Vermilion Energy Inc (VET.TO)

Doesn’t know of any reason the stock has been dropping, other than oil prices. The 5.2% dividend yield hasn’t helped. Tends to have a balance sheet that is a little bit stretched to pay the dividend, so they have done worse as people have worried about the dividend. Probably not a bad entry point, but he is not looking to add anything, so it is irrelevant for him.

They are sensitive to Brent pricing. The company’s balance sheet is in excellent shape. They have a long term project in place in off shore Ireland. It will produce cash flow at a very dramatic increase in 2015. This has been known for a while, but when the stock goes down this is less valued. Well managed and have an excellent allocation of capital. The dividend is safe.

A great operator with outstanding production growth. At $92 oil, they have cash flow growth of about 15% net, next year over this year. But with oils down at current levels, he is modelling negative cash flows, shrinking by about 7%. Balance sheet is in good shape, but gets a little bit more pressured. Still very good, relative to peers. The dividend, even with the oil where it is right now, should be fine. If you think oil prices are going back up, then Hold it, otherwise consider taking profits. He still owns a little.

Very well-run company. Has about 2/3rd leverage to oil prices, which he likes. About 35% of their leverage is to Brent crude pricing which he aalso likes. In the 10 years he has been following it; it has never cut its dividend. Getting very close to the start-up of its Irish gas field, which should contribute about $190 million cash flow, net to the company.

Has been a big fan of this. Thinks the challenge has always been, as a dividend paying corporation and its global footprint, that the stock has always tended to be a bit more volatile on the issue of dividend sustainability. Suncor (SU-T) is a much better prospect from a NAV perspective, and looks more stable and interesting.

A lot of its assets are in Europe. With the Russian situation, oil being produced in Europe will be more valuable. Excellent company with good long-term prospects.

Strong management team and he probably should own it. You have to wait for a time where you can buy it. He is watching the most recent pullback. The Irish gas project has to be watched. It is an unknown. Does not know when it comes on if it will be a catalyst for the share price. They now expect production to be better than they initially thought. He has faith in the management team.

Fabulous performer until recently. He has lightened his exposure to oil and gas stock. The price of oil is vulnerable here. Hold it if you have made a lot of money, but don’t add or buy. Thinks oil should be driven down to reduce funds available for terrorists.

(Market Call Minute) Came down again: a great opportunity to buy. Great yield. European oil so they get the higher price.

One of the few that that is up here. You have to go with the inherent strength. This is the typical corrective period. If the US$ calms down then this stock will. It broke below a trend line. If it jumps above it it may go higher.

They have a rising free cash flow profile. A new project is coming on next spring and will increase their cash flow by 13%. Good link to Brent pricing. Their payout ratio will go under 100% in the spring.

This is a pure commodity company and you can’t control the price of the commodity. Thinks this is a good company with good reserves, but it can’t control the price of oil. If oil goes down, then naturally people are going to sell their shares. He would prefer Suncor (SU-T).

(Market Call Minute.) Likes this. Corrib offshore Ireland field is coming on line next year, which should boost cash flow by about 25%.

Has broken its 200 day on a 2 year chart but on a 5 year chart is still bullish and is around 50 day. Sees cash flows growing at around 17% and a lot of upside potentially beyond that model with a lot of assets coming on stream next year out of Europe, the Caribbean and Ireland. Good dividend and low payout ratio. Good balance sheet. Trades at a slight premium t the group, but that has narrowed a lot. Very high quality name.

He sold some higher up. Likes the management. It is very well run. The decline is due to the price of Brent. Gas prices in Europe have been declining somewhat. He would consider adding to it at these levels and he is looking at doing that himself.