Parex Resources Inc. (PXT.TO)

People love this stock. It has cash on the balance sheet and no debt. They do 37000 boe/day. He prefers Gran Tierra, which also drills in Columbia. The stock sells at a significant premium to book value. The stock has almost doubled in the last year. Sell Parex and buy Gran Tierra on weakness.

(A Top Pick November 30/17 Up 22%) A Colombian oil play that he has held for several years. It has benefited from Brent oil prices. Production has increased and it reached another 52 week high in price. It is still cheap at six times cash flow.

This is his largest holding in the oil and gas funds. They grow through their own cash flow and netbacks are great. They price off Brent oil prices. Management has always over-delivered. They have great drilling opportunities and management is A+.

(A Top Pick March 20/17, Up 16%) General oil recovery of recent past helps, but they have a proven exploration company in Colombia and managing risk well. Not expensive. Remains one of his favourite names.

The grand daddy of Columbian oil producers. You get premium pricing, being outside of North America. It is a goto name in the International space. They will grow organically.

One of the few stocks that has been going up in the last little while. They don’t have some of the issues that Canadian operators have. She prefers GTE-T.

(A Top Pick Jan 24’16, Up 25%) They had the luxury of pricing their product in Brent. It has a big plus for them. They set a new all time high this morning. This is probably the only one in the last many, many months. He still likes it. It is his second biggest holding. A new announcement on Feb 6^th. It is matter of how big is the bump going to be.

Columbian producer. It is one of the energy stocks he managed to hold throughout the energy cycle. The valuation is reasonable and they have a big backlog of exploration. Really good net backs and a good quality management team that has really delivered. (Analysts’ target: $23.00).

This company has the benefit of selling its oil at Brent, which is trading at about a $7 premium to WTI. His hang-up has always been Colombia where there always seems to be ongoing pipeline issues with rebels, etc. Felt the risk/reward was better in North America. However, this was a heck of a performer last year, mainly due to some very strong exploration success. This is now almost caught up to its peer averages. He personally wouldn't own it, but if you have it, let it ride.

(A Top Pick Jan 24/17, Up 10%) He bought it because it has a great record of expanding reserves. It was trading at a very cheap multiple. It prices oil in Brent because it is in Columbia.

Since he last recommended it, Brent which is what they price their oil in has gone up. They have yet to come up against where the end of their fields is. This company could easily be at 50 or 60k barrels in a year or two. They have a tremendous net backs on their pricing. If they get the production out that they say they will then it is a steal. (Analysts’ target: $23.00).

A Colombia oil play. Generates free cash flow. Has no debt and has cash on the balance sheet. He really likes management and the assets. Expects to see another 20%-25% jump in their reserves. Trading at 5X cash flow. (Analysts’ price target is $22.00.)

It is one of his favourite oil names and is in his top ten. It came off over a 4 week period and has moved up. They want to get to 50k BOE per day over the next 5 years. He can sleep well at night even though it is in Columbia. It is one of the goto names in Columbia from Canada.

One of the better oil/gas companies. A solid company. Canadian-based but all their operations are basically in Colombia. Really well run and they’ve been very successful. Thinks the long-term fundamentals are good. If you are going to own an oil and gas company, this is one he would want to own.

Chart shows a downward channel from earlier this year. Expects the whole commodity complex, anything to do with commodities, to do quite well. However this one is not showing initial strength like the rest of them. There is a move from the end of August at around $12 to the current price of $14.86. If you can get this at about $15, you might be happy. This has not been good compared to some of the other names.