Kelt Exploration (KEL.TO)

It would not be affected if the trans-mountain pipeline was stopped as they produce more condensates, which go to the oil sands. They do, however, do some fracking, which could get stopped by government intervention. They put out an okay quarter last night.

An exceptionally strong management team. A good solid balance sheet and a low-cost resource. They own a lot of their infrastructure and have access to many different outputs should one break down. Management team has shifted from being an exploration company to more of a development program. They’ve proven up reserves which are very, very substantial, and well delineated. Their natural gas is very liquids rich, and the wells they are drilling have been very extensive. He thinks this company is easily a double in a more normal energy price environment. Really strong management team which owns about 20% of the company.

A really dynamic group. You will get a return when they discover a lot of resource. It is going to be harder to see with their strategy, but one day you will wake up and the company will have found a huge amount of resource, and it will just get sold to somebody. This is one that you just have to sit on and let them do their thing.

Liquids rich gas. A well-regarded management team. Impeccable track record of execution. They focused on acquiring their 640,000 acres through the downturn. They weren’t focused on costs and efficiencies yet. Thinks 2017 will be a critical year where they now refocus their attention on cost efficiencies and show people the prospectivity of the land. NAV is quite high and people were wondering when they were going to grow into that, and he thinks 2017 is the start of that. (Analysts’ price target is $8.75.)

He likes this company. Good balance sheet and good management. They’ve improved their balance sheet over the past little while with a couple of asset sales as their areas of focus. The price of gas has come down recently. Solid, long term management team.

This has done a fantastic job of growing production. They recently acquired about 700 sections of land in the Montney area. Fantastic management team. A super strong balance sheet. Growing well within its cash flow now. They have one of the largest land bases in Alberta and Northeast British Columbia. (Analysts’ price target is $8.72.)

This was founded by the former management team of Celtic Energy, that was sold a number of years ago, for a nice profit for all the investors. They have quite a nice position in the Montney. He likes this name. On a go forward basis, this has a ton of upside in their drill program.

He likes management. If looking for a levered growth play for natural gas, they have been quietly accumulating land during this off cycle when everything is out of favour. Once the industry comes back, they will be very well positioned to take advantage of that. If you are okay with just growth, he likes this.

Its seasonal period is from September into mid December, the heating season. There was an uptick and the it fell back down again. We are in the season period but is very volatile. This is a good way to play it and is probably a good place to buy it. It is a good Natural Gas play.

(A Top Pick July 13/15. Down 22.95%.) One of the top “go to” stocks in the oil/gas business. It has had a tough time because of the commodity, but they have come out of this downturn larger, stronger and better financed than it was 2 years ago. This has a very good growth profile and has enormous resources. It is right in the sweet spot of where everybody wants to be, in the liquids rich natural gas. A low-cost operator and has one of the largest exposures to land out there. For the last 3-years they have been accumulating a massive land package and growing their production. They are now in the development stage where you are going to start to see dramatic production growth.

People are warming up to nat gas. Oil rig counts are down and gas is a byproduct of oil exploration. Last week’s storage of nat gas was the lowest in 10 years. It is a hot summer. They are coming out with two exploration well results when they report next week. You have a management team that holds a lot of stock. Their debt is a little higher than many peers, but he does not view it as a problem.

This is the management team from Celtic which sold their company to Exxon Mobile (XOM-N). They are doing the strategy again. Have managed to assemble a land base and opportunity set, that is even larger than what Celtic was. They’ve always had a very good cost of capital and good paper to do acquisitions, and has always shown good tenacity in assembling land. Fairly gas levered, and a little more balance sheet debt than what he is comfortable with. An A+ management team.

(A Top Pick June 9/15. Down 45.21%.) He still likes this very much. They raised money to shore up the balance sheet. Trading at an incredible decent valuation if you don’t believe oil is going to stay at $50 forever. Feels supply dynamics are very, very positive for energy. Strong, strong management team.

(A Top Pick March 3/15. Down 41.85%.) This is a tale of the energy sector in general. Still one of the premier management teams out there and can raise capital whenever they need to, and they own a significant portion of the company. Thinks management is great at creating NAV. They are opportunistic in buying land and small tuck in acquisitions during this downtrend.

(Market Call Minute.) Basically a land bank now, so he thinks it goes quiet for the next couple of quarters, and then the management team is going to come out and tell you what they have been buying. A Buy in the high $3s.