Crew Energy Inc. (CR.TO)

It is one of about a dozen companies that will benefit from a positive FID statement on a west coast LNG project. He thinks the announcement of such a project could be weeks away. The company has one of the largest Montney land holdings in BC and it is trying to monetize that into real cash flow to de-risk the asset. They have had to sell other assets to keep things going.

The debt is simply too high for him to invest in. They also have some issues with First Nations peoples. This has too much hair on it for him.

The book value is $5.74. The balance sheet is not a problem. They have growing production to 23,583 boed. They have $0.14 per share in cash flow. He thinks this could rise to over $1.00 per share in the next few years.

He likes it and owns it. Book value of $5.74. Balance sheet is in good shape. Sees tremendous upside if price of Nat gas goes up as he predicts.

They have 39% debt. The stock is very cheap. (Analysts’ target: $3.37).

Oil producers have been a mixed bag. This one is in the 'dog' category. It consolidated, then downtrend, then consolidation, then downtrend. It is forever breaking down. He would say he does not like the chart. There are other oil stocks if you want to be in the sector.

Crew vs. Bonavista ( BNP-T ) Double down? Both have high weighting to gas, which will be a drag. Crew is cheaper on valuations, so go with that one. You don’t want to fight OPEC, oil will be range-bound.

This is a good way to benefit from Shell’s decision to go ahead with LNG at Kitimat. He would caution this is a short term trade as the real benefit will not likely come until 2023. A short term speculative buy.

This has been absolutely pummelled and sucked into the natural gas vortex. It’s a good way to play an upcoming positive decision from Shell. You could see a meaningful rally in the next few months.

The company’s production is 75% natural gas. Book value is $5.83 with a cash flow last year of $0.73. The price at time of interview was $1.83. In 2009, this stock went from $2.38 to $21.56 within two years. His one-year target is $7. (Analysts’ price target is 3.04$)

He likes it. It is on his action alert buy list. It has been beaten up. Debt is not a problem. Book value is $5.80. It is a yoyo stock. He thinks it has lots of upside. They will be able to show much better cash flow in the second half of 2018.

74% natural gas. They just added another facility. Book value was $5.70.

Not one of his favourite ways to gain exposure to gas. They have slightly higher average than their peer group to ECO pricing. You are basically getting no production for the next year because they shelved one of their main infrastructure projects.

This is always a tough one because they always seem to be on the cusp of breaking out, but it never seems to happen. They have the Saskatchewan oil asset that has been for sale, and the market is always waiting for the hurdle of higher cost production to get it off the balance sheet or off the books. Great Montney asset. This is a long-term story.

They like it for the energy exposure. An extremely unleveraged company. (Analysts’ Target: $8.48)