Continental Resources (CLR-N)

This was the poster child for the US growth machine. But now they are in one of the worst places. Cut cap X program and will likely have to cut it again. Prefers Canadian oil stocks. Thinks there will still be revisions to CLR-N’s cash flow.

(Top Pick Jun 20/13, Up 73.88%) He sold as a rotation out of US names. Opportunity remains in Canada with other stocks like this one.

There are some very, very good names in the US. Some of their basins are a lower very strong per share growth metrics. This company has the highest per share growth rate of any MidCap US oil stock. This is because of their acreage and a sweet spot they have in the Bakken field. They have decades of running room. Trading at around 6.3-6.4 times cash flow.

34% of his fund is now US. Valuations generally are similar if not slightly better than Canadian names but the growth rates are higher. This is the largest producer and largest acreage holder in the US Bakken play. Growing production by about 43% this year and 30% next year and trading at around 5.7X next year’s enterprise value to cash flow.