Tourmaline Oil Corp (TOU.TO)

This is one of the better companies that we have in Canada. Gold plated management team with some high quality assets. Thinks there will be acceleration in production because they are ramping up their capital spending in the number of drill rigs they are employing. We should have a fairly reasonable year in gas prices and this company should perform as well, if not better than the rest of the group.

A natural gas producer. If she got really bullish on natural gas, she would buy this. It’s a low cost producer. It is on her watch list. They have all pulled back. In the oil patch, she has tended to stay with smaller producers, which this one is. She would rather own a company that pays a dividend.

(A Top Pick Nov 19/13. Up 18.82%.) Very, very experienced strong management team that has delivered. Had a very marginal miss last quarter. Cash flow growth and production growth is going to be great over the next 2 years. Their forecasts show the debt being repaid. They are always expanding and building their infrastructure.

Do not get rid of it. This is the one stock in the Canadian energy sector that you have to own. They just added some capacity. Hopes one day it gets taken out. Buy on dips.

Does not pay a dividend and he is primarily a dividend manager. TOU-T has put up fantastic growth numbers, but it is a lot of natural gas. Great guns growth story. He wants a more long term sustainable business model.

It is a highly recommended company by brokerage firms. It could be a little rich right here. But he likes to buy companies that a lot of people recommend.

One of the few in an uptrend. This last corrective period was just US$ related. You are near the bottom of the trend line. It looks fine.

(Market Call Minute.) Likes natural gas and this has been a star.

The oil prices are down from the $106 level to $91, but if you look at the two year futures, they are up on the year. If you look at the discount from the current price, it widened to 15% and is now back down to 3. Most of the correction is over. TOU-T is a great company. He did not buy it because it was new. CPG-T has had a history of buying up companies in their area that are doing well, so potentially could acquire TOU-T.

His model price is $48.11, a negative 6%. It is hitting right on its value. but it has had a negative transit of EBV +4. He would be very watchful. It looks like it wants to go to EBV +3 of $41, which would create some value.

(A Top Pick Oct 8/13. Up 31.17%.) They continue to hit the ball out of the park. Will exit this year at about 150,000 barrels a day equivalent. They have a huge contiguous land with all kinds of different zones that they can build. 2016 will probably be at about 250,000 barrels a day. It always looks expensive. Strong management team. You can’t go wrong owning this kind of company. He would use this weakness as an opportunity to pick away at a great company at a very reasonable valuation.

Down 15%, so you can buy this at almost an average multiple, which is the 1^st time you have been able to do that for years. Great track record and great management team. Thinks production BOE’s per day goes from 120 this year to almost 250 by 2015, a double.

Today it is just falling with the market. The energy patch is down today. Oil is down $1 today so fund managers are selling. Thinks they will have a great Q1 with production growth. It is his largest holding and the market is giving you a buying opportunity. They are a growth company now; by late 2016/17 he thinks they will have to decide whether to buy someone or pay a dividend, which he would prefer.

You cannot argue at all with what Mike Rose has done. They continue to do fantastic things. He is a serial entrepreneur in this space and will probably continue to do it. Thinks it goes higher and eventually gets taken out.

(Top Pick Aug 19/13, Up 34.01%) One of his largest holdings. They have a huge amount of acreage and the well results keep getting better and better and better. Great management teams can identify great acreage. Confident they will formalize a 20 rig program for next year. Huge inside ownership. Coming catalysts.