Swanzy Quarshie

Markets. There is a lot of negative sentiment in oil. The lack of visibility of what OPEC has done and how it has fed into inventories is what is causing nervousness out there. She is confident that OPEC’s actions will work. With production increasing in the US, it is being balanced by cuts that OPEC has made. We won’t get a lot of growth in oil in the US next year if the price does not increase. She looks for companies that have the best growth and the best plays. There is a valuation gap between the US and Canada that makes Canada much more attractive. A border tax into the US will increase the price of oil in the US and thereby encourage production growth there.

A good company to be invested in at this time. She likes the prospects in the $60 plus range. They have a lot of torque to the upside. They may do something with their cash on hand and that could be a catalyst. They have a pretty solid balance sheet.

A core name in her fund. The management team is exceptionally strong. They did a great job building a portfolio of quality assets in South Saskatchewan. Current weakness is an opportunity.

She likes it. Pay attention to free cash flow yield in integrated companies. Current projects will bring in some lumpy growth. She is looking for them to increase dividends and buy back shares. It ranks really well globally.

At current oil levels the dividend is safe. Their operating costs are about $20/barrel. With operating costs this high the impact is higher than with other players. She believes we are seeing a bottoming in oil prices and that there is a good fundamental picture, so thinks this company makes sense right now.

In the past it had some good attributes. Then their decline rates got way too high. They spent a lot of money on infrastructure and now are forced to sell some of it because debt has gotten too high. There are so many other names you can buy.

A royalty trust with excellent downside protection. Their production fell, but their balance sheet was very sound. She sees a lot of opportunity here. They recently had a dividend increase. It has lots of potential for upside.

An excellent quality company. They can keep increasing dividends as oil prices stabilize. They have a lot of free cash flow. We have seen some pretty significant increases in production, all internally funded. It has done nothing so it has lots of upside.

(Top Pick Feb 10/16, Up 11%) It had a great start. Unfortunately they chose to raise some equity and the stock went down. She still likes it a lot. It is a core name. She sees very good wealth creation ability. They have good netbacks. They have a good balance sheet. They are now seeing results from water flood in 6 months, down from a year. This is a game changer. She still sees a lot of upside in it.

(Top Pick Feb 10/16, Up 41%) She likes it because of the way it is changing and evolving. It is leaning more toward the infrastructure business. This is a very stable type business. She sees upside when oil prices come back.

(Top Pick Feb 10/16, Up 62%) A well run, great company that did not have to cut its dividend. You may see a dividend increase in the next year or so. They have free cash flow from almost all their business segments. It should be looked at as a dividend growth company and can be bought at these levels.

It is one that will probably continue to go up in a rising oil price environment. It still has to grow into itself. It is still outspending cash flow. She likes other opportunities right now. The Americans think this one is cheap, but compared to other Canadian companies it is not.

She does not see a takeover happening. It is an interesting company, having gone through quite a transformation, selling a lot of assets, and changing management team. Analysts are impressed with this new team. She believes they will cut costs and focus them in their core area. She sees funded growth for this company.

It has a bit too much debt. This has been one of the victims of the oil price turn as they had too much debt at the top. She likes management. They have a lot of torque to higher oil prices. Heavy oil is a better asset in Canada.

She does not tend to look at PE ratios in oil services companies. They have assets in New Guinea and Canada. They are looking at an LNG project. There may be some downside risk on contract negotiations. It is generally a well run business.