Birchcliff Energy Ltd. (BIR-T)

The oil and gas sector has been under-invested for a long time so there is good upside in the long term. It has a good balance sheet, nice dividend, good revenue and value. The downside is limited.

Very cheap. Huge upside potential. CEO says he'll cut capex before he'll cut the dividend. Lovely yield of 9.26%.

Not a great company to own at current share price.
Good time to sell shares.
Currently not covering dividend with strip price
Will have to take on debt.
Better names to own in sector.

Makes sense. MEG is a pure oil play with long-life reserves, and BIR is more levered to natural gas. You're adding a new level of risk to switch back and forth. The risk is you do it at the wrong time and end up losing. The volatility is beautiful on the upside, but kills you on the downside. Instead, buy ARX with decent nat gas, and a light oil play since they bought Seven Generations, and production growth. Then you don't have to make the decisions about moving back and forth. 

Gas weighted company.
Long term is a good investment, but will be volatile in the short time.
LNG in Canada starting soon.
9% dividend yield with current share price.
Finally have clean balance sheet (lowered debt).

LNG Canada is bringing a significant export opportunity for all Canadian nat gas companies towards the end of 2025. This will be transformational. He likes all Canadian nat gas producers on a volume basis. His preference is ARX, as it's diversified with undeveloped land. Prefers PEY to BIR; management is stronger, though its dividend will be subject to commodity prices, can grow production long-term.