Gas weighted and focused in Canada, mainly Alberta. Exposure to the Montne. 18%-19% owned by management. Low cost producer and relatively low debt. Well positioned to withstand lower gas prices but huge leverage to higher gas prices.
Gas exposure but some good liquid exposure as well. Because of managements views on gas prices have done very little drilling, but are starting to drill again.
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.
Natural Gas. Prices are low and anticipated to stay low by most observers because of US overproduction in shale gas. Expects low prices will persist for most of 2011 with a little recovery at the end of 2011. Bullish on gas prices long but couldn’t say when. Have 20 years at most counting proof reserves. Once people start to realize it is a finite resource, there will be a price recovery.
Natural Gas. He is very much long. Expects market to become aware of limited gas in the latter part of 2011. Prices will start picking up. His portfolios are marginally more gas weighted versus oil and that is likely to increase going in to 2011.
Oil. Expected to return to higher prices. No supply problem yet but there is a production problem. World doesn’t seem to be able to produce more than 90 million barrels a day. Demand is growing globally and projections indicate a scarcity in North America in the next couple of years.
Have improved reserve replacement considerably in the last year or so and are claiming above 100%, which is pretty good. Well positioned for Liquefied Natural Gas LNG with some giant projects off the shore of northwestern Australia. Also some tremendous projects in the deep water gulf of Mexico.
Canadian but with operations exclusively in South America, primarily Colombia but expanding into Peru, Argentina and Brazil. 100% oil, no debt and $300 million in cash.
Looking at big integrateds, there are some good quality plays in Canada so he doesn’t focus on this. Has so many issues that may impact so prefers Canadian that he can concentrate on.
Going from a $2 dividend to an $0.80 dividend so is being recycled out of yield oriented hands to more value oriented, which is pretty much in line with a composite on the TSX. Loves the asset.
Converting to a Corp but also changing the business by selling longer life oil sands play and redeploying capital into the Marcellus. Has given him some concern. Will continue to pay out a high level of income