Peyto Exploration & Develop. (PEY.TO)

Nice yield just under 5%, great balance sheet and solid management team. Cash flows have not been there. The challenge is price momentum. It is a value trap and neutral for him.

Primarily natural gas, and has tended to fluctuate with that commodity. It is one of the primary producers and has a great dividend of about 4.7%. Looking out, on a Price to Cash Flow basis, it isn’t too bad, 7X or 8X. They have always been very effective at managing their balance sheet. Good properties and good exposure. Reasonably priced. Dividend yield of 4.8%.

The whole sector has sold off all this year. Feels this one has been punished because of the overall sector selling off, as opposed to anything they may be doing. The company is really well run. They’ve done a great job in a number of different areas. They aren’t buying a lot of land, but seem to be able to continue to drill and find good opportunities on their own properties. Because of that, their development and finding costs are really low, especially compared to a lot of other companies. The company has a really strong hedging policy, and hedge about 50% of their production. If you are a longer-term investor, this is probably one of the best, well-run gas companies in Canada.

Peyto Exploration (PEY-T) or Canadian Natural Resources (CNQ-T)? Two different companies. Apples to oranges. He wouldn’t own either. This one gives you natural gas exposure in Canada. They’ve had some issues with take away capacity in pipelines. The shine has come off the story. It has traded at a significant premium, and he thinks they are going to be losing that relative to some of their peers. Prefers others.

Natural gas. Announced some production results for the 4^th quarter. A lot of oil companies tend to announce production results immediately after the end of the quarter, but without the corresponding cash flow and earnings numbers, and the financial report usually comes about a month later. Some of this company’s production numbers were a little below what analysts were looking for. That, combined with a softer natural gas market, took a toll on the stock, and it has been very much an under performer for the last 4-5 weeks. Still one of the few energy companies in Canada with a pretty decent growth profile, and trades at a pretty reasonable multiple in cash flow. Ably managed. He wouldn’t be overly concerned.

There was a downgrade by Barkley’s today. The winter is now quite mild and any tightness in the commodity on the stocks is now coming off. He would rather get these stocks on a really bad gas day.

A great company with a great management team, and a low-cost producer. It is significantly more gas weighted and he prefers something that is more oil weighted.

He likes the energy complex. This company is a leader and a low-cost producer in the Canadian Western sedimentary basin. Great assets and great management with a really rigid strategy of managing costs.

A really well-managed natural gas levered company. If you own it, he would continue to Hold.

A good company, run by good management. Pays a good dividend yield. He believes natural gas will move higher, however prefers Tourmaline (TOU-T) which is a little cheaper, and gives a little more growth. However, this doesn’t pay a dividend.

(Top Pick Oct 31/16, Down 0.37%) Natural gas prices have risen quite formidably. They are the lowest cost producer in the western Canada sedimentary basin and they have put up the highest shareholder returns since 1990.

It is important to be selective in the resource space. They enjoy the single highest rate of return over the long term. They have great assets and great management as well as operating all their own assets and own their own gas processing facilities.

(A Top Pick Sept 25/15. Up 40.51%.) A very well-run company. The lowest cost natural gas producer in Canada. They produce in excess of 100,000 barrels a day. Extremely low cost and very well-run. This is a stock that you should own.

The Best of Breed natural gas, where it has a very loyal shareholder base. Because of that, this trades at a premium multiple compared to some peers, who he thinks can grow faster.

(Market Call Minute.) Great cost structure. They deliver earnings rate of returns and focus on return of capital.