Vermilion Energy Inc (VET.TO)

Admired the execution by the management team. Their diversified interests have been well received. The one cautious note is that they are bringing on a large offshore gas project in Ireland. The trouble with offshore natural gas is that it is not as predictable in terms of reservoir quality and how is going to flow. He would like to see this de-risked and flowing before taking a long-term position in this one.

(Market Call Minute.) Very well managed company. Has always run a little bit ahead of what he was willing to pay.

This one had a great breakout. It is doing a series of consolidations along the way. Currently it is in one of the consolidations. The upper trend line that it started this year is still very much intact. He expects the little triangle “flag formation” will break out to the upside. Great-looking chart.

Likes its operations in Canada, Australia and Western Europe, particularly because of the international diversification. Dividend yield of 4.6%. Simple payout ratio of 35%. The “all in payout ratio” is at 100% and allows for better cash flow as well as stable and reliable growth in dividends.

Europe, France, Ireland. Great stock chart. Likes them. 4.2%

High quality company, oil focused. Big project in Ireland, gas but they get Brent pricing. Good one to hold over the long term.

Gone sideways for the last few months and thinks the next real leg up will come when the Corrib gas field, where Shell is the operator, comes on stream in the letter part of 2014. You may have to be patient over the next while. But he likes the company’s prospects.

International operator. He owns it to diversify himself and get Brent crude pricing. A core holding for him for 10 years. Likes it here. Buy at $50 if you can.

Very high margin producer. Q1 profitability was about $41 per barrel versus $27 for its peers. History of very solid performance, solid dividend growth, low decline rates, very safe dividend and a very strong balance sheet. Margins, that looked really, really great, won’t be as impressive relative to everybody else in the oil patch as the differentials between WTI and Brent continue to narrow.

(A Top Pick June 25/12. Up 40.9%.) Has been taking some profits.

Internationally diversified. They earn their distribution. More sustainable model for long term. Prefers this over CPG-T

Has liked this in the past. An international former royalty trust. Has good properties and great management but is not overly cheap relative to its peers. Smaller so it is not on many people’s radar screen so he would be inclined take the money and run. You could rotate into something that is better owned such as Suncor (SU-T).

Diversified geographically. Yield of 4.6% with a good chance of it being increased. Assets in Europe are getting Brent pricing. Their Irish assets have significant possibility of increasing their cash flows.

(Market Call Minute.) Excellent company. Margins are much better than their peers but that is because of the Brent contract over WTI. Thinks this will continue to narrow as more pipelines get built.

Have geographic exposure in Canada, Australia as well as Europe. The European and Australian assets allow them to capture Brent pricing, which is higher than Canadian pricing. 45% of their production is Brent pricing. Also, have a huge asset in Corrib field in offshore Ireland, a natural gas play. Good dividend of about 4.5%. Simple payout ratio of about 35%.