Delphi Energy Corp. (DEE.TO)

Hasn’t owned this, but understands the appeal of the stock. They have some pretty good attributes. Shed some of their Montney assets, and refocused the company around some very prolific liquids rich Montney assets. He is hearing some test rates of 3000 barrels a day or more on some of these wells. They’ve also locked in some capacity that scales up over time, in terms of a “take or pay” commitment with Alliance. Coupled with the high debt load, it’s his feeling the company was trading a pretty fine line.

(A Top Pick Aug 7/14. Down 85.15%.) He has been massacred in this. He continues to Buy the stock. High quality management. This is definitely going to be a survivor. His company will finance them if they need it.

(Top Pick Aug. 7/14, Down 78.27%) He thinks it is one of the better asset packages in the Canadian sedimentary basin. He would buy into this area in the first or second quarter of next year.

(A Top Pick Aug 29/14. Down 76.69%.) His purpose in recommending this was that it was basically a manufacturing play and they knew exactly what they had. Sold his holdings about 3 months ago.

(A Top Pick June 10/14. Down 63.76%.) Still holds a tag end of this. These are competent operators but the challenge is the commodity price.

(Market Call Minute.) This is like a lot of the energy companies and is quietly coming back.

(Market Call Minute.) One of his top holdings. Has a little more growth bent to it. Really likes the story.

Predominantly Nat gas. They were drilling wells that were better than people thought. There could be a potential new asset value that the street is not recognizing. He is warming up to this.

A Montney producer in Alberta. Did about 12,000+ barrels a day in the 4^th quarter with a $.40 annual run rate. Thinks the company is going to do about 11,500 BOE’s a day, a little bit less then the 4^th quarter, but up from 10,500 for all of the average for 2014. Expects they will do about $.40 in cash flow. They have the ability to accelerate their growth program, but are being careful on their balance sheet. It has a BV of around $1.48 and about $137 million of debt, so right now cash flow might be as low as $40-$45 million by the company’s estimate. His estimate is $60 million. If you can see this stock at $1.25 or less in the next 3 months, it will be a great Buy. He wouldn’t buy this for the next 3 months.

Delphi (DEE-T) OR Spartan (SPE-T)? He would be switching out of this one and doubling down on Spartan. Some of their Montney assets at Big Stone and Hythe are amazing assets. His problem with the company is that they have always carried a considerably more financial leverage than he was comfortable with. They have now struck an agreement with Alliance to deliver gas, so they have some commitments ahead of them that they have to meet. With a higher amount of debt on the balance sheet, they are walking a fine line.

(Top Pick Jun. 10/14, Down 68.78%) He ended up with a small holding. They are a great operator but their ability to continue to drill has been impacted by the price of oil.

(Top Pick Dec 4/13, Down 18.90%) Everyone is slowing their drilling. You don’t want CEOs spending money on projects that waste shareholder’s money.

(A Top Pick March 18/14. Down 50.74%.) This was just a bad call. He thought natural gas would be going higher. Thinks the bottom is in on oil/gas and he has actually been adding in the last little while.

Being impacted by the declining price in oil. They basically use horizontal fracing, but are now also using slick water fracing. With this, the payback is less then a year and had expected to be able to be self-sufficient, with regards to free cash flow, by this time next year. It is going to be about another year before you load up on oil stocks in general, and particularly on this one.

This has absolutely gotten hammered. In some of these juniors, the tax loss selling has ended now. In the month of January alone, this thing could bounce back to $2 really quickly.