Cenovus Energy (CVE.TO)

Very well run oil sand company. Have some of the most economic oil sand deposits in Canada with the breakeven price of about $40-$45. Trades at a premium because it is viewed as a more quality name. Can’t see any real catalysts.

(A Top Pick Jan 3/13. Down 7.14%.) Still one of his highest conviction names. Would still recommend this. Great, deep resource base. Raised their dividend 2 years in a row, 10% each time. Good long-term holding.

(Top Pick Apr 10/12, Down 14.03%) Over time is one of the better quality energy companies out there, but energy is weak right now because global growth is weak. There is no reason to be there right now. Wait until industrial economy is picking up in the US and China.

Has some Nat Gas production which is a hedge for the production costs of the oil sands. He has shied away from oil sands producers because of execution on projects but CVE has stood out head and shoulders above their pier group. He only owns CPG-T

Underowned and underliked by the big money out there.

Low cost producer. Has refining also. Most sensible, conservative way he can own oil in Western Canada. It is 3% position for him.

(A Top Pick April 4/12. Down 9.91%.) Still thinks it’s a great name to own. Has been hampered by concerns over the oil differentials. Had very strong results in the 1^st quarter of their refinery.

The negative with this is the sector it is in but it is one of the top ranked stocks on Bay Street. Very strong dividend yield. Down at these levels, you could start nibbling away. US and global investors have a new, very strong interest in US energy, so money is flowing that way.

When we are going through such a prolonged selloff in the energy sector, the companies that come back first are the very large, well-capitalized, very liquid companies that are integrated i.e., with upstream and downstream operations. On valuation, you are probably better off with Suncor (SU-T). (See Top Picks.)

Great company, incredibly well run, one of the lowest cost producers in the patch. Rail is going to transport a lot more oil. Great management. You can make a reasonable amount of money on it.

(A Top Pick April 10/12. Down 10.87%.) One of the more defensive ways to play the commodity cycle and had expected good long-term predictable growth in terms of production, which he still thinks is the case. Because commodities are struggling, he sold his holdings.

All of the major oil sands stocks have had headwinds over the last year. Keystone has been on the front page. This has been a negative year for them. Have some of the best oil/steam ratios and they are still a good go-to name. Almost 3.5%. These are the days when it represents good value.

Trading at a pretty low level. The company itself is doing completely fine, showing growth in production at a relatively low cost but right now, no one is interested. The oil differential has started to contract so their numbers are probably going to surprise people to the upside. If we could get a TransCanada announcement, it would help the psychology and that’s when the stocks would start to run.

Whether or not XL goes through, the oil sands are going to be developed and CVE is well positioned. Increased reserves significantly recently. Valuation is fair but stock could see a fair amount of upside if the energy sector recovers.

If the Keystone pipeline gets built, which company benefits the most, Canadian Natural Resources (CNQ-T) or Cenovus (CVE-T)? If the Keystone is approved, a lot of companies will benefit including these 2. His 2 favourites would be CNQ and Suncor (SU-T).