TOP PICK
Very well managed. Good growth in British Columbia. Vulnerable to a decline in its distribution reflecting softer commodity prices. You could buy half now and the rest after any distribution cut. Great assets.
TOP PICK
(A Top Pick Sept 8/06. down 6.3%.) A very defensive trust. They clean up oil messes, clean out tanks, etc. Not dependent on the price of oil. Good growth record.
TOP PICK
Very good management team. Represents good value. They have the Horizons oil sands project that he thinks is very exciting and is well along. On the negative side, he is expecting the company to announce costs have gone up. 1/3 heavy oil, 1/3 natural gas and 1/3 light oil, which is a good commodity diversification. Undervalued.
PAST TOP PICK
(A Top Pick Sept 8/06. Down 4.5%.) Have been repurchasing shares and selling off some of their non-core assets. Very good value at this price.
PAST TOP PICK
(A Top Pick Sept 8/06. Up 3.1%.) Has some production coming on in the North Sea in the Buzzard field, which will have a huge impact on them.
BUY
A heavy oil producer in northern Alberta. Has a fairly nice heavy oil discovery. Growing production very dramatically. Spun off Petrolifera (PDP-T) which has some excellent production in Argentina.
WAIT
A very gas weighted trust. Expect its distribution will be reduced over the next little while because its payout ratio is quite high. Wait until this happens before buying.
DON'T BUY
Has gas properties in Algeria and Tunisia. Some of these have been disappointing. He is very cautious when it comes to oil companies with foreign assets.
WEAK BUY
It's about how $1.8 million market cap and doesn't have any production. Quite expensive. Biggest asset is in Hungary. Looks quite interesting, but is highly speculative. If they hit, it will be a huge home run. Very deep so there are production issues with it.
DON'T BUY
Just announced that they were going to revert back to a corporation. He feels this was their way of reducing their distributions. Have set up a dividend at a much lower rate and will use excess cash flow to pay down debt. Company suffered from high decline rates with a little too much debt.
BUY
Weighted to natural gas. Great management team with a great track record of growing production and reserves.
COMMENT
Currently drilling a well in Trinidad that looks interesting. Stock may react well on this and could be a good exit point. This company takes higher risks and can get higher rewards. More speculative.
BUY
Roughly 50/50 gas and oil, which is an advantage in giving diversification. Good value compared to its peers.
DON'T BUY
A lot of its assets are in the North Sea. Has had good capital appreciation. Likes it, but would be a little cautious at this time. In the same area, he prefers Bow Valley Energy (BVX-T).
BUY
Has a lot of assets in the North Sea. Expect production will be increased fairly dramatically as over the next 6 months.