Tourmaline Oil Corp (TOU.TO)

Kicking himself for not buying it. A great story going forward. No dividend. He would like to see it pull back before buying any.

If yield is what you are looking for, this does not pay a dividend. However, it has had tremendous growth and is extremely well-managed. Has been watching this for some time, but on a valuation perspective, it is just a little bit more expensive than what he would like to see. If it were to pull back about 10%, he would very definitely be interested in it.

(A Top Pick July 30/13. Up 33.13%.) His largest holding. A lot of natural gas stocks in the Montney have been unlocking a lot of value by getting better and better at drilling and containing the wells. A lot of this company’s wells are coming on stream at twice what they had budgeted. Thinks this has 40% upside from today’s levels, a $75 stock because their acreage just keeps getting better and better. They keep coming out with new plays. Have 10 years of high-grade inventory.

A great company. Has pulled back along with all the other gas stocks, even the good ones. Any kind of non-6 week view, to get us to Labour Day, when we may start to see forecasts for colder weather, and see what the October Futures look like, he thinks the stocks recover and this is a buying opportunity. (See Top Picks.)

Great management team and great asset base. They alluded to now having close to 20 rigs. They have a good track record of executing well in the past.

Delphi (DEE-T) or Tourmaline (TOU-T)? This is the benchmark in the industry. Management team has a well-known track record of building companies to a big level, and then selling them. He would prefer this one because it has more exposure to the play that he really likes, the Montney in Northeast BC and North-Western Alberta.

(A Top Pick Aug 21/13. Up 34.51%.) Top-notch management team. Balance sheet is in great shape. Companies like this can weather the storm when oil prices come down. Very good in terms of being the low-cost provider.

3-year chart shows a strong upward trend. Sees no reason why the pivot point of $59.25 cannot be taken out. The sector looks good, and this has performed with the sector. Sees no problems.

Considers this a premier management team in Calgary. Running about 120,000 BOE’s a day, 85% gas, and he loves that torque. Probably a 300,000 BOE’s a day producer within 5 years.

Huge management holding. They have done a great job at seeing upside that others have not. Assets just keep getting better and better. Huge Nat Gas producer. 25% production growth per share next year.

In the last 6-8 weeks, the stock has gone sideways to down giving a very good entry price. Part of that was because of an equity issue they did. Feels this is the best managed oil/gas company in Canada. About 85% natural gas.

His biggest holding. You can’t go wrong with this. Producing about 140,000 barrels equivalent oil currently. He can see them going to 200,000 barrels a day. Sees this as growing to a $75-$80 stock over the next 2 years.

Got lower prices on natural gas liquids than people were expecting, which pulled the stock down. This lowered the cash flow, but production was pretty much in line with what people were looking at. A very, very well run company. A pullback like this, could almost be looked at as an opportunity. Very good management.

A core position. One of the hardest things to do in investing is to stay with a winning position. We are in a great market right now for energy. He doesn’t sell in May and go away. Believes there is upside in this group. Great growth and great geographical location and a good dividend. It might take a breather in here. He would continue to buy.

(Market Call Minute) Best exposure to nat gas. Great management team.