Cenovus Energy (CVE.TO)

Energy stocks in Canada will go sideways for a couple of years. With new money be a buyer on a dip. Suggests XEG to play energy. He wants to be a seller of energy stocks in general.

A good place to be before the run. SagD operations. He trimmed oil recently and would not have a problem trimming this one.

Nothing wrong with the company but if you want the Canadian energy sector you want to be diversified. You might want to look at ZEO-T, an ETF with equal weighting. It should get a better long term result. He is a big fan of it and it pays a dividend of 3%+. But there is nothing wrong with CVE-T. The sector will be range bound and you should take money off the table when it is weak and then wait to put it back in.

Benefited from the strength and refining margins in Nat Gas. Faltering the last few quarters and things they are turned around right now. Would hold on to it.

His energy exposure is specifically in regions where there is very rapid reserve growth and he doesn’t feel this company is there. The other area would be the high-yielding energy companies, with very low decline rates and this company is not in this camp either. (See Top Picks.)

Has lagged other seniors a little bit this year because of some operational problems but the long-term outlook is very good. 8%-10% production growth per year. Chances of a dividend increase later in 2014 are fairly likely. Expect the stock will be in the mid-$30 in the next 1 to 2 quarters. 3.1% dividend yield.

(A Top Pick August 27/12. Down 3.29%.) Had a bit of a miss in the last quarter. Turnaround at Christina Lake is taking much longer than they thought. Doesn’t feel the current price reflects the potential. Feels there is a lot of production growth in their future.

(Market Call Minute.) Expect this will now go back to $34.

Their numbers are not doing what they should be doing. Was hoping this company was the low cost, heavy oil producer in Western Canada. It doesn’t mine for oil, it does the pipes and the steaming in the ground which is cheaper and more efficient and has less environmental impact. Just sold his holdings because cash operating costs per barrel of oil has gone from $18-$19 to $24 and he can’t figure out how they are going to come back. 3.2% dividend yield. (See Top Picks.)

Production this quarter was up by 10% but earnings were down for a number of reasons. Stock is really done nothing for the year. If you can buy it under $30, it is probably a great buy. Good name for the long-term. If we do have an erosion in the oil price over the next couple of months you might want to hold off Buying it because it may get down into the $27-$28 range. This one gives you yield, has a good balance sheet and has good growth prospects.

Consensus is that dividend is safe. The energy sector is stuck in a range for many years to come.

They have been the blue chip gem amongst the 5 we have in Canada. Their main project, the oil sands project has some of the best oil ratios. They had a little hiccup in their operations which is a buying opportunity. They used to be the go to name that would not have hiccups but now it has reversed. It is a great core holding under $30. 4% dividends and 6% growth.

Feels the growth profile of this company is better than some of the others because they are very big in SAGD and are good at it and have great, long-term properties. Have 3 properties now and expanding. Have a couple more that, in time, will come on. Growth production will be about 10% a year going out to 2020. Increased their dividend 10% this year and, if the growth production comes on, he expects them to increase their dividend 5%-10% for the next 3-4 years at least.

A very good Canadian Company. Still bearish on the gas side. Took out his positions some time ago and has recently bought back in because stock was recently put down because the spread of heavy oil vs. WTI was so great. Margins are much more attractive. Thinks you will see a lot of forecast revisions. Good time to add to it.

(A Top Pick Aug 20/12. Up 1.29%.) His thinking a year ago was that energy stocks were cheap and this one was well run with probably 8%-10% production growth over 10 years. It applies now because it really hasn’t moved so he still likes it.