Michael SprungPengrowth EnergyPGF.TODON'T BUYNov 21, 2012

They have done a Herculean job to try to turn things around. Still very indebted.

They are trapped by their hedges at this time. They come off next year and that should help. He is happy to hold it. Next year we could see better results. He would not buy during tax loss selling.

Although he is an oil bull, selling assets to clean up the balance sheet has limited the ability to improve financially despite the rise in oil prices. There are better companies to choose from.

It is a high risk opportunity. A major investor just bought more. They have a new CEO. They are in a better space and debt is down. (Analysts’ target: $1.01).

The stock has bounced because of the higher oil price. It has sold assets to bring down debt, but debt is $600 million compared to an equity base of $1 billion, so it is still a bit high. At this point, they don’t have any key assets for sale. Their low production is 19,000 boe/day, which is this quarter. They will bring on more wells to bring production to 23,000 boe/day by the end of the year. Cash flow will be about $0.20 per year. His target for this year is $2 and $4.50 for the next 3-to-5 years. The company has a new CEO, with relevant (thermal oil) experience.

(A Top Pick April 7/17 Down 43%). He never pulled the trigger on this as he was waiting to buy on weakness. He thinks it will fall further, but would buy it under $0.80. The company has paid down debt and sees growth through thermal oil. Be patient.

(A Top Pick Jan 9/17, Down 53.22%) He still has not pulled the trigger on it. Under $0.75 it makes more sense. They repaired their balance sheet. They sold their non-core assets. He thinks we will see weakness into Q2’2018. He likes the management team.

He is underwater with this. He likes to think it is going to turn, and he’s willing to hold on. They paid down an awful lot of debt. It seems like a good speculative play, but he isn’t willing to put more money into it.