Enerplus Corp (ERF.TO)

(A Top Pick June 11/2018, Up 1 %) Canadian company, but about 80% of production is in US, so they get world price for oil. The Canadian listing gives them the dividend tax credit and it’s well managed.

They're getting 82% of their production from the U.S., so they're getting world prices in American dollars, even though they're a Canadian company. They're growing. (Analysts' price target: $19.23)

It is a solid long for him. It was a Top Pick not too long ago. Recent price momentum is fine as is price valuation. They beat on the recent quarter.

He’s not really excited about energy, and gets a feeling we are just being manipulated. He likes big cap energy in the US. This closed at $13.29, and his model price is $17.30, a 30% upside. It’s one Canadian stock that actually has a distribution that is actually lower than its income. Thinks it goes higher, but there is so much opportunity in the US, that it’s hard for him to recommend this.

(Market Call Minute.) A good, solid oil and gas company with good exposure in the right areas. He would call this a soft Buy.

It is one of the few that has decent price momentum not just in the energy space. You can hold and not go broke while you wait. It has good ROEs and 6.7 times cash flow. If we get an oil price rebound this stock will lag it somewhat. (Analysts’ target: $14.75).

One of a handful of stocks in the sector that has held up reasonably well. Good valuation, trading at 6X EBITDA. They had a Beat in the last quarter. Decent balance sheet. Dividend yield of 1.1% which he is happy with until they start generating cash again.

You can get a better exit than right now. It depends on oil prices. It is well positioned relative to the group. It is cheaper. Its balance sheet is really good. If you wanted to look to an oil name this would be a really good one even if not the best.

Recently sold a portion of his holdings, partially due to their exposure to natural gas. The company has done things to improve their balance sheet by selling off some assets. A big part of their production is in the US. Some of the companies that have exposure on both sides of the border, have not been hurt as bad by the fear of a border tax. Until the gas situation gets sorted out, this is not going to have a huge move. Dividend yield of 1%.

It has done very, very well. They have sold non-core assets. They repaired their balance sheet. He was suggesting to take profits about a week ago. They will be impacted by lower oil prices in the next couple of quarters.

This did very, very well from the bottom. When we had the decline in the 4^th quarter of last year, the stock went from $8 down to $2.62 in Jan-Feb. It had a nice bounce to $10. They are producing about 94,000 BOEs a day, and about half of that is oil. This is a big player in the US. Operating costs are excellent at $7.10. Transportation costs at $2.87 are a bit high. They had good hedge gains in the 1^st half of this year, but their hedge book is a little lean now which is a bit of a problem. BV of $2.90. Paid down a lot of debt this year. The balance sheet is in good shape. What he doesn’t like is that, because of the assets in the US, they have taken impairments and every quarter that number is a moving target. If oil drops as he expects, there could be more impairments. Thinks the stock will back off to below $6, where it would be a Buy.

(A Top Pick July 11/16. Up 17.33%.) Still thinks this is undervalued. Should be trading in the low double digits at about $12-$13. They have producing assets in Canada, and the Bakken and Marsalis in the US. Thinks this should trade into the $13-$15 range.

Very undervalued, especially now that they have restructured the portfolio and raised some cash. The balance sheet has been completely repaired. They have an asset in the Marcellus that everybody overlooks, because nobody focuses on gas any more. Dividend yield of 1.46%.

Just raised some capital to help stabilize the balance sheet, which was a good idea. Have some great Bakken assets in North Dakota and are doing very well with their drilling. Sees a lot of upside there. The Marcellus assets are not doing as well because of the differential in some of the prices, and are getting the netbacks.

The balance sheet had $1.2 billion of debt versus $900 million of equity in December 2015. Just sold about $278 million of assets, so they will be about $1 billion in debt. BV is still cheap at $4.34. Taking profits is a great idea. They are doing very well in the US, producing 106,000 barrels a day, up from 2011 when they were 75,000. Their balance sheet is now a lot cleaner. Thinks this is a survivor in this group. On the next decline it would be a Buy.