Tourmaline Oil Corp (TOU.TO)

(A Top Pick Sept 12/16. Down 16.96%.) He still likes this, although he doesn’t know if he would be buying it just yet. We have had a very warm winter, the 2^nd one in a row, that has really put a negative sentiment into natural gas. However, the positive thing is that the inventory levels are 10% below where we were at this time last year, and we are sitting right around the 5-year average. Demand has been picking up significantly, both from US industrial users and exports.

(A Top Pick March 21/16. Up 2.93%.) Primarily natural gas. There is some concern that Canadian natural gas will be trapped in Canada if we can’t move it. This is a great company, and the current price has always been a good entry point. As a growth stock, this would definitely be one of his picks at under $30.

Natural gas. This has a far bigger runway ahead of them over Peyto (PEY-T). They’ve recently just made a great acquisition of some assets from Shell which ironically, was sold to Shell by this company’s predecessor. Tourmaline’s team is very, very familiar with these properties. They are contiguous to some of their properties in the Montney, and the synergies they can get are going to be very, very favourable.

(Top Pick Dec 1/15, Up 19.05%) You benefited from the run up in the Nat. Gas price. He would be in an energy infrastructure stock.

He believes it will be headed upward because of the commodity and production growth. But there may be some more near term downside, based on technicals. You are going to see this move to a higher price point, but short term there will be some volatility.

It is able to raise equity at a significant premium to book value. Management is first class. If there is a correction to the price of oil, then this is a high beta stock. He thinks you may be able to buy the stock below $30 in the next quarter or so.

(A Top Pick Nov 21/16. Down 7.31%.) He still likes natural gas going out the rest of this year. Demand continues to pick up. North American gas inventories are down by about 10% from where they where last year. Industrial use is increasing. The company has a track record of building things and selling them off, and they have a big stake in this company.

Management has brought the costs down and are buying things cheaply. No one finds energy like this company does. The go-to gas name in Canada.

His preference currently is natural gas. There is potential upside than there is in oil, and a lot less international stuff that can affect it. He just bought this today. It doesn’t pay a dividend, so only bought it for accounts that are not dividend sensitive. They just bought a lot of Duvernay assets from Shell at ridiculously low prices. Good management and good properties. (See Top Picks.)

He really likes this company. Doesn’t own it, but only because he owns other companies instead. It has been one of the best managed of the gassy companies in the oil patch, and the price has always sort of reflected that superior management capability.

One of the premier natural gas producers. They have an excellent cost structure and a pretty good balance sheet. Recently did a pretty big acquisition from Shell. His issue is that the company is bumping up against 200,000 barrels a day. If you pick a decline rate, which he would imagine would be close to 40%, the company basically has to replace 80,000 barrels every year, either organically or through acquisitions. That becomes harder and harder for a company this size.

Tourmaline (TOU-T), Seven Generations (VII-T), or Whitecap (WCP-T) for price appreciation? All 3 of these companies are really well run energy companies. They have all done well operationally and stock-wise over the last year. His 1^st pick would probably be this one, which has the best combination of quality management and growing its earnings and cash flow, with a relatively reasonable valuation.

(A Top Pick Sept 12/16. Up 2.14%.) A great company. They have liquid rich natural gas in the Montney and the deep Basin in Alberta. A management team that is incredibly great at finding energy molecules. They bought a company, sold it, bought a company, etc. This is their 3^rd iteration of a company. Management owns about 25%. Recently did a big deal of buying about $1.5 billion of assets off of Shell. Most of these assets were ones that they sold to Shell 7 or 8 years ago from their last company.

He is positively disposed to natural gas. Because of the quality of the team, he still thinks you can see 25% upside in the next year. They are at 230,000 barrels a day now, and over the next 2 years they are getting up to 320,000 barrels. (Analysts’ price target of $43.59.)

Strong management are doing great things. They are the lowest cost operators in their plays. He does not think you could go wrong long term in owning this. He feels the price of oil may take a bit of a breather.