Tourmaline Oil Corp (TOU.TO)

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.

He has looked at it for a long time. He has CPG-T and ARX-T. He would add this if was looking for a gas stock. The lack of a dividend would limit his interest to some extent. If you see further weakness you might consider buying it.

Stock vs. Stock. SU-T vs. TOU-T. TOU-T is mostly Gas. Gas will have more volatility. FCG-T is a better way to play gas.

(A Top Pick Nov 19/13. Up 3.8%.) Currently it is a little over 60% gas and 40% oil. Released some great 3rd quarter numbers and hit the ball out of the park. Good production growth, the best in their history. Market is not reflecting this. Outstanding management and good balance sheet. Can produce natural gas at full cycle under $3 per MCF.

Chart shows a long uptrend from early 2012, followed by a few declining peaks this year, and broke down through the trendline. Trying to bounce from an old support level which is good. If it can hold and doesn't break below $40 for a little while longer, it might be just a great story to get back into the old support level somewhere near $50. He would like to see a little more proof of that happening.

This is a company with a production of about 108,000 barrels equivalent, of mostly natural gas. A very, very well-run company. Very seldom that you are going to find an oil/gas company this size that can continue to put up 30% per share growth numbers. The big question for him is how long they can keep it up. Thinks what the market didn't like in their earnings release was that they are now getting infusions of joint venture dollars of about $1 billion to accelerate some developments.

Natural gas. Can't say enough about management. It owns over 10%, and the president doesn't take a salary. Has always been at the top of the list for growth per share. They are poised for 35% growth in production next year and the year after. This is a top core holding for him.

Thinks you can buy this one here and just hold your nose a little. This company has always been very, very well financed. Have always been ahead of the game in funding their exploration programs. This gives you an opportunity to buy it at 6X cash flow for next year. The cheapest valuation that this company has been at since it went public almost 4 years ago.

If you liked it at $50 you have to like it a lot more at $39. You want a half position or less in your portfolio. You have to trim so you can add it back when it bottoms. It could potentially fall a lot lower if the momentum picks up to the downside. Never average down, but average into your position.