Whitecap Resources (WCP.TO)

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.

Energy is the biggest weighting in his portfolios. Producers with significant dividend payouts are his second highest industry. They are good at adding resources in an efficient way. Have a great dividend policy. He expects continued great production growth.

Had a great move and they raised equity when they did an acquisition. They are doing what CPG seems not to be able to do with issuing stock and making acquisitions. He would not add here, but hold if you own it. Will be one of the better growth stocks in the sector over the next couple of years.

Have done a great job. Proven management. Is a top, core holding. Done a great job of assembling the assets you want in a dividend payer. Market does not fully grasp the upside potential of a recent acquisition. He has no reservations recommending this.

One of the most conservative dividend plays in the oil patch. Just closed an acquisition of assets from Imperial oil. He really liked it before and now he really, really likes this one. In 2015 they will spend 85% of their cash flow and grow the dividend. Yield is 4.93%.

Management did a phenomenal job. He is going to be able to surprise the street. This is the one to buy. They made some great acquisitions.

A yield company. Very, very sharp at clever acquisitions. They just purchased an imperial oil asset and now can grow at a very good rate. 5.1% yield.

Has done very well. Management has really capitalized on the properties they have. Drilling success is pretty astounding. Also, pay a 5.6% dividend. Just completed a new financing deal. 96% payout.

(Market Call Minute) One of his favourite names.

A younger version of CPG-T. It is stalled out in the area for a while. With the deal they did today they double their oil production. He likes it in here and bought today. Likes the story. Don’t read much into the seasonality. 5.6% yield. Recently increased dividend to attract more investors. It is part of the attraction of the group.

Their payout ratio to earnings is around 100%, which means that to sustain the dividend, they need to grow. Their track record on that is really good so far, so he would be watching it but not nervous about a cut coming. As they continue to grow, they will probably keep raising.

(Market Call Minute) Great yield, slow decline assets.

(Top Pick Feb 27/13, Up 40.86%) Continues to hold. Premier dividend paying stock in Canada. Has a real focus on driving costs down and building value on assets. Will continue to pay a great dividend. Expect production per share growth. 15% total return is reasonable.