Spartan Energy Corp (SPE.TO)

This is the third iteration for the team. They now have the confidence of the market and will be a consolidator in the industry in this area. This is a two year investment for him. Thinks they can do 30% per share growth. He thinks they will beat this number.

A top holding. He was lightening up yesterday because they were up 10% recently on news. Loves the team and asset base. Remains a large weighting. It is fairly valued now. It is a question of new plays they will expand into. He is monitoring the weighting and selling a little to keep it down to 6%, which is massively overweight.

Picking off companies that pay out too much in dividends. It is fairly valued to modestly cheap. Lots of low hanging fruit. They are going to create shareholder value.

Up 343% in the last year. He likes the company. The company has a strategy about how they will be operating. Very intrigued by them. They know what they are doing.

South East Saskatchewan producer. Good drilling prospects. Management has built and sold two businesses in the same location. You could put this one away for a while so management can grow the business.

Now buying Renegade (RPL-X). You’ll be pretty happy with how this management team executes over the next few months.

Set to acquire Renegade (RPL-X). The vote is the end of March and once that occurs, he thinks there will be an uplift in the share price. Spartan’s management team are proven money-makers. Their core expertise is in Southeast Saskatchewan. That is where all the Renegade’s assets are. There was a taint on Renegade because the stock did so poorly and people thought their assets were of poor quality. That is not the case. He thinks they are going to grow production by 25% this year and believes they can grow up to 45% next year, which is higher than what consensus is right now. He can see the stock trading at $3.50. Feels the risk is very low.

Merging with Renegade (RPL-T). Will be the third iteration of this entity. Management has great track record. Changing name to Spartan. Will not pay a dividend. He would buy Renegade to play this. Thinks the deal wraps up in March. 10% free cash flow and 30% production growth potential.

Recapitalized recently by a team that ran Spartan. Demonstrated in 2 previous iterations their ability to add value for shareholders. They were looking for an asset and Renegade was a great asset. Renegade had suffered some execution issues while converting to a dividend payer as well as being a target by a dissident shareholder. Saskatchewan light oil is an excellent suite of assets. Has very high hopes for this and is very excited about what is around the corner for them. This is going to be a $500 million enterprise business with lots of upside inherent in their Viking and Bakken exposure.

Raised $75 million at $.49. (He got in on this and has to hold for another 3.5 months.) Great company. This is a bet on management. Bought a great asset recently, which should work out exceptionally well. Stock had a huge run. There is a lot of miscommunication out there. Feels management is going to deliver a lot of success. Stock got pushed to level that he thinks is fully reflecting quite a bit of the optimistic growth story that the management will deliver, but in 3 ½ months time there will be a lot of stock that will become available. Buy half a position today at current price and be prepared to buy more if it pulls back.

Really a call on the management team. They’ve been hugely successful on 2 previous iterations. In December they did a private placement where they seeded the company with $25 million and they bought into this asset. This is a team where you put money with and leave it for a year or 2.

Really good company and trades at 5X enterprise value to Cash flow. About 78% light oil. Good management. Pretty cheap on current production.