Whitecap Resources (WCP.TO)

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%.

Sold his holdings. Had thought about Shorting but doesn’t think there is enough of a case for it. A well-managed company with decent growth prospects. Given the low commodity prices, he feels this is a Hold. 6% yield.

A very popular stock, but vulnerable.

One of the best mid-cap producers, and he has a very small, modest weighting in this. In the mid-cap arena, this is one of the best names. Has a very strong hedge book. Also, doesn’t have a lot of leverage. A very good operator. When he sees a recovery coming in the energy space, this is going to be one of the names that he buys.

Still has this in the portfolio even though he has reduced it. Thinks they will make it through this very well. Has a $21 target on this. Still a little bit too early to be adding. Wait until the new year.

Good balance sheet. A dividend payer like some of the others. Of the ones that he doesn’t own, this would be his choice. Well-managed. 1.2% debt to cash flow, the range that he would like. Thinks the dividend is sustainable. He’ll wait a while before he adds this.

Added this stock this morning. If you want oil exposure and a dividend there is not a better name to own. There is total indiscriminant selling. You have an opportunity to high grade in your portfolio. They already announced a dividend increase in January. The best most sustainable yield and they are still growing. Management owns a ton of stock. They fell as much as crummier stocks.

This is one of the best, most sustainable dividend names. At $75 oil and $3 natural gas, it still has a positive cash flow year-over-year, but very marginal. Effective payout ratio is 114%. If you are not in this sector, at opportune times like this you might want to start picking away on a name like this.

Very well run. A very sustainable payout ratio, even at these prices. Thinks their payout ratio and dividend are safe. With the wind coming out of the entire energy sector, the price has been hurt. If oil turned around and moved back up, the stock would normally be a Buy. He has turned back his exposure in energy. Probably has one of the lower energy weightings in his portfolio than what he has had in some time. If he saw some wind behind energy, this one would be on his radar.