TOP PICK
Most of their CapX is behind them. Have unhedged exposure to higher oil prices. Management announced costs per barrel are going to be higher. When they report July 27 should be a really good entry point.
TOP PICK
About 68% oil. Very solid dividend. Management owns a lot of the stock. Low payout ratio. Good balance sheet.
TOP PICK
80% natural gas. This is a name to own for exposure to natural gas. Have done a good job reducing costs.
PAST TOP PICK
(A Top Pick Nov 13/08. Up 24.58%.) Successful in bringing their Horizon project online. A lot of gas exposure has been holding it back. Still a Buy.
PAST TOP PICK
(A Top Pick Nov 13/08. Up 44.66%.) Just converted to a corporation but with no change in dividend. Should be a core name in your portfolio but wait for a pullback before Buying.
PAST TOP PICK
(A Top Pick Nov 13/08. Down 7.22%.) About 50% gas. One of the leading players in the Montney shale in northeast BC. Good pipeline of drilling opportunities. Buy.
COMMENT
Natural Gas: With the drop in prices, drilling activity has fallen from about 2000 rigs in September to under 1000 now. Monthly production has started to decline and will accelerate. Expects any surplus will have dissipated by the end of this year and there will be a doubling of prices from now. Looking for $6 by year end and averaging $7 in 2010.
COMMENT
Oil: Looking for oil to reach $80-$85 by the end of the year. Doesn't think that equity prices are discounting higher oil prices.
WEAK BUY
Has been very acquisitive over the last few years and are still having some challenges integrating. Very large company to be able to make any growth through a specific play. If looking to participate in higher oil/gas prices, there are better names for greater leverage. 12.5% yield could possibly be cut.
STRONG BUY
One of the top management teams. Recently acquired $700 million of primarily gas assets from Encana (ECA-T), which will really propel them into a new direction.
COMMENT
Company Consolidations: Expecting a great step up in the coming years as oil production will be declining and this is one of the few places in the world where companies can acquire new assets and grow production. Anticipates that larger global companies will buy out most of the operators in Canada in the next 5 years or so.
STRONG BUY
Just reported and showed higher costs in production. With the acquisition of PetroCanada (PCA-T) and their oil sands assets and the unused upgrading capacity this is going to be a great place to be in the long-term.
PARTIAL BUY
Gas weighted. Well run. Short reserve life is a bit of an issue. Well capitalized. 13.9% distribution is in good shape. Has been slowly adding this one to his portfolio.
BUY
Heavy oil weighted. Differentials have coming in nicely over the last little while and are close to 15%-20%.
BUY
In the Bakken play in Saskatchewan. This area could see some consolidations. Good leverage to oil.