Crescent Point Energy Corp (CPG.TO)

His company has a $47 target on this and doesn’t have any concern about the dividend. A very well-managed company. When the time is right, this is one that he would definitely be adding to.

This has never been one of his favourites. It has a model price of $4.76 (yes, four dollars). They pay out too much and are making a lot of capital expenditures. It had a bounce and looks to be testing his EBV line at $22.60.

On his list of about 10 things he would like to own, but his strategy has ended up slightly differently. If their hedges roll off and oil is still that $40-$45, the cash flow will be impacted. His hunch is that this company might get away with getting through this. Extremely well-run with very high margins. Great company.

One of the granddaddies of the energy sector paying dividends. A core holding for him in any of his income portfolios. In a good position to be opportunistic in this market. There is a lot of talk of them spinning out assets, may be into a merger with a more troubled oil producer, to create a more growth oriented company.

Likes this company. Pretty conservatively managed in that their balance sheet is not significantly leveraged. As part of their whole corporate thing, they Sell forward. This has hurt in the last couple of years, but is now helping them. Dividend is safe for the next 6-12 months if oil prices remain $50+ going on 12 months.

If he owned this kind of company he would get rid of it in a heartbeat. He doesn’t believe these types of companies’ dividends are sustainable nor that their business plans are sustainable at $50 oil. They have no control over the underlying product they sell.

(Top Pick Feb 24/14, Down 14.10%) Thinks dividend is going to be maintained, but you have to be ready in case the oil price stays down. It would still be a great company at a lower dividend.

Had been buying more of this at around $25. One of the best oil producers in Canada. They are also in North Dakota. They hedged by selling forward a good part of their 2015 production. It is not without risks. He is concerned and is watching it. If the price of oil continues to hold in the current area, he would become more concerned. If the stock price dipped down a little, he might buy more, but otherwise he would be cautious. If you are going to hold an oil, this is the one to hold. Good dividend.

He owns none of the Canadian Commodity sector. Oil stocks are priced as if oil will rebound quickly to the $80-$85 range. If oil stays below $70 then over time these oil stocks should all come down and that will be a buying opportunity.

There has been a big move in the stock and in the energy sector in the last month or so. Relatively speaking, this is the name you want to be in if you want to make an entry into the sector. She feels the dividend is safe. Have done well with cutting their CapX programs to make sure they can pay the dividend. Because they have the dividend reinvestment program, 30% of the dividend is paid for in shares, which gives them the ability to make sure that they have enough cash on the books to pay for the rest of the dividends. Have a very strong balance sheet, relative to the group, and a well regarded management team. If they transact again, they will issue shares, which might be a time to enter.

Light oil. Good company. The real issue is the macro issue. This is the de facto Bakken/south east Saskatchewan player. The dividend is fine. It will be under pressure, but overall, this is a buy.

Well-run company. Good dividend coverage. The $35 range is the 1^st place where it is going to have a little bit of trouble. Some of the indicators are starting to get overbought on the short term, which means it is probably going to start to test the December low.

Have done lots of equity issues over the last 5 years and a lot of viewers have bought because of this. Because of their hedges he thinks they will not have to cut their dividend. They have already had a good move to the upside and there may be names that you could get that would do better in the short term.

He is not buying it here. It is not trading at enough of a discount here. The balance sheet is not in bad shape and they can grow their dividend in the next couple of years. They hedged a lot of their production for a year or so. They will be fine because of their hedging.

Have been cutting CapX and stand ready to cut more. In spite of this, they still expect production to grow by about 9% this year. 41% of their 2015 production is hedged. Very sustainable relative to their peers, but even with these hedges, $50 oil and $3 natural gas, he feels the balance sheet will weaken and debt to cash flow will climb to 2.3% and cash flow per share will fall by about 33% and the effective payout ratio will rise to about 158%. The dividend is probably sustainable for this year. The only way he would buy this is if you believe the oil price weakness is temporary and you will have $55-$80 oil within the next 12-20 months.