EOG Resources Inc (EOG-N)

It will be a complicated report today. Prices in Q4 declined which will effect free cash flow. He expects EOG to reduce capex full year, which the street night like.

He likes rising natural gas prices and more share buybacks. This has outperformed the energy sector by 10% in the past 52 weeks.

A US name to look at if you don't want to deal with the geopolitical or the heavy-oil takeaway capacity. Those constraints wouldn't affect this non-Canadian name. Probably the lowest-cost operator in the US, and one of the lowest globally. Does well operating in the counter-cyclical model.

Sharp selloff along with the price of oil, and it's just to do with the economic sensitivity of the commodity. Yield is 3.2%.

He's overweight energy, but supply/demand hasn't rewarded him yet. It reported a beat, but shares are up only 1% today and he's disappointed.

Great management. He's been watching it.

A low-cost oil producer that can support their dividend at much-lower oil prices.

The unique thing is their cost profile -- it is very low compared to peers. The trouble for CVE is getting their production out of Canada. That is why he favours pipelines over producers. There is too much commodity price risk, so he would not be a buyer. You might want to consider EOG instead as they do not have pipeline constraints to worry about.

Energy is facing its toughest times. If you are bottom feeding, he might still avoid this sector. The companies that will get through the best will be the ones with their costs under control. CPG is a lower cost producer, but he would prefer someone like EOG -- the lowest cost shale producer. He thinks CPG may require more equity or debt to grow going forward.