Bonterra Energy Corp (BNE-T)

She likes the company and the equipment. Debt levels are higher than what she is comfortable with. She is going to wait until they settle it down before putting them in their model portfolio.

This hasn’t acted well. It’s like a lot of energy stocks, but this is still down 50% for the year. Got caught with a little “worse than average” balance sheet, which has been a kiss of death in the stock market. With the combination of a really good balance sheet, very low costs and drilling prospects, you are still down, but not very much. It will take a while. It’s one of those companies that needs $60 oil to be better. If you think that is not going to happen, then he would switch to something else where you would be better protected.

This has always been tricky, because it is fairly closely held, and trading liquidity is pretty crummy. It is typically Canadian dividend funds that buy it and hold it. They found themselves in a position where they had taken on too much debt, and made a mistake of not hedging it off. Have high quality assets. Due to its lack of liquidity, he has been trading at a pretty healthy premium to others.

A small exploration stock. It appears the drilling is becoming predictive. It is rare we see an exploration play attractively priced in Canada. He seldom recommends exploration stocks in Canada. This management team has been successful in the past in the same terrain they are exploring now. (Analysts’ target: $23.25). (One of our faithful viewers has pointed out that BNN may have misinterpreted Rick's choice, and these comments might have been intended for Bonterra Resources (BTR-X) instead. )

Has a nice 4.9% dividend that is sustainable. They have done really well with costs. The story has free cash flow on current oil prices, which is going to help them pay off debt, which has been a little too high. Free cash flow yield for this year and next is much higher than it was in 2014 when oil prices averaged $94. This has a great history of ROC.

It looks like it is making a bit of a recovery. The downtrend has been broken and consolidation has been taken out. Not a bad looking profile.

If you like oil and you like good assets, this is the way to go. They have a really great asset base, but the technical team is really doing a good job in proving up the asset base and getting excellent results on their drilling at very low costs. There is a lot of torque to the upside. Have more debt than she is comfortable with, but because of the quality of the management team and their technical expertise, this is a good leveraged way to play oil. Dividend yield of 4.34%.

(Market Call Minute) He has been slowly letting some stock go.

Has been disproportionately hurt by what has been going on with oil prices and with their debt. Debt is a little high, but that was because of an acquisition, not because of over drilling. The acquisition was excellent quality and really added to their inventory in the Cardium. Very reasonable valuation. Dividend yield of 8.1%, which she thinks is safe for now. Payout ratio is around 100%, which is great.

A very interesting company. It has a large swing factor with oil prices because it is focused in just one area. The Cardium area in Alberta is probably the 1^st place for horizontal drilling and fracing technology allowing them to rediscover just how big the potential of that asset is. This company specializes in this. Management has a large ownership and they watch their costs extraordinarily well. This company is designed to be sustainable.

It is a conservative producer. They did a good job over the long term. All dividends are at risk, but this one should participate in a recovery. They already cut their dividend.