Whitecap Resources (WCP.TO)

He finds oil/gas stocks overvalued. This one offers decent growth and is living within its means. There’s no issue with the dividend.

A light oil weighted company. They have been very acquisitive over the last number of years and have done a very good job of buying assets and extracting value from them. Have a very disciplined program of managing the balance sheet, and have established themselves as the preeminent dividend paying company. Very moderate decline weight as well.

A very careful, consistently executed strategy of buying low decline good formation assets in the right locations. They pay a very good dividend.

Just did an equity raise. It has done very well. A high quality company. Well hedged this year. If oil prices start to move up you won’t have as much leverage with this name.

Great company, management and assets. He exited all his energy relatively early in the fall. Because of its producing assets it has a manageable payout ratio.

An exceptionally well-run company. If you want to own a dividend paying oil/gas company, this is the one to own.

Very strong management team. Even though a new dividend payer in 2012, they have actually been able to increase the dividends 3 times and have never cut it. Even in this environment, where they are facing the biggest test in terms of the commodity downside, they still are not cutting the dividend. They have a free cash flow in the current commodity price environment, which is incredible. Dividend yield of 5.40%.

This can be a core holding that he trades around. He believes in higher oil prices so never go zero weight in this one. A great dividend payer and a low cost producer.

A well run, solid company. One of the best in the sector, but the debt is a little high. They have not cut their dividend, however. It is one of the ones worth owning. They say they won’t be cutting the dividend, vs. others that have cut it. This is a good sign.

The one year chart shows close to “flat” lows in December and January. A base is created by no more lower lows as well as no more lower highs. This is about to test the previous high of around $12.50. This could very well be a base. He likes to see at least 3 tests for both the bottom and the top to form a true base. You will know, probably in the next couple of weeks, if this stock is basing.

Thinks they can sustain the current dividend yield. This has been one of the best run, dividend paying gas companies. Just cut their CapX spending again, down to around $200 million. They continue to demonstrate very prudent planning and are being very dynamic in the way they are trying to adjust to a highly volatile environment. Probably one of the better dividend paying oil/gas stocks to have.

(A Top Pick Jan 24/14. Up 0.55%.) Has cut back on this one, but still holds some. He is waiting to add to this one later. Yield of 6.6%.

Have a really good hedge position and a very good balance sheet. Every single employee is a shareholder in this company. Have very good projects and can weather the storm and come out the other side is a stronger entity than they were heading into it. Can maintain flat production and pay a dividend of 6.82%, while spending only 90% of cash flow.

If they cut the dividend, would you Sell the stock? You hope that they don’t cut the dividend. If they do so, they should do it right away and give an explanation. Make sure that it is not just a dividend cut, but a cut across the spectrum including their spending, and that they have a plan going forward. The people in his shop are saying this stock is okay to go, but he doesn’t own any.

One of the best run companies in the Canadian oil patch. Management is first-rate and has a long track record. They focus on high-quality, light oil resources, mostly through enhanced oil recovery such as water flood, and are running a sustainable business model. The dividend is sustainable, even including the capital expenditures needed to maintain the production. Obviously with oil prices going from $100-$50 it is going to impact on the business so expects you will see minimum production growth this year. This is one you should hold and possibly add to over the next few months. Yield of around 7%.