Vermilion Energy Inc (VET.TO)

Geographically diversified with European operations. Good balance sheet. It generates free cash flow which supports the yield of 5.94%. You’d have to see quite a downturn of current prices to see the dividend being in jeopardy. Since 2011, they have gone from 35,000 barrels a day to 65,000. With Carob coming on, it should get even better.

Canadian Natural Resources (CNQ-T) or Vermilion (VET-T)? Both are core holdings. 2 different sizes with this one being an intermediate. This is more of an international diversified company. Its next big catalyst is Carob coming on in Australia and will be a big driver of cash flow generation. Likes them both. 5.8% dividend yield.

Has seemed to take forever for Coribb to finally come online, and that is ramping up now. Full ramp is going to take another 3-4 months. Feels the dividend is sustainable. During the weak period of January-March, a lot of fund flow found its way into those names that were perceived to be much lower risk. This was one of them. Because of that the stock held up very well, relative to many of its peers. As a result, it never fell as much as oil fell. Because of that he finds the valuation not overly compelling. Feels the 6% dividend yield is sustainable.

When he starts putting money back into a sector, he likes to go into the one that did the best. This one did the best which means money stayed with it. Assets are not just in Canada, but offshore as well, mostly in Europe. They get the higher pricing of Brent. Dividend yield of 6.04%.

If oil continues to go up like it has, she would expect this to do better than the energy index, because it is an excellent quality company. Has traded a little weaker than its peers, because she thinks people are looking at other names just to get exposure to oil, because this does have a lot of natural gas exposure in Europe, where gas prices have been quite soft because of the mild summer. Sees good visibility of growth in this name. This company has never cut its dividend.

Sold down stocks, but still wants to maintain the 10% exposure to energy. He doesn’t expect a lot from this, but thinks he can get an 8%-10% rate of return over the next year. Dividend yield of 6.2%.

He always overlays a crude oil chart to see how it performs vs. crude oil. There is a lot of oversupply. It is hard for it to go higher than it is here because of that and so he is skeptical of a breakout here.

Thinks they will not raise their dividend this year. They still have a pretty good balance sheet. There payout ratio is elevated, so don’t bank on the dividend. It is one of the brighter spots to be in oil, but not one he would pick away at yet.

Very good management team. Doesn’t like investing in energy companies that pay dividends. This company has probably done the best job of the whole group in terms of finding a balance between dividends and growth. Expects it will do well. Has good exposure to Europe through its oil/gas production there. If you want a dividend play, this is one of the better ones.

Well diversified. Management is considered to be quite good.

One of the best managed companies out there. They did a smart thing and went international. They have production in the Netherlands, Ireland, Germany and Australia. All those areas have higher commodity prices than we do, especially in natural gas. This gives them a better cash flow generation. They are a low cost operator. Thinks this will give you a lot of upside on a conservative basis, going into the next phase of the cycle. Dividend yield of 6.2%.

(Market call minute.) Has been one of the weaker performing stocks, and he would prefer to go to something stronger such as CNQ.

The big advantage this has is its significant producing properties in Europe. They also have properties in North America. Extremely well-run company. One of the better quality companies out there.

We are starting to see seasonality in the energy sector really coming into effect. The chart shows the stock has started to form a base in the last little while and is starting to make an upward trend. The stock normally does very well from the end of January right through until the middle of June.

One of the few oil companies he held onto. He is starting to get very positive about the energy sector right now. Held this one because it is not a Canadian-based company. His company has this with a $60 target.