Suncor Energy Inc (SU.TO)

He waited 3 years after the Petro Canada acquisition to see if they could digest it. This now a fantastic investment in the energy space. Thinks it is a stock he can own for a long time. It is throwing off free cash flow for the first time.

There is no way to know where the oil price will go in a couple of years. It is hard to invest in this area. It is a high cost producer with the majority of assets tied up in the tar sands so when oil sells off it gets hit more. But he likes their integrated structure with the upstream and downstream. He just doesn’t see a lot of upside here. He would like to see it a lot lower before adding to it.

Baytex Energy (BTE-T) or Suncor (SU-T)? Certainly 2 very different names. Baytex gives you an 8% yield while you don’t get that with this. For yield hunters, Baytex is one that he would look at. He actually likes and owns both names, and they are both fine. You are probably getting a little bit more leverage in terms of the movement in oil price relative to the stock price with Baytex, where this one might be a little bit steadier being in the oil Sands space.

Growing its production, and has wonderful reserves. Even at $80 oil, he feels they are still profitable.

(A Top Pick Oct 15/13. Down 1.44%.) In all probability this could go down to the $30 level. If so, he will be there buying it.

Sell some Toronto Dominion (TD-T) and get into this? He likes TD, one of his favourite banks, and he has lots of it. He doesn’t know that he would like to sell his bank and would probably Hold them both.

This has tended to be a favourite in the US which is probably one of the reasons why it has been pounded so badly. It has a lot of heavy oil and that is where price stability is these days. Thinks it is in a Buy range here.

We broke a 12 year trend in commodities. Oil has followed. He prefers companies that benefit from falling oil prices.

Canada’s largest integrated oil/gas company. With energy being hit the way it has, this is a really good opportunity to step in. We are going to see some cash flow estimates come down, but nonetheless, this company should be earning around $5 or $5 plus cash flow over the next couple of years. A very inexpensive stock. You are getting the benefit of both the upstream and the downstream operations. Dividend yield of 2.99%.

Solid management and a very good allocator of capital. Expects there will be dividend increases over time. The beauty with oil sands projects and oil sands operators is that once they spend capital to get a project going, there is very little decline and very little maintenance capital to be spent. You will see this company building more projects and expanding, but there will be a significant amount of cash flow being returned to shareholders in the form of dividends.

This is on her Watch List. All of the oil producers have come back quite a bit. This is probably the best name for oil sands exposure. This becomes a call on crude, which she thinks is near the floor.

They are shedding assets that they deem to be non-core, which has done them well over the past year plus. Focused on the oil sands and long-term assets. Have done dispositions to help their balance sheet and rewarding shareholders. He can definitely see a time when he would be an owner of this.

He sold his COS-T to decrease his exposure to oil. This is his remaining exposure to oil sands. As much as environmentalists are trying to shut down additional pipelines, he feels oil will go out via other means. Don’t hold a huge position.

With oil by rail, maybe Keystone does not matter. They are a refiner with upstream and downstream operations. This is a very conservative company. They had very good dividend increases. Worth buying here.

Likes that they have a very integrated strategy. They can access non-North American pricing for 90% of their product. Growth in cash flow over the next number of years is tremendous. The one knock is Fort Hills, but it is still a high quality project that will work for them over the long term.