Yangarra Resources (YGR.TO)

If you look at the small, mid-cap energy space, this team has done an amazing job. They've had some very successful wells and some great resource increases. Management has been doing a great job, both with the drill bit and on the service side.

(A Top Pick Feb 28’17, Up 81.27%) The top performing oil and gas company in North America this year. The CEO is more nimble that other CEOs. He has been able to keep their costs down.

In the last 4 years, this has gone from $.50 up to $4.50. Continues to put up very good numbers. They could do 7200 BOE's a day in Q4, and perhaps could exit at around 8000. Their cash flow could be $1 next year, so it still looks very cheap. (Analysts' price target is $5.63.)

For a small-cap Canadian oil stock, this has done phenomenally well. It’s one of the names that you always find an excuse not to own, and then kick yourself a couple of months later. One of the few oil names that is actually up this year. He would just stick this one aside, forget that you own, and look at it a couple of years from now.

(Top Pick Dec 20/16, Up 101%) Their net backs are about the largest in the industry. They have beaten guidance and all the analysts have moved their numbers up. They are the fastest growing small cap company. If we get a lift in oil prices it will go up even higher.

One of the 1^st ones to unlock a zone in the Cardium, and now the industry is following them. Their results have been getting better and better and better. Production per share has been very, very strong. This is one that can compete with the US names.

The company was producing 2900 BOE’s in December, which went to 4000 in February. They are now producing 6000. Even though the stock has gone up a ton, the valuation has remained the same because cash flow generation and production has gone up as much, if not more, than the valuation. In the last quarter, they recorded $.13 in cash flow, which is up 200%, versus last year. Probably going to do $.55 in cash flow this year, so it is still not expensive. (Analysts’ price target is $4.)

A small Alberta producer that was producing around 2900 BOE’s at the end of last year, and are now producing about 4500. They have a couple of well results that should be coming out over the next couple of months or so. They’ll be giving an update on March 15. Probably the highest growth small-cap oil/gas play in Canada with very high netbacks. This could become a 9000-10,000 BOE’s a day producer over the next year or so. Extremely good growth. A possible takeover target. (Analysts’ price target is $3.50.)

It is a very small market cap. He saw recent results from a well that were very good. Other wells being drilled now could have the same test rate as the first. He thinks they will blow through their numbers even if oil prices stay where they are. They have a reserve report coming out in February. He is one of the largest holders of this stock and has held it for a long time. The increase in cash flow will catapult this one much higher. (Analysts’ Target: $1.73).

(A Top Pick Feb 23/15. Down 64.75%.) Just came out with an operations update. They were producing about 2600 BOE’s, their netbacks are fairly strong and they have 35%-40% production hedged this year at $75-$80. Probably doing better than most, it’s just that this is a very tiny market cap and nobody’s really looking at these companies. Management is strongly invested in this.

Has been hit badly, but is a baby being thrown out with the bath water. Will produce $0.60 in cash flow because they are hedged. Low debt to equity on the balance sheet.

Likes the story. When they did financing he was the lead order. Over the next couple of years you will see production growth. He has been adding to his position.

Company is at a very high rate of growth because of specializing in some land in the Cardium. There is also another area in the Duvernay where they had some lands that are of high option value.

Recently did a financing just before the market correction. He bought some recently. Sees visibility for a $1.50 share price, maybe $1.75 if we get really bullish. Likes what they are doing.

Have done a very good job in terms of growing production. Went from 1900 BOEs to 2200 and, this year, have got to 3400 per day. Feels they are going to be higher than that and next year will probably be 4000. Cash flows have gone from $0.12 to $0.19 and are expected to do $0.30-$0.31 this year. Trading at a fairly low multiple of about 4X cash flow. Costs per well have gone down dramatically, about 40%, since 2011. Good operators. Have some interesting land positions between Sinopec (SHI-N) and Vermilion (VET-T) who are drilling up some of the prospects up right now. Expects there will be some results by the summer. If results come through, analysts have been throwing around that it could be up to $1 per share for this company.