Top Independents Operators Oil Stocks to Buy in 2019

(A Top Pick Oct 01/20, Up 32.9%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with SU is advancing nicely. We recommend trailing the stop up to $17.75 (currently at $13.50). This would all but guarantee a minimum return over 9%.

We have been going through a unique time when the small cap players outperform the large caps. You can own large caps with the likelihood of upside fairly large. At $50 oil, they are trading at a 16% free cashflow yield and 23% at $60. (Analysts’ price target is $33.77)

An oil producer in Colombia. They have shut-in volumes and are not spending money, but rather are paying down debt. Expect a production cut in the next two quarter and only rising in Q4. Buy this below 40 cents.

(A Top Pick Dec 19/19, Down 52%) It continues to offer meaningful leverage for rising oil prices. They hedged off 50% of their oil exposure next year. He does not own this for this reason.

HSE-T + CVE-T: Stay after the merger? He does not own either one. He understands the merger makes sense. There are a lot of cost savings that can be found. He prefers CNQ-T, PXT-T and one of his Top Picks today. He prefers these to HSE-T. If the sector bounces back you could get an…

TOU is the cream of the crop. They focus on natural gas, which has lagged, but will catch up. The balance sheet outshines its peers. Their cash can pick up more companies. Managers have been buying shares. Lots of upside. (Analysts’ price target is $26.97)

It would not be a name he would own. The number of market participants are very small. There is a certain market-cap threshold for market relevance. There is a pressure for MnA. It has higher cost, medium heavy oil company. They suspended dividends.

(A Top Pick Dec 10/19, Down 40%) Of course, he didn't foresee oil prices going negative (in April). CPG is not in a bad position here. North of $40/barrel, they can generate decent cash flow. It's decent.

(A Top Pick Aug 27/20, Down 12%)Stockchase Research Editor: Michael O'Reilly We are choosing to remain disciplined and stick to our stop-loss at $35 and look for better alternatives. Now that key technical support has been breached it could try to retest lows near $25.

Oil price advances is going to help the advances of oil stocks. Chinese economy is likely to grow at an 8/8.5% for the next decade on a compound basis. Good opportunities.

The best valuation opportunities are in Canada, he thinks. He would sell WPX for the tax loss and buy Parsley instead, who has better exposure to Canada.

Energy stocks look quite attractive. There may be a bull market for energy. What caused the 2020 sell-off was triggered by the sell off in oil. It was then recognized simultaneously with covid. Without travel and work from home, energy demand fell dramatically. The valuation is quite cheap. He prefers large integrated companies like Shell…

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…

This all depends on what oil prices are going to do. $50 oil kind of keeps them going, but the costs are much higher than they are getting at the end of the day.

(A Top Pick Aug 11/20, Down 9.3%)Stochchase Research Editor: Michael O'Reilly We have recommended to stop out of EPD as it has violated the $16.50 threshold we recommended. We see technical indications that the stock could retrace to $12. We will look for better opportunities elsewhere.

(A Top Pick April 2/14. Down 18.73%.) His job it is to watch for change and as he sees change, be able to reposition portfolios as required. Last summer, the US$ started to blast off, which happened at the same time that energy prices started to roll over. He got stopped out of virtually all…

Very bullish outlook on gas and this will give you great exposure to gas. Well run and a tremendous track record in production growth and reserve growth. Both shale gas and conventional gas exposure. Potential take-out candidate.

(A Top Pick April 18/16. Down 8.31%.) He sold this and got about 5.5% from it.

Stockchase Research Editor: Michael O'Reilly As COVID-19 vaccines roll out around the world, there is the expectation that economies will begin turning back up and energy demand will rise accordingly. DVN has managed to keep debt under control (with none due until after 2025), see positive cash flow over the past 12 months, and devise…

Energy company - oil and gas producer. He is looking for companies that are good quality, selling off and with volume picking up as it turns, which this is. He is already making money on it. Stop is $47.

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 March 10/14, Down 14.12%) They are a lower cost operator. He sold this a couple of months after recommending it. Their challenge has been that their industry has been wildly successful in getting production growth and now there is a severe shortage of pipelines in the region so the price they sell for…

A name in transition. Used to be viewed as a leveraged way to play oil because they had financial leverage and were in the US Bakken play, which is still exceptional economics in a lot of their acreage. In the fall, they did a massively diluted share offering to purchase acreage in the Permian, paying…

Probably a name he would hold or avoid, simply because it is so highly levered. A good company. It has some good assets. If you see a sustained bull market in energy, this could be fairly attractive. However he doesn’t think we are going to have a bull market in energy right now, so this…

A tertiary play in that they do oil recovery after-the-fact for oilfields. Primarily oil driven.

Tremendously high profile in the US and has held up relatively better than our Canadian oil stocks. Good properties and good reserve life. Good price. Really a question of what you think is going to happen on commodity prices.