Long Run Exploration (LRE.TO)

Have been having good success through the drill bit, which is not been recognized by the market. Trading at 4X cash flow with a fairly dependable yield. As they demonstrate the capital efficiencies and the viability of their dividend, he is hoping people will get more comfortable with this. Good name.

(A Top Pick Aug 9/13. Up 14.66%.) Very attractive assets with low decline rate and good capital efficiencies. Each time they go through their quarterly reports and show what they are capable of, he feels it will be more sustainable and close the discount that it trades at compared to its dividend paying peers.

Great assets, good management and looks like they are turning around. Why are they becoming a dividend player? Sometimes companies have to do what the market is telling them and the market is telling a lot of oil/gas companies that they will not invest in them unless they have dividends. This increases the amount of capital available for them. This is still a strong enough asset base that it is still cheap enough that she would still be buying at these levels. Payout ratio is on the lower end compared to a lot of the legacy former royalty trusts. She is comfortable with the payout ratio. She can see it at $7 over the next couple of years.

Likes dividend plus growth assets. 25,000 bpd producer. Various Western Canada locations. Dividend 7.7% yield, just announced and under 100% payout. Have streamlined their spend to accommodate the dividend model.

(A Top Pick Dec 5/12. Up 21.93%.) Recently announced that they are going to a dividend model. This means they may grow. 2%-3% in volume but are not spending all of the cash flow that is coming in. Next year they are probably going to have about $240 million of cash flow and spend $200 million and the dividend will be about 7%. He has a target $6.40. Will probably be doing 25,000-26,000 BOEs a day of oil and natural gas. 54% of that is oil and liquids. The mix is pretty good. They are in the Montne. If you see this in the low $5’s again, it will be a fabulous buy.

Have purchased the old Galleon assets and have been doing a great job in the Montney area. Have a very large land package and also bought some Viking assets. Have been executing very well. The Montney position has very high liquid content. Likes the story. With the Galleon assets they own a lot of natural gas assets.

Have 2 key formations they are focusing on to build their company’s growth, Viking in Saskatchewan and Montne. Those 2 allow very good capital efficiencies. Company is trading at a big discount. Very low debt to cash flow. Has great growth. Sees 25% upside from here.

Asset base is in the right place. Not too much money on a per-well basis to develop. 25k BOEs per day currently. Loves the story.

(Top Pick Dec 5/12, Up 3.10%) Trades very cheaply. Likes the mix. They are moving more and more towards liquids and will be at 52% this year. Thinks the stock is very, very cheap and management has really refocused the company. They have a dominant position. This company could be a target for acquisition by a larger entity.

Self-financed. Oust-spending cash flow this year but they are coming around. Hopes he would be a shareholder in the near future.

Starting to execute finally. Has gone through some name changes. It is all behind them now. He has been picking away at it. Can get to $6 but it is not the right environment for it right now.

Large land base. Likes it. Have been exploiting oil play with top decile economics with Gas prospects. He sold out of it when things were looking a lot weaker.

Looked at this one a little. Actually a mash up of a few companies such as Westfire, Orian, Galleon. Was never particularly enthusiastic about any of the companies that went into this combined entity. Going through all the numbers, he can’t get to an appealing free cash flow profile.

Really likes this one. Management has done a great job. Have taken in some acquisitions. Doing about 23,000 BOE’s a day at the end of 2012, about half and half liquids and natural gas. Lots of growth in their natural gas assets once prices recover. Trading at a big discount to book value and NAV. Great by in the low $4’s. His target is $6.

Not necessarily bullish on natural gas. Still thinks there is a big supply issue but feels this is the dark horse. Some transactions recently took place where production was sold in areas where they have production. When he looks at this, he gets a value that is almost double.