Whitecap Resources (WCP.TO)

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.

He is quite concerned about small-cap companies, because they are the ones whose balance sheets are most affected. The company was going great guns, but has been backing and filling since 2014. If you are in this, don’t overweight it. Would prefer some of the intermediates like Crescent Point (CPG-T).

Surge Energy (SGY-T) or Whitecap (WCP-T)? Both are decent names, but this is the higher-quality of the 2, so is the one he would pick, but with the caveat that they are both smaller energy companies in a very brutal tape for energy.

Crescent Point (CPG-T) or Whitecap (WCP-T)? This company recently cut its dividend by about 40%, as well as their CapX. They believe they can have their dividend payout ratio under 100%. He likes this as a company that can survive.

This is one he would definitely be adding to at some point, if they cut the dividend. Good management for growth. This has upside on getting acquired. His company has a $13 target on this.

Good quality company. He wouldn’t be in a rush to buy any of these things. If you saw the price of crude go $40-$45 and it looks like we have turned the corner, he would absolutely own this.

(A Top Pick Dec 1/14. Down 14.90%.) Has still been buying recently at around $9 which he finds compelling.

Thinks this will have some pretty good leverage on the way up.

This is one commodity stock that he has added a little bit to. Likes their assets and the management team, and the valuation is good. Thinks the dividend is sustainable in the near term. Its safety depends on oil prices. There is no immediate pressure on it, but if oil prices stay at this level for the next 12-18 months, none of the dividends are going to be safe in any of these companies.