Whitecap Resources (WCP.TO)

Good value. Though he tilts toward nat gas, a good choice if you want an oil-levered name. A steal of a deal on VRN, with more benefits to be realized. Good management team. Lots of light oil. Good growth profile. Decent valuation.

Likes management. Now seeing tons of synergies from the deal with VRN. Reported last night -- production higher, cashflow very strong, capex lower. A name he's looking at. You can hold this for the dividend.

The sector of course is sensitive to commodity prices, and WCP is flat on the year. It is quite cheap at 9X earnings. The 7% dividend is attractive and payout ratio attractive in the 25% range. The balance sheet is OK, even after the giant VRN acquisition. Production rose 65% in the Q2. WCP plans to hedge 25% of production and has said its leverage does not prevent more buybacks. While the sector outlook is mixed, we would consider WCP one of the better names in the sector, certainly.
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Bottomed around $7, and now seeing higher highs and higher lows. In an uptrend. Above both rising 50-day and 200-day MA. Technically, looks fine. Lots of investors like this name. If you own, he'd hold. Seasonally, things get better from here.

His firm is more focused on the Clearwater. A name like TVE is performing a bit better in the market.

Acquisition of VRN a gamechanger in terms of building critical mass. Makes it the largest landholder in the Montney. Nice mix of stable, low-decline production that generates FCF to finance the high-growth gas assets. Ready to ramp up and scale up the business. Nice yield of somewhere just north of 6.5% (above average for peer group).

Over next 5 years should grow in range of 3-5% per annum. Tends to under-promise and over-deliver. Total return of ~10-12% is quite attractive.

Likes it. Trades at a reasonable 7.5x PE, and a good ROE while book value is at 1.6x. Pays a good +6% dividend.

It is one of their biggest holdings in one of their portfolios and they have owned it for a long time. It has grown by acquisitions and discoveries. The price has been relatively flat but it could be due to move. He also owns TVE, Spartan, etc. He likes the dividend - a company that consistently grows its dividend means it is more likely to outpace the market since it is focused on shareholder returns.

Light oil with a high decline rate (versus other types of oil). Good job with enhanced oil recovery to try to mitigate that decline rate. Good management team. Company expects $200M in synergies from the merger, which should be accretive over time. Dividend safe at these levels. Hold, but don't add at these prices.

A name to buy right now would be CNQ.

It has gone sideways and is dependent on oil and gas prices. It is focused on longer life strong free cash flow assets. Has strong management and good insider holdings. Monitor the high payout ratio and integration risks. There is a possible 28% upside and the potential for an attractive short term rally.

Stock's behaved pretty well given what's going on out there. Trading above all the moving averages. Would probably have it on his watchlist. Dividend looks safe. He'd wait for a catalyst in the energy sector before adding.

Long-term story for Western Canada is positive. Finally have infrastructure being built. Government and population seem to be more behind the sector. Short-term outlook is pretty cloudy, especially for oil and particularly as we head into the slower demand period of fall. 

Will take a while to digest VRN merger. Weakness for next 3-9 months. Over time, you'll do fine. Can hold for the dividend. For new $$, wait for a better entry point.

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We'll have to see what the merged company looks like on the other side. No strong opinion on it. Looking at it from an options perspective, companies going into deals like this can see their option premium disappear.

If you don't own it, you can look to buy it ~$10 out to October, and sell that $10 put cash-covered (so 54 cents below where it's trading now). This lets you collect about 20 cents. You'll generate 2% over 2 months if the stock stays here or goes higher, and if the stock goes down you'll be buying it.

There is a merger deal. The earnings report last week was very good. He owns it in the growth fund and likes what they're building. Has very long inventory base. It is good for both oil and gas and can hold their dividend at 7%.

He's totally out of oil producers, focusing more on pipelines (more volume-sensitive than price-sensitive). Purchase of Veren was exceptionally well timed, great asset at a great price. Lots of oil supply right now, concerns about demand, thinks oil will crack $60 again and maybe lower.

Trapped in no-man's land, just like many of the other oil stocks. In a swing-trading range; buy near the bottom, sell at the top. If there's a breakout and it seems as though it's staying, he'll actually add more. But if it starts to roll over, he sells. Might be a bit more upside, but don't pile in at this point because it's so close.