COMMENT
Concerned about gas prices. Had a slight rebound in the summertime reflecting the 2 first time withdrawals during the summer months to use for cooling. Have very full inventories, 3 months of a shoulder season between winter and summer when temperatures are comfortable, so gas consumption will be very low. Will run out of storage space, and when that happens, there will be some softness in gas prices. This will be a buying opportunity and, over the long run, he is very bullish on gas.
TOP PICK
2nd quarter results were above expectations. About 83% natural gas, so buy on gas weakness. They owned 16.4% of Storm Ventures International which they will eventually dividend out to shareholders. Relatively cheap valuation.
TOP PICK
An excellent record of growth. More expensive than its peers. You have to pay for its management and its growth. 80% natural gas, so buy on softness in gas prices.
TOP PICK
This is a defensive manoeuvre over the next little while. This is a service company that services rigs which continues even if the times get slower. Also involved in oilfield waste treatment that is more oil than natural gas so hinges more on the oil side of the equation. Payout is only about 50%. Excellent growth rate.
DON'T BUY
Possibly a takeover target. Last couple of quarters have been disappointing. Production has declined more than expected. Relatively high debt. He owns a small amount.
BUY
Announcing some good results out of Argentina but these assets are not as valuable as their recent major find in the North Sea. They have a number of things they have to do to get it on production, which will be at 2/3 year time process.
BUY
One of the largest royalty trusts. Current production is about 86 thousand BOE’s. Relatively balanced between gas and oil. Has some interesting discoveries in Montana. Likes this one a lot.
BUY ON WEAKNESS
Anything below $55 would be good value. Gas weighted.
BUY ON WEAKNESS
Doesn't get a lot of attention and it may be because Royal Dutch owns 73%. Likes their Athabascan project. Good production and very expandable and they are going to spend more capital there. Buy a little on weakness and tuck it away.
BUY
This fund will do as heavy oil does. Well-run company. He is moving away from heavy oil, but this one is doing well and is reflected in its numbers.
WEAK BUY
A higher risk/high reward situation. A large gas field that is located in Hungary. The basic engineering looks really interesting and really good. It’s tight gas that is very hard to get out of the ground and will require some very expensive well drilling. The stock has gotten expensive.
BUY
Have a very interesting exploration play in the Bakken area, which they have done very well with. There is more capital appreciation potential in it. Good company.
DON'T BUY
Canada's largest integrated. A lot of its production comes out of the Cold Lake area. Has a number of interesting assets, 25% of Syncrude, the dominating player in the McKenzie Delta area and will be the primary driver behind the McKenzie Valley pipeline. The stock has become expensive.
DON'T BUY
Has slowly been going down as coal prices have been coming off, mainly because of competition from Australia.
BUY
One of his favourites. Made a discovery of some deep reserves in the West Pemina area. They control a lot of the land in that area. Have a large number of drilling locations. The wells are producing big volumes. High growth potential. Expensive, but you have to pay for the growth.