Precision Drilling (PD.TO)

For his bullish natural gas outlook. 23% free cashflow yield, slightly more bullish next year at 28%. Pledged to return 35% of that to shareholders. He targets 116% upside from here. No dividend.

Large contract drilling company in Canada & USA. Very risky name that is volatile. Directly tied to outcome of energy business. Day rates (salary expenses) can swing wildly. Very inexpensive stock, but hard to determine outcome of business (profits etc.)

He prefers drilling to pumping because the former has far fewer competitors and pricing has been firm amid weak nat gas prices. The Canadian market is much stronger than the U.S. It boasts 31% free cash flow yield in 2025, and they will return 30-40% of that. Will hit their debt targets. he owns nearly 10% of the company. The outlook for LNG is positive. He sees 137% upside.

Ridiculously cheap. Investors don't realize how much debt they have paid down. Much upside ahead.  26% free cash flow yield then 30% this and next year. They will return 30-40% of that cash flow to investors, but will tell them it should be 50%. It trades at a discount to US peers. has 100% upside.

At an extremely attractive level. Focused on maximizing free cashflow and de-leveraging. Anticipates it meeting an inflection point of moving from using money to de-lever to using it to reward shareholders, by Q2 of next year.

A non-depleting business, low-maintenance assets. Backdrop of LNG Canada, replenishing inventory, good macro headwinds. His numbers show 34% free cashflow yield next year, 36% the year after. His target is $177. No dividend.

Energy is very cyclical. This will lose money when the economy is on the downturn. That happened a few years ago. Unless you are optimistic about oil prices, don't build a position.

In drilling services like SLB and Haliburton - a cyclical business. Buy only when out of favour.