Pine Cliff Energy (PNE.TO)

Great company. Thinks they have the balance sheet to do significant acquisitions going forward. Have been very disciplined at what they do. These are the same people that started Bonterra (BNE-T), which has probably had one of the best long-term returns of any stock on the TSX. He thinks this company is doing the same thing. Low production costs and they are buying assets with low decline rates and they don't have much debt. With commodity prices being very cheap here, they probably can step in and buy some natural gas assets, which have more of an oil bent to them, and get them at discount prices. Thinks it goes significantly higher.

Executing a kind of interesting business strategy that he doesn't know of anybody else doing. This is very dry gas focused. You have to believe in gas prices if you are going to own this one. They buy assets that nobody else is chasing. If he got more constructive on gas, this is one he would bring into the portfolio.

They executed the plan flawlessly. The declining gas price challenges them. Thinks it is pretty neat. Prefers TOU because it is a bigger company. If you are patient with PNE-X in a low gas market it seems they have a strategy for taking advantage of the low gas price.

A natural gas play that was a spin out from Bonterra (BNE-T) which has one of the best 10 year track records in creating value on the TSX. This company is following their example. He has added more to his holdings. Probably a multiyear story where they add acquisitions and continue to grow their production.

They can still have some element of free cash flow. He has no idea if this will be a cold winter. He prefers oil.

Gassy asset. Management from Bonterra. Lots of gas assets for sale. 90% natural gas. Their assets are very low decline rate. Likes their acquisition theme. Will be a bellwether gas stock to own over the next 12 months.

Nat Gas. Has been a top pick. Great management team. They did some nice acquisitions.

This company buys assets that are out of favour. Made a number of inexpensive acquisitions in just the last little while and they have been cash flow positive. Their producing properties have a very low decline rate with strong cash flow. Did two big acquisitions in the last 3 months and their pipeline is busier than ever. Strong balance sheet with a strong cash flow to pay down debt.

Has had a great run. Announced 2 acquisitions in the last few weeks alone. He would want to see it pull back a little because you are basically paying all-time highs for it now. Phenomenal management team that keeps making acquisitions, and he expects to see more.

Dry natural gas. Sold his holdings last week, based on their announcement that they had purchased assets for $100 million. Thinks people were getting agitated that management was taking so long to make an acquisition. Feels the biggest risk is equity financing coming in. The manager is very conservative. Given that they have a debt to cash flow of around 1.5-1.6 times, he would think the manager would be uncomfortable at that level. If you own and are mildly bullish on natural gas, they have a fairly low cost structure, so hold onto it.

Mixture of value and growth at a reasonable price. Getting hit pretty hard today so you are getting a good deal. Dry gas producer – less costly to drill. They can do some nice acquisitions over the next year.

Good company. Balance sheet is loaded so they can go make an acquisition such as a non-core LNG access of a much larger company.

No debt, cash flow positive. Predominantly natural gas. If you want to play natural gas, this is one of the better plays. He recently sold his holdings because he thinks the gas play is getting closer towards the end.

If you are looking for natural gas with a quality management team and a company that is unhedged, (you are tied to spot prices both positive and negative), this is a good company. Very highly correlated to gas prices. Good entry point.

This is one of the best ways to invest in a pure play in Gas. It is one of his larger holdings in the portfolio. Thinks this is a counter cyclical company. They are a very shrewd acquirer of businesses. Would buy more on a pullback.