Whitecap Resources (WCP.TO)

(A Top Pick July 30/15. Down 1.28%.) Has made quite a few acquisitions and they have been on a bit of a treadmill digesting them. He likes management.

A great name in energy. Very well-managed. It has underperformed for the most part over the past year or so. This is kind of a slow and steady one you can own. It pays a little bit of a dividend.

This is in a higher growth mode, being a smaller company with a smaller base being able to grow; easier to grow organically and add in “tuck in” acquisitions like they did earlier this year. Great asset base. This has been a relative underperformer in the oil group, because it has had a great run up to the end of 2015. He likes it. 2.4% dividend yield.

Management has done everything they said they would do. They have a decent dividend. He thinks they will do fine as oil prices go up. It is just a case of how much oil exposure he wants. It has hit his radar screen.

(Market Call Minute.) Lots of growth and a very sustainable model. Also, you get paid even at these oil prices.

It has bought companies before. What they do with their credibility and clean balance sheet is to buy assets from struggling companies. It pays a dividend of 2.68% and they don’t take on debt to pay you a dividend.

White Cap Resources (WCP-T) or Freehold Royalties (FRU-T)? When thinking between 2 light oil producers like this, there is really a big business model difference. This one is an operator. It owns lands and produces wells and does everything itself. Freehold is a royalty company, where other players produce on their land and they get a fee for that. Freehold is a little less risky, but this has a little more upside if oil prices go up.

The stock is undervalued on a relative and absolute basis. They spread themselves out more than some are confirmable with. People have strong confidence in the management team. Buy it on a pullback.

Whitecap (WCP-T), Crescent Point (CPG-T) or Cardinal Energy (CJ-T)? Crescent Point and Whitecap are very similar and would be on his list.

(Market Call Minute.) Doesn’t have a recommendation, but doesn’t like their model.

(A Top Pick March 17/16. Up 16.2%.) This is a company that he continues to have a very large weighting in. He would recommend this to people who are looking for a long-term investment in oil/gas, and want to derive income from their investment.

Still likes it.

Had been Long on this. If you have a constructive view on oil prices, and wanted some reasonably safe exposure with some yield, this is probably the “go to” name. Very solid management team. The dividend should be safe and the assets are reasonably good.

Right now he is very lightly positioned in energy. It has had a big move and he has seen a lot of energy stocks back up. A good company and management is fine. Doesn’t think you are going to get hurt on this except just through the general commodity malaise.

(Market Call Minute.) Likes the name. It is a play on oil. Very strong management team. One of the go to names for energy investors.