Seven Generations Energy Ltd (VII.TO)

He would not yet own them. They stubbed their toe on guiding the street late last year. It will be post-Q2 now. If it gets to $20 he would step up, however.

(Market Call Minute.) He loves this. It has been hurt. A high liquids volume company. A one asset play.

(A Top Pick Nov 11/16. Up 3.27%.) (BNN showed June 27/16! – Bill.) Still likes this. They had a tough 4^th quarter production wise. Sitting on one of the best resource plays in North America.

They went up to 90,000 BOEs per day very quickly and they are now forecasting faster growth. They would still get hit on the cash flow without external capital.

(Market Call Minute.) Now is a great time to pick up this high-quality asset, one of the best growth profiles in the space, and one of the best valuations for that level of growth.

The mode price is $28.34, a 9% downside. If it pulled back to $23.75 it would be cheap. He buys on dips.

(A Top Pick Nov 21/16. Down 0.99%.) Natural gas. They have tapped into a very liquids rich play, where they are getting a lot of other fuels and condensates along with natural gas.

Tourmaline (TOU-T), Seven Generations (VII-T), or Whitecap (WCP-T) for price appreciation? All 3 of these companies are really well run energy companies. They have all done well operationally and stock-wise over the last year. His 1^st pick would probably be Tourmaline, which has the best combination of quality management and growing its earnings and cash flow, with a relatively reasonable valuation.

This is in the Montney and they are drilling liquids rich gas. They know how to keep the costs down. Almost 200,000 barrels a day. This is a management team that has built companies before and are doing it again. One of the lowest cost plays in the Montney. Although they are producing natural gas, there are a lot of liquids that come along with it. (Analysts’ price target of $38.16.)

(Top Pick Aug 9/16, Down 1.57%) He likes Nat Gas. They have economic projects. He is going to continue to hold it. It is subject to the ups and down of the market.

They spend heavily and are in an area where you have to. It is operated US style where you have to spend heavily and quickly. He expects good quarters out of them. It is a plumbing play where they spend money and get production out of the ground.

Still sees more upside in this story. It is a cheaper way to play gas, because at $50 oil essentially their gas “break even” is zero. For them, gas really is a by-product. As well, their gas is piped to Chicago, which makes her a little more comfortable than the gas that is in Western Canada. They bought Paramount’s assets. The company has an excellent track record of execution and there is more upside in terms of more upside in the drilling they are going to have on the Paramount lands. It gives them a lot of running room for future growth. A well priced story.

He has been pretty cautious on energy since 2014. He likes to find companies that are able to get through a really tough market intact in a strong position, and able to take advantage of it. This is a very low cost finder and lifter of gas. They bought the assets of Paramount and have had great success in taking those properties and adding significant low cost production. Thinks that the near term outlook for natural gas is attractive.

This came from nowhere 5 years ago, to now producing 125,000 barrels of oil equivalent. They’ve done a great job. It is being driven by the fact that they have one of the best resource plays in North America, in the Montney in Western Canada. They have 10 years plus of inventory that they have just added to. Have also done a great job of reducing costs.

A liquids rich gas name in the Montney. About 50-50 now between liquids and gas. These guys know how to do it. They are already at 85,000 barrels of oil equivalent production. They will grow at 105,000 barrels, and can easily see it growing to probably 200,000 in the next couple of years.