MEG Energy Corp (MEG.TO)

(A Top Pick Jan 17/14. Up 8.89%.) This has some of the best oil sands properties in Canada based on quality of reservoir,. They are still in the early stages of their growth profile. Feels the market is undervaluing the long-term strategic asset that they have. They have been able to access capital through equity markets and debt.

6.5% bond maturing March 15/21. (Top Pick Aug 13/13, Up 11.00%) A growing Canadian oil and gas story. It was building up a cash pile before Cap-X got under way. He bought more when it went on sale. It is playing out with how the stock and the debt are performing.

(Top Pick Jan 17/14, Up 27.88%) Will benefit from Northern Gateway. Just entering into a rapid growth phase. There will be some significant jumps going forward in the near term, at least.

Doesn’t pay a dividend so she doesn’t own it in her portfolios but her company does. Good quality assets in the oil sands region. Operating results have been very good to date. Have done a good job in terms of market access and putting together solutions of pipe, rail and barge to get their product to market. Outlook is quite good. Weakening Cdn$ will bode well for their results for the next couple of quarters.

Looking at the global political landscape and the risks in the Middle East, etc., he thinks oil sands are undervalued by Cdn and the global investors, considering we are a safe jurisdiction and these are long life assets. Oil production is on track to double in 2014 to approximately 60,000 barrels a day.

6.5% bond maturing March 15/21. (Top Pick August 13/13, Up 6.00%) Good management team and energy reserves. Have been penalized around expansion. Sometimes they have to come to market when it is not that open. It fluctuates. Buy it when it cheapens up.

(Top Pick Aug 30/12, Down 14.01%) A high quality name. Fundamentally it is a very good company.

6.5% bond maturing March 15/21. This is located in the oil sands in Alberta. Has a significant positive growth profile over the next 2-3 years and, potential beyond that, to become a major player. Has also been embarking on a rail and barge transportation system to get some of the trapped oil out of Alberta. Just reported good numbers with strong production. The one downside is that they will have continual debt issuance because they had a big program to finance.

Superior properties, superior balance sheet, superior management, good growth trajectory. Ultimately you want to be in something that is oil levered and SAGD. Not the cheapest name on the block, but it offers you growth and exposure to oil. Oil Sands are going to grow.

Has the best growth profile, bar none. Have some of the highest quality assets. Growing at 200,000+ barrels a day of production. Potentially a takeover candidate. You want to be in oil sands.