EOG Resources Inc (EOG)

Energy is facing its toughest times. If you are bottom feeding, he might still avoid this sector. The companies that will get through the best will be the ones with their costs under control. CPG is a lower cost producer, but he would prefer someone like EOG -- the lowest cost shale producer. He thinks CPG may require more equity or debt to grow going forward.

His company has this with a $130 US target on it and $145 two years out. He has this as a sector perform, even though it is high volatility because of the oil exposure. Quite a well diversified company with a lot of assets offshore. If you are looking for an international oil play, this is definitely a good choice.

(A Top Pick Nov 27/13. Up 17.98%.) Had a 2 for 1 stock split. Loves this one. It's in the Eagle Ford shale in Texas, a prime area. Saves money on transportation costs because the Gulf is right there.

(Top Pick Aug 19/13, 41.63%) Have some of the best acreage in their plays, growing production by 20% per year. He thinks they will disappoint in the next year.

He is taking all the oil nonsense and eliminating it. The US will be world’s top producer in 2015 because of the Eagleford shale area in Texas. It is twice the size of the Bakken field and a lot closer to the surface so it will cost about 40% less to drill. Also, very close to the Gulf, which will save about $40 a barrel because there will be less transportation costs. Will also have Brent pricing. Price to cash flow is 6.9. Yield of 0.45%.

This was on the cutting edge of understanding shale gas but then saw the glut that was coming and transferred their expertise to shale oil. That allowed them to get the sweet spot in the 2 major plays that were responsible for the US oil growth, the Bakken and the Eagleford. Have a 12 year inventory. Trading very cheaply at about 5.7 times.