Spartan Energy Corp (SPE.TO)

Sell and go into which company? This is a very effective strategy of monetizing losing positions and trying to get the same exposure. An alternative would be Torque (TOG-T).

He likes the company. He expects 22k BOE per day and 24k next year. It is trading below book value. They have good parameters on a value basis. The management is very well received. It could be a double in the next year or could go down before the end of the year.

They did a share consolidation, and when they do that, the stock goes up. This has been pummelled in recent months because of 1) fund liquidation and 2) the exodus out of Canada. They should have pretty good growth this year with about a 20% growth and 14% per share growth next year. They have high economic wells, but he just doesn’t know if the market is there for Canadian companies. Prefers other names.

They amassed about 12 years worth of inventory that is profitable at $50 oil. They are growing with half the debt of their peers.

A solid Junior to intermediate oil producer. The energy sector took quite a beating in the 1^st half. Feels energy is probably in a bottoming process. This is one of the companies that has kept themselves in good shape from a balance sheet perspective. A relatively low cost operation. Good properties in southern Saskatchewan.

This had a reverse split. When stocks go too low, they tend to lose institutional interests. This stock is still in the downturn. There has been a recent pick up in the oil market, but this stock has not shown it. Until this starts to show relative strength to other similar energy companies, he would stay away.

In Q1 they did 21,455 BOE’s a day. This is the 4^th company this team has led. They build these from nothing to 3000, 4000, 5000 BOE’s a day and then sell. Just did an acquisition late last year, 65,000, from Arc Resources (ARX-T), which made them a very focused player in Saskatchewan. They are 93% oil. Insiders are very large shareholders, owning over 10% of the company. A table pounding buy under $4.

Trading at an incredibly good valuation. It is now 3X the size it was 3 years ago. Management has done an outstanding job. They did a large acquisition early this year which he thinks kind of exhausted and sapped up a lot of demand. There have been all kinds of rumours that they are having problems with wells not working, but that is absolutely not true. One of the best balance sheets in the country. They are under spending on their capital and overproducing on their production.

Feels US names will outperform Canadian names, which have impediments such as socialist governments in Alberta and British Columbia, a prime minister that wants to shut down oil sands because of lack of pipeline to take away both oil and gas, and a Supreme Court that is not oil friendly. Management is great and the balance sheet is okay. They have deep inventory and fast payback, but fails to see how Canada in the aggregate will outperform the US names.

A strong management team and their being acquisition focused, he would stick with it. It has been impacted by low commodity prices.

This was a market darling for quite a while. All the energy names have come down quite a bit. This company is still performing well in terms of their net back. He was buying this below $3.

This is fine as they are gifted with good plays, where they have running room production down to around $40. They can grow oil production by about 10% spending 1X cash flow, down into the low $40. Under $40, the stock has been brutalized and he was very tempted to buy it when it was down to $2.10. They can grow production by 10%-13%, but they have to compete against Permian Basin companies that can grow by 40%-50%. He doesn’t see the Saskatchewan domestics competing for the imagination of the US investor when there are so many other alternatives available to them.

A good, little, oil/gas producer in Southern Saskatchewan. A well-run company with good management. Trying to pick a bottom on this is a tough one, but a year from now, he would expect the stock to be higher.

It broke below its book value and is heading south because its fair market value is 91 cents and it is at $2.20. The balance sheet is okay, but the stock value is not supported by its earnings. He would not personally gamble in it.

(A Top Pick Feb 10/17. Down 18.88%.) A lot of the smaller intermediate names have suffered. This is a good little company. They did a large equity issue at the end of last year to buy some assets. It is going to take some time to see the results. Great management.