Whitecap Resources (WCP.TO)

(A Top Pick March 29/12. Up 2.29%.) Should be able to achieve some high single digit growth on the asset side in addition to receiving the 6.70% dividend. Good blend of growth and income. Assets in the Viking and Cardium pay back in 1-1.5 years. Modest debt. Adopted a three-year hedging program. 20%-29% upside is fairly achievable. An overhang in the near-term is an asset sale out of Barrick, which has one asset that would be a perfect fit for them, but would require financing.

One of the better dividend stocks in the sector. 1.8% dividend. 4^th quarter production was at a record. As long as production continues to increase and with the dividend and growth it is one of the better plays in the sector.

Has the most sustainable dividend model in Canada. Yield is 6. 47 %. From strictly cash flow, not using any debt, they can pay the yield and grow production by about 5%. Have a reserve life of over 14 years. Clean balance sheet at 1X debt to cash flow. Trading around 5.5X this year’s cash flow and could easily move up to 6X.

(Top Pick Oct 9/12, Up 19.18%)

(Market Call Minute.) Using a 7% valuation, it is pretty much like Crescent Point (CPG-T).

Nice run since mid 2012. There is another 10% before resistance. 6.24% yield.

Recent conversion to a dividend company and there could be room to increase the dividend later this year. Their model firmly sustains a 5% growth rate in the yield is now about 6.8%. This is the most sustainable dividend model in Canada by his math. Trades at a 5.5 multiple.

Scheduled to pay a dividend of $.60 per year (about an 8% yield). In the Pembina/Cardium oil area as well as the Peace River Arch of Valhalla with Montney oil. Producing about 16,000 barrels per day. Have been growing by acquisition and the drill bit. Excellent management. Sees the dividend being sustained both in the mid-and long-term.

(Market Call Minute.) He has a target of $12 on this one. Transitioning into a much bigger company.

Newly dividend paying light oil producer in Western Canada. They have a sub-100% payout ratio. Very good hedging program.

Much talked about in terms of dividend potential. Efficiencies are being improved, wells coming on better than expected and decline weight is being brought down and net backs are very good because oil weighting is very high. Have said they will be paying a dividend and he thinks it is imminent. He thinks it will be very sustainable and yet the company can continue to grow at 7%.

Oil weighted exploration and production company in Western Canada. Strong player in the Viking area in west central Saskatchewan. Producing about 17,000 barrels per day and 71% of it is oil. Forecasting about 30,000 barrels per day in the next 4 years. Growing by both drill bit and acquisitions. Once they have this steady stream production, they can be a dividend payer.

70% light oil producer. A very sustainable business model for the ability to pay a dividend. Anticipated in the next 3 months. Because of capital efficiencies and decline rates in hedging, they are building the ability to pay a dividend very sustainable at $90 oil. Target multiple for him would be 6.5X for an $11 stock.

Oil focused. Getting to be quite large. Made some acquisitions. Focused in a few core areas. Lots of oil. Adding some water flood again trying to take advantage of long life oil reserves. When they are comfortable with that they will probably give some of that money back to investors.

Pretty good name. Good earnings growth. A lot of potential upside. Most analysts are bullish on this name.