Whitecap Resources (WCP.TO)

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.

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.