Kelt Exploration (KEL.TO)

(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.

(Market Call Minute.) Lots of debt, but good upside to commodity prices and good management.

(A Top Pick April 21/15. Down 52.34%.) One of the better run liquids rich oil/gas companies in Canada. He recently participated in their convertible debenture issue which pays 5%. Have grown their production very well and has a very low cost base. Excellent management team and a huge resource, that a larger entity will find attractive as some point. This is an excellent Buy right now because there are some guys hedging, buying convertibles and shorting the stock. Incredibly cheap.

A hybrid oil/gas company with a really great drilling team. The problem is that it is not a pure play. He likes his oil company to be an oil company, and his gas company to be a gas company. He got stopped out of his holdings. It probably does really well in this market, that he prefers bigger companies that have a lot more transparency.

(Market Call Minute.) Great assets, but has been challenged by rising debt. Also, valuation is quite high relative to its peers. A lot of companies look to Short this when prices are going down. Likes management.

One of the best management teams out there. Amassed very, very large land positions and have been drilling outstanding wells. The balance sheet is in good shape. US investors have been shorting this, and the short position is about 10 million shares, which is a future buying power. Struggling with a commodity price which is unsustainable.

Thinks oil is close to a bottom and you can start picking your favourites out, but he would not be buying oil/gas companies right now. We still have an extended period of time, maybe the rest of the year, before we have a sustained movement up. This is not a bad company and has a decent track record, but these companies are not making money.

An excellent company with quality management. She has stayed away because they have a lot of exposure to the natural gas side which is not always hedged. Valuation has been too rich for her. Also, had some issues with infrastructure this quarter. If you want exposure, this is a great way to play it.

He likes this firm. When management sold Celtic (CLT-T) to Exxon (XOM-N), they took the same team and reinvested a lot of their own money and created this company. Nothing has changed with the way they have been operating and structured themselves. Have built up 1100 sections of land, and in a very short space of time have a strong growth profile that is very efficient. Operating costs per BOE has had a nice drop.

(Market Call Minute) When he goes back in it will be at the top of his list.

They have the respect that many companies can’t get in the market. They refocused into some big play areas. Their reputation is stellar. They were not beaten up like everyone else was. The balance sheet is relatively strong.

It is a small cap, a small player. You have to go by the story, not tech analysis. It appears to have made a bottom and began to rally. It had a big day today. It will probably work out fine.

(Top Pick Nov 19/14, Down 32.02%) Took over RTK-T. He bought more recently. They are still exceptionally well managed. Strong balance sheet. They bought RTK-T for a song. This stock will be a huge winner when energy prices recover.

One of the largest positions in his funds, and he hasn’t sold a single share. It has all the right attributes to be investing in the energy business, because you just don’t know what is going to happen to commodities within a one year period. Strong, strong management team. Low cost resource with a lot of it. Also has a very strong balance sheet. Have been able to take advantage of this weakness to add to its landholdings at very, very attractive metrics. Debt to cash flow ratio is very compelling. Has been able to grow production substantially over the last number of years. It will grow production in a prudent manner.