Crescent Point Energy Corp (CPG.TO)

Although he would call them serial acquirers and issuers of stocks when they buy something, they are now set up for probably 8-10 years of drilling locations and growth. Has a target of $50. 6.5% yield.

(Top Pick Oct. 05/11, Up 18.78%) Best play in the Balken that he has. More dividend increase is questionably until there is a higher oil price.

Feels that everybody buys this because of its tremendous yield. Extremely well run oil/gas company. Have made great acquisitions. Have promising properties for drilling, but in order to do that they depend a lot upon their DRIP program, which largely goes to fund the distribution that goes to shareholders. You tend to dilute yourself in order to get money today. So far the formula has worked but it can’t go on forever. At a few dollars higher, he would be looking at exiting.

Canadian Natural Resources (CNQ-T) or Crescent Point (CPG-T)? Both are good companies. In this case you have the higher yield and they have been able to grow production so have been able to raise distributions over time. CNQ is more of a capital gains story.

Loves the management team. Have $45 of value in their assets not including water flood, which could be another $15. Their hedge book and quality of their assets very much supports their dividend yield of about 6.5%.

Feels the 6.37% yield is sustainable. As well, has about 60% participation in its dividend reinvestment. Also, have a program of hedging out production for up to 3 years so feels the company has locked in some of the economics of their Saskatchewan oil plays. Recently financed over $600 million of equities and feels debt to cash flow on a one-time multiple is a very prudent level.

One of the “best in class” operators in the light oil Bakken play. Still has growth, albeit slower compared to the last 2 years. At these levels, it can afford to make very accretive acquisitions to continue their portfolio growth. Think you can make about 7% at these levels. This has run-up quite a bit and her outlook on oil isn’t that robust so expect it will be range bound and will be more of a trading scenario. 6.87% dividend yield.

Domestic oil price had softened and then recovered from the end of June. Stocks were whacked. Owns and likes CPG because they do things very, very well and a great percentage of their assets are oil. You get the least discount off of WTI and they are well managed. They pay dividends and he can see it growing and it is very, very attractive. A perfect holding for him.

Not worried about this company issuing shares as long as they are doing it for a good reason. In this case, they issue shares when they make an acquisition either of a company or properties for future development. Doesn’t worry about the DRIP as this is raising money cheaply.

Shipping oil by rail. Have a huge DRIP program that is pumping equity into the company all the time. Acquisition record is excellent and they tend to integrate them fast. When it gets close to $40, it is a Buy and when it gets close to $50 it is a Sell. 6.6% dividend yield.

(Top Pick Feb 27, 2009, Up 123.55% Total Return)

90% producer of oil and more than 50% of their production volumes are hedged between $89 and $95. Just increased their production guidance by 7% in the last quarter. 10%-15% volume growth historically and thinks they can continue the 10% growth. 6.72% dividend yield helps in a slowish economy and market.

Likes this one. 6.6% yield. His only criticism is that they are serial issuers. Have done a lot of acquisitions and then they do an issue, which tends to flatten the stock out for a while. Had a blowout upside 2^nd quarter, 10% above the streets expectation and then did an acquisition and an issue which dropped the stock price. They have a decade of possible drill sites so there is really good growth over time but they need to stop issuing.

(Market Call Minute.) Have delivered well. Valuation is somewhat high and they tend to issue a lot of equity all the time but they’re great on production growth.

It broke its base. First level of resistance is $43 or so and he thinks it will move to that. Can it get through that? Probably if it hits that level if the sector in general stopped moving up.