Trilogy Energy Corp (TET-T)

Hasn’t owned for some time, and it has a lot to do with the balance sheet. A little bit more debt than he is comfortable with. They have Montney light oil, as well as a pretty good land position in the emerging Duvernay Shale. The problem with the shale play is that it takes a lot of capital. Wouldn’t be comfortable with their heavy balance sheet.

Buying at $4 is a good place to wait out the economy. Be cautious there is a lot of volatility.

Built a really, really enviable position in the Duvernay shale. A couple of years ago they made a really exciting Montney oil pool discovery. Since then the production from the Montney oil pool has been disappointing. Results from the Duvernay have been encouraging, but they have been trying to make it more economic. They have extremely limited financial flexibility. Production is falling because they are not generating enough cash flow to maintain flat production. It is tough to get excited about this one.

It has been a laggard, only 11-12% year to date. Likes the company because of modest debt. Huge exposure to emerging Duverney play.

It has been a decent performer. Almost hit guidance in Q1 and there are rumours they will hit guidance for Q2. Struggles with the fact that they are trading at $14,000 per acre, which is kind of approaching fair value. But well results continue to get better and better. He doesn’t see a huge home run unless taken out.

(Market Call Minute) Good Nat Gas leverage.

Could very well be a takeover target. Have a very large land spread in the Duvernay which is being drilled by the likes of Chevron and Shell. Just came out with stellar results last week. Has had a decent run. If there was a joint venture or a corporate sale, you could see $35 but it comes down to the selling motivation of a family that has a controlling stake in it. There will be more drilling results as the year progresses and the stock may go up on drilling results. Very much a catalyst driven stock.

(Market Call Minute.) This and Athabasca (ATH-T) are the 2 best ways to play Duvernay shale. Thinks you will get pretty exciting well results later this month and the stock could appreciate to $30.

He holds it indirectly. Dip in November was a bit of a miss in third quarter production and was an opportunity.

Massive resource base, natural gas liquids, focused in the deep basin of Alberta. Stock has pulled back recently and she is thinking about getting into it. Still an expensive stock but the potential is quite huge. Doesn’t think they have any plans to pay dividends.

Doesn’t see it as a takeover candidate. Very attractive name. The Duvernay and Montney properties look really attractive. Had a few infrastructure issues in the past, but those are behind it. Expects it will go on a nice run.

Likes this name. Big in the Duvernay lands in the deep basin of Alberta. Recently raised a couple of hundred million. Producing over 20,000 barrels per day of oil and gas. Because of the hot Duvernay, he thinks they are in the right spot with the right pockets. Can see this in the mid-$30s in 12 months.

Sold his holdings at around $30. Stock is weak on concerns Q3 is going to be weak. Have been guiding for a level of production ahead of where they will be coming in. If it drops another dollar or so, he thinks he will re-add to his holdings.

Sold his holdings recently as he felt the valuations were getting a little lofty. Essentially a Duvernay play with a Montney pool. Struggling a little too hard in some of their guidance for several quarters. Prefers others. If you are really attracted to the Duvernay you should be buying Athabasca (ATH-T) hands down.

(Market Call Minute.) Everybody owns this, not for the execution of Montney oil, but the inevitable takeout of the Duvernay acreage.