Crescent Point Energy Corp (CPG.TO)

Very high DRIP participation of about 60%. Also, have a very disciplined program of hedging out 3 years in oil production. Feels that in years to come, a lot of the water flooding they are doing in 2 key plays, is going to lower the decline rate and make the dividend more sustainable. With debt to cash flow at about 1X and lots of favourable hedges in place, feels the 7.1% dividend is very sustainable.

Looking at the price to cash flow of 8.4% this year and 7.6% next year, you have a very decent yield of 7.1%. Consensus of a share price increase is 17.2% for about a 4% return. This is one of the premier oil plays in Canada. Have been aggressive in acquiring companies with interesting acreage and/or production.

This will depend on oil prices. Light oil producer. One of the best in Canada and one of the best yielding. Rock solid balance sheet. 7% yield.

(Market Call Minute) Not one of the leaders currently.

(Market Call Minute) Expanded into Utah.

Switch from Canadian Oil Sands to this? That would be a great move. 100% of Canadian Oil Sands dividend is currently being paid by debt and they have some large CapX requirements for the next couple of years. Thinks fair value for Crescent Point is $42-$43. Would Buy in the $37’s and Sell in the low $40’s.

Trading at 42X current earnings. If he were to see it go a few dollars over $40 again, he would be tempted to take profits. What bothers him is that they don’t earn their dividend. In order to pay for it, they really depend upon a huge uptake in their DRIP plan where shareholders are diluting themselves to get the yield. Extremely good land position but have been issuing equity to purchase this.

Just recently purchased this. Stock is dealing with investor fatigue as they have been a chronic issuer of equity to buy oil/gas producing properties. Excellent management. He is just concerned right now about heavy oil differentials. One of the first out there to use rails for shipping their stuff to market at very good prices. About 7.5% yield. Expects to see it trading at $40 within the year.

(Top Pick Jan11/12, Down 9.28%) Disappointed a number of investors over the last little while. Did more equity issues than people expected. Still owns and likes it and it is a good dividend payer. Suffer from the differential in commodity price. Thinks they will do reasonably well this year.

Did 3 equity raises last year which he thinks irritated the market a little but they are well capitalized now. Dividend yield of 7.15%. Have production in the Bakken area as well, which gives a higher valuation and better growth. Have been proven to deliver on production growth and acquisitions but haven’t turned this into a good move on the stock price. Thinks they are overdue.

Owns for income accounts. Does not trade off earnings, but off cash flow. 7.1% dividend. Has not performed well until recently.

Over 7% yield. Did a bunch of acquisitions. Trucking a bunch of their Bakken to the coast. Thinks they will surprise to the upside. Hinted you could see a dividend increase over the next couple of years.

A Bakken story (North Dakota and Saskatchewan). Lighter oil and closer to market. Great operators. Bought this one for the dividend payout. Keep diluting the stock either through acquisitions or new issues but have now indicated they are going to sit on the sidelines a little bit. Has been buying under $40. Company’s very good at cash flowing and paying their dividend. Yield of 7%.

$36 is good support. There is a gap just below $40 and if we punch through it, it will go to $47. A great name. Relative strength is high.

Likes it here. Has been disappointing lately with the price of oil been stagnant or coming down in the mini-correction or slowdown we had. If you look at some of the IEA data going forward and the pickup in growth in emerging markets, you may be surprised at the very heavy demand for oil. Looking for $49.50 and with the yield, it gives you a 35% return.