Canadian Natural Rsrcs (CNQ.TO)

Excellent at how the management has consistently delivered on what they are trying to do. They brought an oil sands mine on stream on time and on budget. Very few can do this. Still produce a tremendous amount of free cash flow. Amazingly diverse group of assets. It is compelling. Over time it should re-rate itself.

Great management and incredibly well run. A fantastic company. Dropped to the lows of October so he would look to buy more at these levels. At some point oil will stabilize and then go up.

What is really important to look at in oil companies is Cost per Barrel. (He had this information in a Globe column 2 weeks ago.) This is the key number. With oil at around $74-$75, this is a time you have to be picking away at these types of things. On the other hand, maybe you should wait a month or so when oil moves up from $74, and then start picking away. There is some value here right now.

2.17% dividend. He sold BCE-T to buy this position. This is a great opportunity to own some really cheap assets. Oil prices are stable out West relative to WTI.

Amongst the senior producers, this is the one that she likes the best. She wants to see some stability in the crude oil price. Once we get there, this is definitely a name that she might be adding to portfolios.

You have to be very disciplined on the producers. Buy them low and Sell them high and you shouldn't be greedy. You are never going to get it right at the bottom, but he thinks it is not in a bad range now so try to get it around $40 or below, which is a pretty good Buy on this company. Extremely well-run.

Great Canadian oil company. Trades at 5X cash flow. About to throw off about $6-$7 billion free cash by about 2018. Great management. This pullback is a great opportunity to buy the stock. Yield of 2.35%.

Take advantage of this oil price selloff to pick this up. Throws out an incredible wall of cash. 4 years out it will be extraordinary.

This stock was definitely oversold. The dominant name in Western Canada with additional operations in the North sea and Africa. Extremely well managed. Solid property and good acquisitions. Low cost of production. Cash flow is the key for this company. He would own this for the long-term. 2.7% dividend that will grow.

With oil you might see some downside, but the marginal cost of oil production is still relatively high. They have pretty decent gas assets that are undervalued. Thinks gas prices will trend higher over 2016/17.

Their cost base could be $30-$50. They are a low cost producer. New infrastructure, he hears, is in the $65-$70 range. It is the Canadian price, not the West Texas price that you go by. He thinks we will test below $90 in crude and that would be your opportunity to step in.

His favourite. Superbly run.

For the 1^st time in decades, the US is in a net energy surplus, they are producing more energy than they are using. He doesn’t believe this is a game changer for the oil sands. This oil will get produced and will find its way to market. Whether that market is in Asia or the US, he doesn’t know. Every year this company gets more efficient in their production, and as they ramp and scale up, the cost per barrel of the refining process goes down and down. Because they are on an inexhaustible reserve with no exploration costs, they have a real advantage over traditional production/exploration companies. He is a believer in this.

Thinks the market is really ignoring that this company gets a lot of their effective pricing from Western Canada Select, which really hasn’t changed much. Differentials have narrowed, so the “spread under” has gone up. Thinks that on this next quarter, as long as oil doesn’t drop another $10, this should be a nice little earnings release. Ultimately they expect to have $5.5-$6.5 billion of free cash flow by 2018.

This, along with Suncor (SU-T) are probably the 2 premier energy stocks. Has done well this year, but has been peaking out in the last year. The cyclicality is such that this is the right time of the year.