Whitecap Resources (WCP.TO)

One of the most sustainable and attractive total return energy stocks in Canada. Spending less than 1X cash flow. They can grow production by 14%-15% plus pay their existing dividend. Because their wells have been so profitable, they are generating a ton of free cash flow. If they were to take just half of their free cash flow next year, and roll it into the dividend, they could increase it by 33%. Reporting on Aug 7^th and he is hoping they increase their dividend by 5%-10%. Still trading at a discount multiple. Thinks it will be a $20 stock over the next year or so. Yield of 4.53%.

Thinks the stock will continue to go higher even though it has already gone up quite a bit. Added to her holdings last week. Thinks you can see closer to $20. Good management team with fabulous assets and a good yield.

(A Top Pick July 20/13. Up 53.87%.) Continuing to deliver good production growth. Expects that at some point there is going to be a lot of consolidation within the sector. 4.6% yield. Would hesitate to buy more at this point, but still a Hold.

A really nice chart, and today’s activity is really quite good. There were a few days of pullback, which is quite normal. His 2 support levels are $16.05 and $14.90.

(A Top Pick August 9/13. Up 44.9%.) This story has even gotten better. They made some good acquisitions. Have kept the balance sheet in good ratio. Now they have another area to have balance capital expenditures to sustain the dividend for a long period of time.

This is the marquee name in energy. You definitely want to buy this, but you have to be prepared, as it is more volatile than some of the bigger integrated names. If you are willing to withstand the ups and downs, this is a great start. Has a great yield. Growth trajectory is one of the more favourable ones in the business.

This group has been on a tear, so if it’s new money, be cautious. If you have a good time horizon, he can see the group continuing to work higher. If you want to go into energy, look at the oil service sector, which has been and is still lagging.

Sees big cash flow growth of 17% compounded annually. Sees them rising dividend possibly over 45% next year. Dividend looks safe. Guiding a really nice production growth and a really nice balance sheet.

Have a very low finding cost, and are very good at growing their production reserves. He has just the oil/gas producers, specifically because of volume growth, not because of the high price of oil. However, in the last couple of days oil has cleared a pretty significant hurdle of $104 and $105, and points to higher numbers. Thinks this is attractive, and it has dividend growth.

There are probably some legs left in the stock, but not to the same extent that it has had. You get a nice dividend, and there is still some growth. It has to flatten out here bit. Thinks it could be $16.50-$17 in a year’s time. That plus the dividend, and you would be fine. Trading at 9.4X price to cash flow, which is higher than the average. If it retreats to “no growth”, and just has yield, you’ll see 7X cash flow and a $13 stock.

Owned for a while. A sleep at night story. Could increase dividend by 50% next year if they want to. Have such great assets they can grow production by 14%.

Getting paid in US$ and their expenses are in Cdn$. This has been one of the best performers in the Junior/intermediate area. Good production facilities. Lots of wells to drill. Very solid management. Good fields. 5% yield.

Light oil has been a place to be for a lot of producers and this company has been rewarded in the market for being in light oil. All the growth in the US is light oil as well. You have to wonder if the US light oil, at some point, will squeeze out the Canadian oil. What they don’t really have in the US is heavy oil and they have retooled the refinery process in North America, more to a heavy oil complex. (See Top Picks.)

Really liked the recent transformational acquisition they did of Imperial Oil (IMO-T) assets. Financing was done at around $12 and the stock is now through $14. He sees this as being a potential $16-$17 stock in a couple of years, plus you’re getting about a 5% dividend yield. Nice balance between growth and income.

Has the most successful combination of dividend and growth on the street. This is not so big that they can continue to do what they do for a while. A little more risk than some of the larger companies. He prefers Crescent Point (CPG-T) which he feels is more undervalued. Expects both of them will do 10%+ over the next year.