Vermilion Energy Inc (VET.TO)

VET-T vs. CNQ-T. VET-T is trading a bit more expensively. She likes the CNQ-T story better from a valuation perspective.

Recommended the stock before. Good asset base in Europe. Sells Brent and higher cost oil. Pays a reasonable dividend. Good way to get your toe in the energy market without taking too much risk. (Analysts’ price target is $53.73)

They get very high gas prices in Europe. The stock has held up very well. It could be a core holding.

This is part of his thesis that energy stocks will be a beneficiary of a market rotation. Thinks there is some catch up to be done on oil. Oil moved up from about $50 to about $61, and yet this company is just starting to move. Chart shows it has based, putting in higher lows, and thinks it is just the beginning. Wouldn't be surprised if this got back into the low $50s. (Analysts' price target is $51.50.)

(Market Call Minute.) A super high-quality company. It has a multiple that demonstrates that. He would sell this and buy an out of favour inexpensive US oil producer instead.

This is one he wouldn't hesitate to buy today, but there is a possibility you could get it at a lower price. Oil and gas is not going away and demand is growing every year. This company has been a great consistent operator in multiple jurisdictions. They've never cut the dividend. Dividend yield of 5.5%.

(A Top Pick July 27/16. Up 9.79%.) A natural gas producer, but they produce into the European market at a much higher gas price. They hedge, and are in 4 different basins. It has a high valuation, but it consistently meets and pays its dividend, plus you get a little bit of growth. 50% of the Cap X is coming back to Canada from Europe. They've had incredible rates of return, and are now saying they are going to get the same rates in Canada. So far, it’s been true.

They have a lot going for them going forward. They have a diversified international portfolio. It trades at a premium to NAV because of the attractive dividend. It is a growth story and people love it because of the dividend.

It is diversified into Europe and Australia. It will probably be impacted a little by tax loss selling. It is very well run and is a low cost operator.

It is a hybrid. It has held up relatively well. They are a good producer with a decent yield. It is not expensive if you think oil stays at $55 or could even run to $60. He likes energy for the last little while.

(A Top Pick Dec 2/16. Down 18%.) He was too soon on this. The main attraction is its European location, and being able to work with European regulatory types. Have decent fields that will continue to be developed. Good dividend.

(A Top Pick Nov 10/16. Down 13%.) Has most of their oil production in the North Sea, France and Australia, so they are linked to Brent prices. Brent prices are up over 18% since this was picked, and is surprised the stock hadn’t performed better. Close to 6% dividend yield.

It is coming down because the French government has said they will stop hydro carbon production but that is a long way away. The market is nervous. They have supported their dividend and over time they will replace France.

One of those favoured few companies with unquestionably high asset quality. A management team that lets you sleep well at night. Payout ratio is fairly sustainable, and has the benefit of international diversification. Their multiple has held up much better than some of their peers, so not a name he would buy. Dividend yield of about 5.8%.

Has operations in the Netherlands, Germany, Ireland and North America. A very solid free cash flow generator even at today’s prices. Well valued and well-managed. Dividend yield of 6.1%. (Analysts’ price target is $50.)