Whitecap Resources (WCP.TO)

(Market Call Minute.) Torc Oil & Gas (TOG-T) or Whitecap Resources (WCP-T)? He likes both companies and maybe this one today due to valuation.

They are more at the top of the list. The balance sheet is in good shape. They raised a lot of capital and employed it efficiently. They have demonstrated growth to justify their valuation.

A core name in her portfolio, and should be a core name for anyone looking for exposure to an upside in oil. Recently did an acquisition of Husky’s (HSE-T) Southwest Saskatchewan assets. This gives a pretty nice accretion to the cash flow. They are going to have a lot of opportunity to enhance the productivity of those assets. She is adding to her holdings on pullbacks.

(Market Call Minute.) Good management team, good assets, good execution and pays a dividend, but he would own Spartan (SPE-T) instead.

(Market Call Minute.) Make sure you know where oil is going. This would be a Hold to a weak Sell. He might look at this in 6 months’ time.

He chose to re-enter the sector when the US$ rolled over. This has a lot of light oil and liquids, and is a low cost producer. This is a good combination of being in the right place, with the right cost structure, and a clean balance sheet. Look at this as an opportunity to capture part of that move on the energy side. Has a very long reserve life as well. Dividend yield of 3.11%.

It has been underperforming the last couple of months for reasons that he thinks are unfair. They acquired a company with a hedging position on oil. Management monetized the position and constrained their losses. He feels they will decrease their dividend by about 50% soon. The story is becoming more intriguing than it was a month or so ago. He is holding out for a lower share price.

One of the few oil stocks he has continued to hold for the longer term. Their finding costs are extremely low and have made some great acquisitions in the last couple of years. Well financed.

They spent the 1^st couple of years building out an asset base, in preparation of converting to a dividend paying model. This company stands out as the one being the most successful in terms of executing that type of plan. Did a bit of financing of $95 million recently, and picked up an extra 15% working interest in the Boundary Lake asset, taking them from 75% to 90%. Has a 5% decline rate, so the sustaining capital to keep that production up is less because of that. Dividend yield of 5.25%.

This company is doing extremely well. Still relatively expensive, a very good company, and it should come out OK. It’s the gas companies that are completely distressed that have the biggest performance. Other ones that are more conservative and doing well have not bounced back in the same way. This is a company he would own at the right time.

He has been interested recently. It has been a preferred company on the street over the last couple of years. He wanted to see enthusiasm knocked out of the share price. It is still a good company and well managed, but too promotional.

(A Top Pick Jan 20/15. Down 32.01%.) Cut their dividend. Just raised $95 million today, to pay for an asset. This story has lost a little bit of the momentum that it used to have. He is hoping to be able to dip his toe back into the water at a lower share price.

At a very interesting level. It is back at the low levels of 2012 and 2013. The volume has been steady. It looks like a great place where you would want to buy this name.

(A Top Pick Feb 12/15. Down 53.5%.) Lots of free cash flow and dividend growth potential is still there in a high oil price environment, but their hedging has rolled off, which makes things a little more challenging. It also increases their debt. Too many people were hiding in this story. Thinks very highly of management. Dividend yield of 7.6%.

There is a long downtrend from April. Chart shows it has just made a higher low, but it needs to have a little more meaningful legs to it, as it has to break out of down trending and move up. There is going to be a lot of volatility in the energy sector.