Brendan Kyne
Duvernay Oil Corp
DDV-T
TOP PICK
Dec 17, 2007
A sector that has been a disaster for a while. Stocks are starting to trade at NAV or below. You get a little over $5 in cash flow in 08. Rough weather could help natural gas.
Have a very substantial position in the Montney play in British Columbia, which has better royalties in the gas production than in Alberta. Good management and good assets.
2 key things going for them. 1) Very strong pricing in the commodity and he feels natural gas is going a lot higher. 2) Good production growth. Have exposure to the Montney play in Alberta/B.C. Could be a takeover.
Massive gas company. Acreage is among the absolute top deciles in gassy plays in the Montney region. An expensive multiple stock but the growth profile is an extremely impressive.