Crescent Point Energy Corp (CPG.TO)

Very well managed company. Have built up an inventory for which they are going to be able to drill into and increase production. With this correction, he would certainly be looking at buying this.

The drop in the large-cap energy producers has really been predicated by the drop in crude oil prices. Even though WTI is around $88, the spread that the producers are getting has been narrowing, which is positive. Also, the Cdn$ has been weaker and crude is paid in US$, which dampens the price drop somewhat. Doesn’t think there is a lot of downside left in crude prices. This company has a very attractive dividend and very high quality light oil crude. Net backs are very high and she feels the dividend is safe. You could start picking at it, but you might want to wait until the crude price stabilizes.

Feels that the dividend is safe. Made a great acquisition about a year ago in Utah that has worked out quite well, US$ denominated and close to refining. The biggest issue against them is that they are serial issuers. Every deal they do, they issue more equity. Management has grown the company well. He is positive on this name.

Dividends are healthy and it is one of the most sustainable dividend models he follows. Criticized for constantly issuing equity. They do so because they can. That takes the buying wind out of their sails.

Dividend is very safe. Based on cash flow it is well covered. You will not see an increase for a while. He would buy with new money here today.

(Top Pick Sep 23/13, Up 8.72%) He continues to be impressed with the discipline in their business model. Not every oil and gas company runs their company in a sustainable long term time horizon. They continue to accumulate assets in areas they are already in to have better production from their wells longer term. Hold it as a core holding and collect the 7% yield and see where you are at 10 years from now.

It is having a difficult time. On a seasonal basis, it is performing well. It performs well from Jan-May of each year. It is now in a downward, trend, underperforming the market and below its 20 day moving average. Take a look in January.

Fine company and good dividend payer. We had this correction. You have a head and shoulders developing right now. He thinks it might go a dollar lower before turning around.

Holds it for income clients. The dividend is healthy and safe. The price of oil is vulnerable so it is just a hold here. He is not a fan of the fact that they are a serial acquirer and issuer of stock. They took a break in that and so now feels better about it.

He has a real problem with oil sands oil. The world is really down on it. CPG is a premier company in a fantastic field. It is light oil.

Equity issue hides the actual operating results. You could see a little bit more sell off here. The market is overdue for a consolidation, however. If you can get in here it has good fundamentals.

Just did an $800Million equity issue. All the deals recently in the energy space are under water. This is a long term hold. She thinks the management is outstanding. They are ahead of the curve in crude by rail and get the highest net backs. Canadians can sell their oil anywhere, unlike the US. She would buy it here as it is a bargain.

Doesn’t think the current setback is anything serious.

In big pools of oil and they know where the oil is. It’s all about keeping costs down, which they are very good at. Has dropped a bit in the last little while because the price of crude went from $107 to $91. They are hedged for part of their production, so the dividend is safe. Every time they drill a well, it costs them $3-$5 million so they have to be financed. Just did an issue. That, plus the weakness in the oil market, caused the stock to come off a little.

Oil has stopped going down. They have already drilled 700 wells and secondary recovery techniques can be applied to half of those. They have an inventory of 7,600 wells to which the same technique can be applied.