Tourmaline Oil Corp (TOU.TO)

(Top Pick Mar 20’13, Up 33.28%) The oil price plus Putin have benefited it. They are one of the best.

Looking at it carefully. They are a leader. Have terrific properties. Charlie Lake has 1200 drilling locations. Sees production growth. 15%+ capital gain expected, but no dividend.

(Market Call Minute.) The problem with this is that the earnings forecasts have been slipping and it is not particularly cheap.

One of his largest holdings. If you own, don’t sell your core position until something structurally changes with the company from an earnings/production operational update issue. He has trimmed along the way just to keep his portfolio percentages intact, but is quite long on the stock and continues to like it. If you don’t own, he would recommend buying it as one of your key names in your basket of natural gas exposure in Canada. He could see 15%-20% upside this year. Tailwind on this story is not only their operational excellence, but also the natural gas price.

(A Top Pick April 17/13. Up 33.45%.) Even though there seems to be a weakness in the commodity of natural gas, you can still make money in a company that produces the commodity. This is heavily weighted towards natural gas. What he likes is that you are buying into the best management team in the business when it comes to natural gas and sitting on some of the best acreage in Canada. Their production rate far exceeds the national average. Thinks they will be able to grow production by 70% this year and upwards of 35% in 2015. He has the stock valued at roughly 6.7X next year’s enterprise value cash flow. Historically this company trades at about 8. As we get closer to year end, people will realize just how cheap it is and he is expecting it to be a $60 stock

Likes it and if he was going to buy another gas stock it would be this one. A bit pricey at this point but on any pullback he would look to own it. Great cash flow growth and production growth.

Premier Nat Gas producer in Canada. Great balance sheet, significant inventory and running room. There were some analyst downgrades, probably just due to valuation. You can reasonably expect this company to increase in value 30% per year.

A great growth business in the natural gas space. If you want to be in this area, you want to be in names that are growing more. This has a great reputation for growth and a great management team and have been executing extremely well.

Mostly a gas play that a lot of analysts like. A fantastic balance sheet. Doing all the right things. Gas has done extremely well with this weather. Has backed off a little bit but this stock is done extremely well.

(Market Call Minute) He has made nothing but money with this management team.

(Top Pick Nov 1/13, Up 20%) Increased size of position today on back of deal they announced. Every time these guys raise money the stock goes up. One of the best management teams in the business.

(Market Call Minute.) Great company, great management. Have grown by leaps and bounds.

Thinks the stock has a shot at $60. An expensive stock. An interesting study was done looking over the past 3 years as to which stocks did best and it was always the more expensive ones. Trading at about 8.5X Enterprise Value to cash flow but when you look at the rate of growth and the drilling depth that they have come, they have a long line of sight to double their production over the next several years. Management is strongly invested in the company. Could trade at $60.

Even though this has grown to a large degree, there are still periods of time when growth is accelerating and market realization is weak with that. Feels this is one of those golden moments to go ahead and Buy. Just went through 100,000 barrel a day equivalent ratio, but more importantly, the ratio of production is going to come from condensate natural gas liquids and a little less percentagewise in natural gas. Therefore, netbacks coming off production is going to be increasing.

(A Top Pick Oct 26/12. Up 27.99%.) His top holding and he has bought a lot more since picking it. Could have been his Top Pick again. Have a Charlie Lake oil play that is going to go from zero barrels to a visibility of 20,000 barrels a day next year. Growth in the next 4-5 months will be phenomenal.