Tourmaline Oil Corp (TOU.TO)

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.

Tourmaline (TOU-T) or Paramount Resources (POU-T)? He would buy financials before he bought energy.

Great management team. Spent a lot of money on infrastructure. When you back that out of the equation, they are still a very low cost producer. That infrastructure is now built, so 2015 will see the fruits of that labour. This is a stock that you can buy and forget about it.

These guys have done everything right through the cycle. It is about 86% weighted to natural gas, so he views it as a gas company. Very low cost structure gas and a massive inventory, and execution has been outstanding.

It is still a darling, based on the management. They are performing better than in the past. They are one of the most efficient companies in spending money. One of the better managed and fastest growing companies on the TSX.

He may want to own it. He owns CPG-T. He would want TOU-T for its gas exposure. Hold if you have it. He wants to see where the prices of oil and gas end up at before buying.

Mostly natural gas. Became oilier lately. Liquid rich byproduct. Trades at a premium multiple because of management’s access to capital markets. It has gone down less than most companies, so it is more defensive.

(A Top Pick Nov 19/13. Down 5.7%.) This is a focus on a strong management team with great experience. Pristine balance sheet and a low cost producer. His feeling is that the breakeven oil price is at around $35 and natural gas at about $3.

This is a bellwether stock and is held universally across all energy portfolios. This is a classic scenario where they have always surprised the market with their consistent performance. At year-end they again eclipsed the guidance on the street in terms of their production levels. A 150,000 BOE’s a day company. When this market turns, and it will, this is one of the names that is going to rally first. Buy on weakness. They have hedges in place that makes their budget pretty solid.

(Top Pick Nov 04/13, Down 4.53%) It is a fantastic natural gas stock. The challenge is that 2/3rds of their revenue is from liquids. Production of Nat Gas in September was up 8.9%. We will remain awash in very low cost natural gas. If you are bullish on Nat Gas stocks he has trouble finding a better pick.

(Top Pick Jan 8/14, Down 16.77%) Phenomenal growth rate. Cost structure is amazing. Not a lot of debt and lots of free cash flow. Management team is remarkable. It’s a buy at the 52 week low. This is not for income, but for capital gains and with a longer term view.

This is one of the better names in energy. They have grown very rapidly, but do need to redeploy a lot of capital to continue their growth. Likes the management team.

This company has had tremendous growth and their cash flow has grown very nicely. It’s a great company if energy is in favour, but he doesn’t see energy making a turn anytime soon. He would avoid this group for now.