Crescent Point Energy Corp (CPG.TO)

Cut their CapX 10% for this year, responding to the general conditions and differentials. Still guiding to 10% production growth, which is excellent. Acquisitions they did in 2012 will set them up really well for growth. Great balance sheet. Mostly light oil, so you don’t have to worry about heavy oil discount and differentials of the crack spread.

Prefers to Baytex. Better managed company and less dependency on heavy oil. One of the first to utilize rail shipment of oil. 7.2% dividend that he not worried about being cut.

Some of the knocks against the stock is that it is pricey and that they are serial issuers of equity. However, production on a per share basis is growing quite handily. Has one of the most focused teams and has one of the best assets, best management team and best resource base in the business.

Is it worth playing the swings on the stock or is it better to just hold long-term for dividends? This is a core holding for him. Good yield which is sustainable. The problem with them has been equity issues which keeps their debt low but allows them acquisitions. Good management. Good balance sheet and great properties.

Best risk/reward opportunity in Canada. It was rumoured there was a very large US seller and it is thought this selling is finally finished. Feels it has one of the most sustainable dividends. Yield of 7.4%. Organic growth over acquisitions will be the 2013 focus. Feels it will trade back up to $42.

Held for a number of years and likes the yield. It is a serial equity issuer. Latest acquisition was in Utah. They have never cut their dividend. It will get dividend support at this level.

A lot of the energy stocks have been hurting but this chart is showing some support coming in right now. If this support can hold and you can get a nice bounce, it would be good. Oil is coming up as a seasonal play in the next month or so and this would probably be a tagalong stock.

Very protective of their capital structure and their dividend. Also, they won’t go above 1X debt to cash flow. Have to issue shares when they do an acquisition to avoid piling on debt. Last acquisition was opportunistic and was quite large but he is satisfied the company is in good shape and remains on track. Very attractive price at these levels.

We are back into support here. He is starting to favour the energy sector. If the sector rallies, then this one will too. Don’t add to position.

Will benefit when heavy oil stocks start to improve. They have yet to establish any real indications of bottoming. These stocks do well starting at the end of January to the end of May. That is the seasonality of crude oil. They do exploration during the winter and release results in the spring.

What really keeps this going is is that they are very astute at making acquisitions and having great potential in the lands that they buy, for future development. On the other hand, they are paying the distribution on the backs of other shareholders from the point of view that they have such a huge take-up in their DRIP plan which allows them to continue to pay the 7.3% yield. This allows them to dilute you because of the more and more shares they issue all the time. (See Top Picks.)

Bakken oil in Saskatchewan/North Dakota. Always feels it is a good Buy under $40. Had just got too far ahead with their acquisitions. Acquisitions often include stocks and then there is the Hold on the stock, but then the Hold runs out and people start cashing in. They have more or less said they are going to step back a little bit and not do so many acquisitions. Feels the dividend is very safe and have a great DRIP plan. Expect they will be shipping over 40,000 barrels a day by tank car.

Coming off the back of a $700 million bought deal, which has put a massive overhang over it. Through the years, they have continued to add to their reserve life, production on a per-share basis and NAV on a per share basis. Have been doing the right things.

Is a core holding. Have a reputation of being serial equity issuers. It is light oil, which is extremely attractive. You are safe to hold it and it is one of the attractive names in the space. If you are up, trim your position. He wants to know where growth will come from.

One of the most misunderstood and controversial stories. Unbelievably undervalued. Marketplace is having indigestion because of the amount of stock issuance they’ve had from their most recent acquisition. Trading at roughly 8.3X next year’s cash flow. 60% hedged to $90 oil. Has a one-time debt to cash flow basis. Next year they are going to be growing per share basis on an exit to exit basis of at least 3%. Any time it has approached $36 it has been a screaming buy and has rebounded to the low $40’s. 7.5% yield.