Dennis da Silva
Breaker Energy Ltd.
WAV-T
TOP PICK
Feb 25, 2008
Balanced between oil and natural gas. Produces in west central and southern Alberta. A former Encana (ECA-T) operational group. Have delivered 12 consecutive quarters of per share growth. Undervalued. Looking for great upside.
Took their capital budget from $7 million up to $105 million. With that money, there will be tremendous growth both in oil and natural gas. Big reserves. Low-risk drilling.
Great performer in the last little while. Been able to grow its production pretty dramatically. Good management team and good slate of assets. A junior that is going places.
Had quite a premium multiple for a long time but well deserved but now trading at nice multiples relative to their peers. Good growth potential. Just about to drill a well at Monias BC which could be a catalyst for the stock.
(A Top Pick June 19/08. Down 58.28%.) 50% oil and 50% gas. Just did a financing. Their plays are very long life reserves so they are not fighting declines like their peers. Market got hung up on the balance sheets. Wouldn't buy until there is more clarity on their bank line but if you own, Hold.
(A Top Pick Sept 12/08. Down 46%.) Small-cap energy name. Surprised it has not recovered more. About 50/50 oil weighting. Well run and big suite of assets. Hold.
Nice comfortable holding for 6 to 12 months. They have an asset base that is very high quality, long life. Has been through an issue where the balance sheet was a bit stretched which is not an issue going forward.
19 quarters of consecutive production growth but Q3 might break this. Likes the flexibility they have because of their asset base. As commodity conditions and prices dictate, they can toggle between oil and gas.