Whitecap Resources (WCP.TO)

There is a lot of good value here in these oil stocks. We do not want to see these companies having to start cutting dividends. If that happens, share prices are going to decline. We need to be sure that these companies are rock solid financially. This is one of the lowest “cost per barrel” companies at about $13-$15. Good dividend and management feels confident it will not be cut.

This has a good hedging position. His target on this is $21. Their CapX program is on line and there is some sustainability. It would be good to wait a bit. We are coming into winter. Also, there are the issues with Russia and Ukraine. There are a lot of politics in oil right now, and because of that market forces are a little dislocated.

Very sustainable dividend. Have been very focused on maintaining a modest decline rate. When your decline rate on your production base is lower and your capital efficiencies on incremental drilling are really good, you have a better chance of delivering free cash flow that you can pay a dividend out of. That is exactly what they do. One thing that is under-appreciated is the rock solid hedging they have in place. In the first half of 2015, they have about 60% of their production hedged at close to $100 a barrel Cdn. Yield of 4.95%.

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.