Cenovus Energy (CVE.TO)

Just reported great earnings and beat estimates. In the SAGD project in Alberta and are ahead of schedule on getting the material out of the ground. The attractive part is their joint venture they have in the US for 2 refineries, so are basically hedged.

He is not that bullish on oil and you would have to be bullish on oil before owning this. He would be cautious.

This is the oil sands half of Encana (ECA-T). Prime quality. 2.5% dividend.

Came out with great earnings in the 2^nd quarter. Stock looks really good here. You have to question where oil is going. Anything above $114 a barrel may slow down economic recovery but where we are right now, he likes the oil stocks right here. This is a solid company. Increased cash flow along with production increases.

They are a big player and move with the sector. XEG made its high for the year and made a correction and now we are in the middle of the year. We are in a range with CVE until something happens in Iran. Take some money off the table until 52 week lows. Traders should wait for the dips.

Cyclical stocks are for Canada. With rates as low as they are we will see these stocks come back into favour. Has fallen with the price of oil and at some point they have to go North of $100. Growth coming out of oil sands positions them to raise dividends for many years to come.

Well-run. Operating cash flow last quarter was way ahead of expectations. Have proven over the years to be very disciplined in spending. Will be spending a lot more on Telephone Lake. In a good position to be supplying oil to the pipeline that will inevitably be built.

2.7% dividend. With differential between heavy oil and WTI being volatile, this one has the refining business, which offsets it. Is trading below pier averages. Would be comfortable adding today, or staggering over next little while.

This is his favourite in the integrated space. Built for growth as far out as 2017. Likes its diversified nature. Its refining assets help to offset some of the volatility. Have been delivering on their promises. Bringing cash costs and volumes in lower-than-expected. Possible dividend increases. Expecting a 15% upside in 12 months.

Lowest cost oil producer with a low payout ratio. Has a little bit of gas, but it is low-cost, wet gas. Good growth profile of 7%-8% production growth for probably 7-8 years.

(Top Pick June 29/12, Down 3.19%) Market fails to realize they have refineries in Chicago and Texas that can capture the price differential. Would still recommend this one.