Whitecap Resources (WCP.TO)

This company has done very well and a little bit of profit taking is natural. They have proven up the intermediate size, high dividend paying oil/gas A&M model. They have clearly proven themselves to be capable operators. If you own, continue to hold but you could also uses pullback to get into this name.

Has been a phenomenal play for the last few years, but in the last 6 months or so, they have been very transactional. Transactions have been good, but they have been issuing a lot of equity. Ultimately they have failed in the last little while to grow production per share and cash flow per share meaningfully. He has lightened up on his position because he felt it has had its run.

Great story. One of the best of the dividend paying entities. They are not afraid to do acquisitions to fortify their drilling inventory and underpin their cash flow. What really stands out in his mind is the “all in payout ratio”. The combination of their dividend plus their capital spending, is conservatively a low 100%, which not a lot of dividend payers can claim.

This has just switched over to a dividend model so he expects there will be a lot more money coming in.

Did a great job of managing the business. Delivered everything they said they would. Kept expectations moderate. This is an energy producer that is not really targeting any significant growth. If you are not going to get any cash flow or production growth, and you are only getting a 5% dividend, is that enough of a return at this current price to take on the operating risks of an oil/gas company? He would probably be backing away.

(A Top Pick Jan 9/13. Up 45.07%.) Feels the stock could approach $13-$14 this year plus the 5.3% dividend. Have just begun “extended reach horizontal drilling”, which is drilling just a little further than what they used to. Increases productivity and a huge, huge return on investment.

(A Top Pick Aug 9/13. Up 11.98%.) Made very good acquisitions that they are now exploiting. Very impressed on how they have executed on their dividend model. 5% dividend, which he expects will be growing at about 10%.

(A Top Pick Nov 29/12. Up 52.83%.) Sold his holdings as he was a little concerned that the execution going forward was a little too priced into the name. Good company and have done a fabulous job of acquiring other companies and building out a good concentrated asset base. Light oil producer and he is now looking towards heavy oil and natural gas producers.

It has stalled out. Issue is the going to market to finance acquisitions. Well managed and he likes their commodity focus, but sentiment has changed because of equity issues.

(A Top Pick Sept 11/12. Up 83.21%.) Took a little bit off the table, but continues to trade around it. A core position. Strong management.

(Market Call Minute.) Have done a good job and paying a good dividend. Getting big and will start becoming more of a problem.

Good management. Strong production growth. Made a lot of acquisitions recently. Financed these through raising equities, which sometimes slows down the growth of the equity but in this case it hasn’t. Payout ratio is strong. Yield is strong. The risk with this is the energy sector. Oil has rolled over a little bit recently. With the Iran nuclear agreement in place, maybe people expect OPEC production to come on. Feels this one is a winner in the sector. 4.9% dividend yield.

(Top Pick Oct 9/12, Up 59.74%) Continues to be a core holding, healthy dividend. Buying companies on the cheap. Continue to get oil out of the ground from these companies. Down right now because of oil but thinks it will come back.

This has been moving in a nice uptrend and there is no sign of it breaking down through. It is now touching the trend line, which is an ideal place to Buy a stock. 5.2% dividend yield.

Thinks it will continue to do well. They will get multiple expansion as people get comfortable with their execution. They should be generating free cash flow shortly. Conservative balance sheet. Every employee in the company has to own stock. Differentials are not good for Canadian companies. Keystone is becoming less and less of an issue as we do more and more oil by rail.