Tourmaline Oil Corp (TOU.TO)

He sees a better opportunity in heavy oil producers at this point – although he is bullish oil in general. He would not own this stock today.

It has been a great success story for shareholders. You want to buy it when it dips. It has a very clean balance sheet. They are raising their percentage of liquids. Below $20 it is a buy.

Tourmaline vs. Whitecap ( WCP-T ) Weighting in gas is weighing it down, you’re stuck competing against all the other gas producers. Whitecap is a more interesting name because of oil weighting, so they’d choose that one.

He's owned this since the 2011 IPO. Nat gas stocks have struggled over the past year. They've curtailed their growth in nat gas and re-focussed to the liquid side which grew 50% over the past 18 months. It's trading at 4x next year's cash flow. They're starting to pay a dividend. Buy it for the long run with growth in the next three or so years. The commodity price has hit a bottom.

Similar to WCP-T, it is more of a bread and butter drilling story. It is trying to be consistent and manage the balance sheet.

TOU-T vs. VET-T. He owns neither. If he had VET-T he would ask himself if he liked the dividend or would prefer more capital appreciation. If the latter, then there are better names. If you are bullish on oil, TOU-T it trying to increase their liquids rating with a token of a dividend and modest growth levels going forward. He does not get excited about it. He would own it if he was bullish on gas. He does not expect a pop.

He thinks this is a high quality hold, but does not have enough of a high enough beta to oil. Good assets and management team, but won’t be able to really crush it in the next year.

Very well run Natural Gas producer in Alberta. Good balance sheet. They are not big fans of the natural gas market now. The look more at the liquidy names.

He is light on the energy side. With $70 crude the energy sector will get better. As a sector these stocks are pretty cheap if we knew where crude and gas are going to be. There could be money flow into the sector if we knew where crude could move to. We need the infrastructure to come into place.

It went public in 2010 with 1 barrel per day per 1000 shares – now it is 30 barrels. They have become more focused on oil recognizing the difficulties in natural gas. They now have a modest dividend and he likes management. Differentials on oil have narrowed as well.

He thinks the resource space is being completely ignored. Their production growth has been amazing. A fantastic company. He wants to own this one if they would own 2-3 companies, but has selected Cenovus instead. He only has one bullet for this space.

They are the cheapest producer and worry about the product further through delivery. They have a diversity of market. He is sticking with it.

He believes this natural gas based energy stock is technically showing an upward bar recently on the weekly chart. This suggests a building point could be forming. If it falls below $19, he thinks this move could be a fake-out. He would expect resistance at $25 and then $33. He thinks there is a good risk-reward here. (Analysts’ price target is $27 )

(A Top Pick December 27, 2017. Down 10.29%). This is a natural gas stock. There is a cloud of negative sentiment around Canadian energy. He believes that the cloud of issues that plagued Canada in 2017 are resolving themselves. He sees this as a low-cost operator and disciplined. He expects this company to do well at the end of shakeout. Tourmaline added a dividend, which shows a lot of self-confidence in the company. They have very strong management, very high insider ownership, and is committed to the shareholders.

This was one of his top picks in December 2017 and still is. The issues that have plagued it in 2017 such as the production overhang and the demand issues will alleviate themselves naturally over time. For example, the Alberta government is talking about replacing coal with natural gas for electricity generation. Also the management team is very much aligned with shareholders. (Analysts’ price target is 27.00$)