Kelt Exploration (KEL.TO)

(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.

Really likes this company. One of the more successful management teams out there. Had owned this going into the selloff, but once the stock hit a certain price and the commodity was at a new level, he sold it. On his list of companies that are going to make it through and do well 3 years from now. Costs are slightly too high for him right now.

(Top Pick Jun 25/14, Down 50.72%) He still likes the company. He likes what they are doing. The balance sheet is in good shape. They are making good accretive acquisitions. They have become more successful.

(A Top Pick Aug 11/14. Down 33.97%.) This remains one of the best financed companies. It has all the attributes that he looks for including good resources, low costs and good management teams. Have bought a lot of assets in the last year for very, very little money. The wells they are drilling right now are huge, booming liquids rich oil wells. Decline rates are quite good. When oil prices go back to $80 or so, this will be a $20 stock.

Exceptionally strong management team which has built and sold companies to larger companies in the past. Their production is just shy of 20,000 barrels a day. Have one of the largest land positions in BC and Alberta in the Montney, the sweet spot, where all the LNG players are operating. They are surrounded by all the majors and have major land positions. A perfect target for a Shell (SHC-T) or an Exxon (XOM-N) to acquire. Very, very strong balance sheet and a very low cost operator.

Absolute brilliant execution on the operating front, but this is a tight market. The team demonstrated their abilities in the past. You can take comfort in the quality of management in this organization.