pretty interesting joint venture arrangements with foreign parties and Grafton Asset Management of Calgary. Trading at only about 4.5X on an enterprise value, a debt adjusted cash flow basis.

Used to own but switched over to others. He has it as an Outperform with a $9 target. He is looking at acquiring smaller companies. The problem is that once production gets to a certain level, the economies of scale do not have the leverage to the balance sheet. Not a bad pick.

(Top Pick Jun 25/12, Up 128.33%) Struck a deal with Koreans. A core holding for him.

Loves cash flow and potential catalyst given their tremendous resource base. Cheap given the growth they have (40%). Best in class production costs. Can expand resource and growth even more. Catalysts are also joint ventures. They are particularly important for this company.

Likes this one quite a lot and has just started buying. Had a stellar track record over the last couple of years. Sitting in 2 very economic plays. Should be closing a joint venture agreement soon with a South Korean oil company. Trading around 3.5X 2014 cash flow.

(Sell or hold?) He would continue to Hold. This company is firing on all cylinders. Essentially they inked a deal with Koreans to fund the drilling of some of their Cardium wells in west central Alberta. Producing something like 17,000 barrels per day. 60% is natural gas.

Recycle ratio (For every $1 they get out of the ground, how much was put in?) is about 2.9 to 1. Debt to cash flow is reasonable at 1.6X. Just did a $300 million joint venture with Koreans to accelerate value on their Cardium and think they could do another joint venture as well.

Dry gas and liquids. Just completed a joint venture. Bought more recently. Nat gas will be in the $5 range in two years.

Feels management knows what they are doing. Major problem is still prices in natural gas. Feels the company has a lot of upside. Still have a debt load to deal with.