Tourmaline Oil Corp (TOU.TO)

The price of natural gas has been low because of a warm winter. Tourmaline has a very good balance sheet and is a low cost producer. It has exposure to oil and liquids pricing, and he sees it as 1/2 gas and 1/2 oil. If you are looking for just oil stocks, stick with the big ones paying dividends. It could have been his top pick.

Names to look at in the oil space, offering more torque or upside to the price of oil.

Gas has been tremendously out of favour due to the warm winter. US policy has driven pricing down as well. Remarkably good producer. Earnings beat. Raised dividend by 7%. Reducing capex by 9%. Very solid reserve. 20% growth. Trades in line with peers. A good buy here.

Very strong business model with excellent 4th quarter earnings report. Weakness in natural gas prices not a concern. Very low cost operator with excellent marketing and management team. Selling to California and Pacific US to realize higher pricing. Company able to realize global prices with creative marketing agreements. Reserves increasing at steady rate with 85% undeveloped. Canada's top natural gas producers. Stable dividend that consistently increases. Special dividend also adds to yield. LNG Canada will also help business mode. Excellent long term hold. 

Well run, strong company. But we're in a different market right now, where value won't perform as well as growth. If money's rotating out of your neighbourhood, you'll probably underperform. A place to be when energy pops.

Canada's top natural gas producer. CEO was voted top CEO of the year by the Financial Post and owns so many shares and doesn't take a salary. A great time to own this. Shares have been weak in recent months. He expects special dividends ahead and 15-17% total return even at current nat gas prices.

Overall, excellent company with very strong leadership. Canada's #1 natural gas producer. Weak natural gas prices difficult, but overall a great business. Excellent assets that are best in class. LNG agreements will also allow more selling points (higher income). Recent Bonavista deal  very strong. Tax pools and hedging strategy also add to bottom line. Debt levels less than 1x cash flow (very good level). Dividends steady, and also pays a special dividend (~11%). Will continue to own shares. 

The whole natural gas sector will get frothy from buyouts and valuations. TOU is an undervalued stock in an undervalued sector. Could be volatility around their March 6 report, but this is a buying opportunity. Wait till March 6. Targets 60% upside from here.

If he ran an energy fund, he'd definitely buy it, but shares move around alot because it's tied to natural gas prices which are not doing well and face more downside.

Canada's largest natural gas producer, nearly 15% of Canada's NG. Also, they produce 100,000 barrels daily of oil. TOU is a lean, low-cost operator. Warm weather is keeping nat gas prices low this winter, though. They struck a deal with Cheniere to ship their nat gas to the Gulf of Mexico and is shipped to Asia to fetch higher prices (10x higher). Including special dividends, their yield totals 12%. Also, LNG Canada will open next summer on the west coast which should boost demand for Canadian nat gas.

It has a special dividend policy on top of its base dividend. Has a great management team along with great assets. She prefers ARC which has more exposure to liquid rich gas. Gas will still  be needed along with nuclear partly due to coal coming off line and the demand for power. Renewables are good but we don't have the technology for battery storage.

Big fan of ownership/leadership of company (Mike Rose). Concern is that company is not under valued compared to peers in sector. Concern is that natural gas is over supplied. Overall a high quality company. Very strong marketing team also helps (strong pricing for natural gas). 

Well-run and a major oil producer. Very levered to natural gas, which is under a little pressure now. But they enjoy low costs. Nat gas prices may sell off a little more, but TOU looks compelling now.

Has been buying recently given weakness in share price. Commodity price unpredictable, but good overall business. Strong management team and natural gas a good bridge fuel. Would recommend buying. 

Keep it, despite the drop. Valuation is fantastic. He took only a 1/2 position, down 15% on that, but comfortable. Could get more volatility, but in 2-3 years you'll be pretty happy. Big money interest. Make sure it's a reasonable size in your portfolio.