Suncor Energy Inc (SU.TO)

If you write a call a year out then if it falls you get some premium. He would cut a position in this in half at this point. Crude oil prices belong in the low to mid-$90s for the next year. Thinks oil will correct to this point and so SU could fall 10%.

Just recently bought this for the 1^st time. These names are cyclical and are in favour and out of favour with all kinds of different factors, ruining what is a pretty good story for the last 10 years.

This company has been acting very well. A favourite of American investors. When they decide to invest in the energy sector in Canada, this one tends to pop up to the top of the list. If you are not in the oil sector at all, this is probably not a bad investment. 2.1% dividend yield.

Likes this very much. Has been a disappointing stock until the last 3 months when Warren Buffett disclosed that he had been buying. His target is in the low $40. Well run. Good capital discipline. Will be increasing their dividend over the next couple of years.

Likes the story. Generating free cash flow and there is a lot more growth coming forward when they bottle (?) Firebag so she does see valuation going higher. Currently trading at about 5X cash flow. In a very strong oil environment, if you have a longer time horizon, she could see another 50% on this stock. (Host Comment: $42 is the near-term consensus looking out 12 months.)

Producers and can refine their own production. Suffer less from differential price. Great free cash flow story. Could see further increase in the dividend.

An integrated play that smoothes out a lot of the vagaries of the industry. Finally we are beginning to see some respect. He is somewhat bullish on energy and particularly likes the integrated companies. This company is going to benefit from the oil sands. Have good conventional plays going ahead. Have a refining market and a retail market. The dominant player in the Canadian energy field. Yield of 2.22%.

Until recently, it has not been a very good performer ever since they did the Petrocan merger. They got all kinds of synergies on this but the market didn’t care because most of their production is in the oil sands which have been selling at a discount. As rail improves and pipelines get built differentials will narrow. Refining margins are very good.

A terrific name long term. Great cash flow generator with shareholder-friendly policies.

Have done a very good job of sorting all the Petrocan issues out. You are seeing the cost structure coming down. The integrated really helps you in this environment, especially with all the issues of the oil sands.

Take away capacity out of the oil sands is no longer just dependent on one project, as you now have crude by rail. With their free cash flow generation over the next 5 years, they can afford to pay a 4% dividend so they will probably increase their dividend.

(Market Call Minute.) Loves this one. Cheap stock and lots of Free cash flow.

Bought when he heard Warren Buffet bought it. It will bring a lot of attention back to the sector. Contemplated using it as a top pick but you can’t necessarily just hold it for the next year. It has to be managed. It is his most recent purchase. Use a stop to get out.

On the Petrocan acquisition years ago, they were in a position where operating costs went from $34 a barrel to about $45 a barrel. You now have a company that is performing very well and have got discipline on the capital spending side. Throwing off tons of free cash flow. Yield of 2.2%.

A core name in Canada. Have fabulous assets. Did 500,000 barrels in the 2^nd quarter. The company’s BV was $26.78 at the end of Q2. Sometimes the stock goes below $30, which would be a fabulous buy.