Peyto Exploration & Develop. (PEY-T)

Buying shares recently.
Strong company with good dividend.
Expecting higher natural gas prices.
Hedging allows for safety on dividend.
Excellent management team.

If we stay at the current gas price for the next year, dividend is not sustainable. PEY has a good hedge position, and they're actually getting good gas pricing, so it has a buffer. He owns it in an income fund, making about 18% after selling calls. Not in his main fund, as all he wants to own is Canadian heavy oil.

Yields 11.6%. Not for the feint of heart. A dryer gas player. Medium-term this looks good, and it's a good way to play western Canadian gas. Buy a partial position, but expect some rough days short-term as you collect that 11.6%.

Calgary based oil & gas company.
Most of production is natural gas.
Weak natural gas prices causing worries for investors.
Unsure of dividend sustainability. 
Prefers other natural gas names in sector. 

If you're willing to endure another year of miserable natural gas prices, it should be fine. He'd prefer to pay the premium for TOU and get the inventory depth, especially if you're sitting on a tax loss.

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. 

He thinks natural gas will be the energy of the future. He is not an energy expert. He has gone with Peyto. Consider taking small positions when there are big market down days. But they must be good companies that will survive. 7 out of 10 of these companies may go under. Think of them as call options.