Kelt Exploration (KEL.TO)

(A Top Pick Dec 5/13. Down 1.26%.) Has grown its production per share by around 200% plus. Cash flow has grown by a huge amount. Stock has gone down because oil prices are down. Predominantly a natural gas producer. Very, very well run. Producing about 15,000 barrels per day and is going to grow its production next year. Has announced that it is going to reduce its spending budget a little bit next year, but not substantially. Balance sheet is in excellent shape. At these prices, it represents excellent value.

Very well-run. Highly regarded management team in the investment community by virtue of the people that invested in their predecessor company. That company had compound annual growth in production of 27% over about 11 years. This management team has a demonstrated ability to assemble high-quality assets and make shareholders money. Hasn't bought into this company because the valuation is too rich for him.

Went into it from TOU-T because it was a smaller market cap. More balanced portfolio, low cost operator and great efficiency.

Top tier management team. Very strong production and cash flow growth back loaded to the end of the year.

Very strong management team. Reporting earnings tomorrow and will probably be 11,000 BOE’s a day exit rate for the 2^nd quarter. A year from now, they should exit at about 18,500 BOE’s a day and that’s with only 60% success of their drilling program, which is really conservative. Very conservative management team and they own big positions in the company. Debt-free. Have great lands.

Management owns 20% of this company. There is some upside in reserves and they will probably beat production numbers. A good entry point.

Likes their style. Strong balance sheet. Good exploration and good cash flow. (See Top Picks.)

Spectacular team. Has around 11,000 BOE’s a day. About 2/3 gas. This company sets a high bar in terms of how to do things right. They are very good in assembling their asset base.

Likes this. His “Reduce” support line is $14.60 and the “Sell” support line is at about $13. Doesn’t know what the news was, but it was up 7% on 17 June. Consolidating a bit right now. Volume is tapering off a little. This stock is in new territory, and if they continue staying up here and get above $15.60, it has a potential to take off again.

Mostly natural gas, but has a very fast growing oil component. Just recently went over the $1 billion market cap. About 20% of the company is owned by directors. Recent Montney oil discoveries and private company acquisition are catalysts for the company. The types of growth they have are breathtaking. Have found new ways of driving down costs. A new acquisition just increased their production from 10,000 to 13,000 barrels of oil equivalent per day.

(His 3 Top Picks are all based on continuing strength in natural gas prices.) A management team where he has made a lot of money on another operation that was acquired by Exxon. Has a lot of respect for management. Very prudent in the way they manage their inventory of projects. Mostly unhedged so in the last month or so, they were getting over $10 for their gas on a daily basis. Expects to see great cash flow out of this company. S&P comes out with their Index inclusion tomorrow and he thinks they will make the test and be included in the TSX Composite, which will bring in a lot of new investors into this company.

Good management team. Likes what they are doing and their focus. Valuation is always a question but over the longer term, it should continue to be a core hold.

Very, very rapidly growing company. Exceptionally strong management team. Sharing space with Exxon. Have been accumulating a very large land position. If you want to really make money, you invest in oil/gas companies that are growing production per share and this company has a great track record of doing that. Pristine balance sheet. Trading at a very reasonable valuation.

Hoping that this is the next Raging River (RRX-T).(See Past Picks.) Production has gone from 4500 barrels per day to just under 10,000 barrels per day and thinks they will be growing production at a pretty rapid rate. Pristine balance sheet. Not paying a dividend but is growing internally at around 25% production growth per annum per share. Expects to see this at $12 in 12 months.

Everybody is a big fan of this management team as well as herself. She doesn't own though. The company is about 80-85% gas. She is waiting for a better valuation.