Tourmaline Oil Corp (TOU.TO)

Energy has been a difficult space and continues to be. Within the group, this is a high growth company, but it has a lot of Gas exposure. He would be careful because (a) he is short the energy sector in some funds and (b) we are at a time when people do a lot of tax loss selling and this one is going to be hit by it.

(A Top Pick Aug 25/14. Down 46.84%.) The sector sold off, and compounding that, especially most recently, everybody loves the management team. As companies grow at the rate that they do, eventually the law of big numbers catches up, and it gets more and more difficult to offset declines. He expects gas prices to be incredibly weak this winter. This company is roughly 87% dry natural gas, and he can see the stock having a bit more in headwinds relative to some other names.

It is his number one growth story. The management team has been absolutely spectacular in two previous iterations. When this market moves it will absolutely be a go to name and institutions will pile into it. They have incredible assets.

(A Top Pick Nov 5/14. Down 23.91%.) Still a core name for him. A liquids rich gas producer. It is quite unique in terms of its size, in that it is producing over 140,000 BOE’s a day but still growing production per share, in the neighbourhood of 25%. He sees several years of growth ahead of it.

(A Top Pick Sept 13/14. Down 39.56%.) Growth is bang on, it’s just the product price. Has through production growth of 20% per year. He is hoping for a little more stability and upside in the price, and this will move again.

(A top pick July 25/14. Down 44.24%.) It is being penalized along with a lot of other names, even though it only has 17% liquids exposure. He still likes all the attributes. Isn’t buying it currently because he is targeting oil names that can go up by 50% without taking on a lot of risk. This one would be 30% rather than 50%. If you are bullish on natural gas, this has great insider ownership, a fantastic geological team and low debt.

They all continue to pull back. It is like capitulation the last couple of weeks. She has not started buying energy for new clients. She thinks there will be more volatility for the next month or so. It is a well managed company, but you can focus on larger cap, well managed companies with good balance sheets.

He thinks the two projects will happen. Between 2016-18 you will see some of these large companies try to get more solid molecules under the ground. TOU-T will do wise things.

Very well managed company with an excellent balance sheet. They have a good cost of capital. Their projects yield a good rate of return.

One of the best run oil/gas companies in North America, maybe even the world. They have done all the right things. Have been buying assets for pennies on the dollar in the last year or so. They have enormous resources. If and when this LNG thing comes together, this is probably the 5^th largest gas company in Canada. Low, low cost producers. When energy prices recover to a more reasonable level of $70-$80, this will be a $60-$70 stock.

(A Top Pick June 27/14. Down 29.94%.) This is considered a top holding among his growth oriented names. Gas producers continue to push the envelope in terms of drilling, application of technology and their base of operations. They never stop going in terms of acquisitions. Just disclosed some new Montney drillings that will expand their inventory base. It can go from its base of 140,000 BOE’s and easily double that in the next 3-4 years.

(Top Pick June 9/14, Down 31.04%) This is a name where they continue to exceed people’s expectations. As the year progresses they should unveil even more plays that the street is not expecting. As the price of Nat Gas rallies into the fall this would be one of his favourites.

One of the best run companies in the oil/gas space. It is mainly gassy. Production this year will be almost 50% higher than it was in 2014. There is a lot of growth ahead of it. Also, one of the lowest cost producers out there. The business plan is to grow it so large that a huge company would want to acquire it.

As we get through the summer and into next winter, you are going to see a little bit more of a drawdown next winter on gas supplies, because of the lack of exploration. This company has always met its expectations. Looking at 165,000 barrels a day this year. Very, very well-managed.

Likes this company. They reported earlier this week. Had a little bit of a problem and their production was down a little bit for the quarter. It is now back up to where it was. They are growing quickly. As long as they are growing production (20%-25%) as fast as they are, they will not pay a dividend. Thinks it goes to the high $40's in a year, but will take 3-4 years to get back to its old highs.