Whitecap Resources (WCP.TO)

This has become a dividend payer. Focused on the balance between growth and dividend. Well-managed. Impeccable balance sheet. One of the lowest payout ratios in the industry. A report indicated they could maintain their dividend, 5% growth with oil at $70 US and still be at 100% payout ratio. 5% dividend yield.

Chart shows a nice little trend. This is one that has sort of bucked that bigger energy profile that where on a lot of other energy companies. Well favoured by a lot of analysts. Chart shows that it looks like it is really trying to hold in here. He sees no reason you should Sell this.

Amongst the dividend payers, this is probably the best one to own. Very low debt to cash flow at 1.3. Enterprise value of 7.2 is lower than the group. Payout ratio of 98%, one of the lowest in the group and very sustainable. Going to grow their cash flow per share at 13.9%. If you are convinced that oil can settle in at around $80, you can buy this.

This is a great story. Has good growth going forward and has had very accretive acquisitions in the last little while. He took some profits when they were lightening up on oils, and bought some of the back last week. A good, long-term story.

Will see some early money. Dividend is one of the most sustainable dividends. At $80 oil can grow production by 15%. Their balance sheet is very under levered. They have low decline. They can bring on production very efficiently. CEO and directors are buying stock actively.

He prefers this over CPG-T. They have one of the best dividend models of the companies he follows. Every time they make an acquisition it is accretive to shareholders.

There was a strong rally over the summer, but is now losing some of that momentum. It could return to the old breakout point if resources continue to pull back. He would not call it a sell at this point.

Classic company, came out with a growth and dividend kind of model and are succeeding with that. Well managed with a fantastic balance sheet. Good infrastructure business.

They have done a good job of making acquisitions that fit the model and generate enough cash flow to be self sustaining. Had quite a pullback and so it is not a bad time to put money to work, but do so slowly and cautiously.

The company has done everything right. They will make money even if oil goes to $80. Nice Debt to Cash Flow. Sees its all-in payout ratio being 96% for 2014. He would Buy on its current weakness.

Prefers over BTE-T because they are adept at doing acquisitions and even increased their dividend. The scale of the company is smaller so the acquisition moved the needle more. They can grow 15% every year and still increase their dividend.

Very well-run company. Just did a big acquisition and had an equity issue that was very popular. They upped the dividend when they had that issue. High-quality company with good prospects for growth, but he thinks that growth is predicated on acquisitions, and you need an environment where they can pick up these land packages cheaply. That environment is a bit more tired than it was a year ago. Fully valued.

4% dividend, very well run.

The dividend on this looks okay. People worry because the dividend payout has been quite high as a percentage of cash flow, but their cash flow has been rising fast enough, and we might even see a dividend increase in 2015.

Good-quality company. As an alternative to this, he owns Surge (SGY-T) and Cardinal (CJ-T). This is a great company. Has a lower payout ratio for their grouping, somewhere around 18%-19% in decline rates. Their all-in pay out ratio is less than 100%.