Painted Pony Energy (PONY.TO)

A good company in natural gas. Had a really good performance this year to date. A lot of natural gas companies have come down recently. If predictions are right for El Niña, there should be increased demand for natural gas. A good commodity to own in this environment. There will be some more volatility in the sector, so you could probably buy a little bit cheaper, perhaps 5%.

(Market Call Minute.) A good way to play a stronger natural gas price in the upcoming winter, $9-$10.

He was involved many years ago. He met with manage recently. They are more of a land grab. He likes the management team, but prefers other names. He likes the story and thinks you will do well by it.

He is bullish on Nat Gas. Management is proven. 4^th largest reserve of all publically traded companies. You had the first draw down in Nat Gas since 2006 last month. You just need a normal winter.

Really doesn’t see any strong catalyst short of a sale for this name. It is hard to see how it is going to continue to go up in a sideways oil tape. It has had an okay run of late, and you could certainly lighten up. There is nothing fundamentally wrong with it, but doesn’t see any reason why you should be there.

(Market Call Minute.) An extremely well-run company.

(Market Call Minute) Their production is going to go to about 40k barrels up from 16k.

A natural gas producer, and one of the fastest-growing ones. They have gone from producing 5,000-10,000 barrels a day, to almost 40,000 by the end of this year. Have had huge growth and have used some leverage to achieve that, but gas prices are really, really strong this summer. The natural gas market needed that demand in order to have a storage reset, and it looks like we are getting one. Because of that, this company’s leverage metrics look a lot better, and can actually keep growing from 40,000 barrels a day onwards.

Had concerns earlier this year on the logistics of incremental pipe being laid down to accommodate the growth that the company has. They have a very ambitious growth plan. This year, debt peaks out at maybe 2.8X debt to cash flow, and goes down steadily after that as incremental volumes start to be realized. Have done a fantastic job in every year of getting better and better at drilling wells in Northeast BC. A long-term Hold if you are constructive on gas.

One of the highest growth names you will find this year and into 2017. They are in the Northeast BC Montney fairway. This is a story of building facilities and filling them. Going to go from about 16,000 barrels of oil equivalent to 40,000 by year end, because the plant is going to be on stream. It is on time and relatively on budget. They will then look for the next phase, which ultimately could be 60,000-70,000 barrels by the end of next year. Well hedged for this year. Expects they will be self-sustaining as they get towards the 2^nd half of 2017. Will probably be adding a little more to his holdings.

He does not know the company. Looking at a 5 year chart he feels oil will not go much above $50. He would not play it from the long side. If you like them then you are a dip buyer close to $5.

It is a gas play. His in house analyst really likes it. It is doing well. Most are not. PPY-T has a large play where if gas prices come back they will do well. It is one of the better natural gas play in Canada.

(Market Call Minute) A challenged business, but if LNG takes off then they have a strong position in that.

The entire group is weak because of downward revisions in Nat Gas price predictions. Demand has not grown. Industry has not kept up with pipelines. Producers have a constraint from this. They are hedged at 61% for the remainder of the year.

(Market Call Minute.) A natural gas developer and producer. Stock is cheap on a Price to Book value. They are not going to be cash flowing a whole lot at these prices. However, price momentum is starting to turn in the whole sector. They are cheap enough on a BV basis and might be one to take a look at.