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COMMENT
He would not own SGY-T. There are other companies that hold better assets and purchase them at better levels. He would choose TOG-T if you are looking for a sustainable yield instead.
oil / gas
DON'T BUY
He thinks their financial flexibility is so constrained that he sees better choices out there. Why would he take on that added risk?
oil / gas
DON'T BUY
They have SE Sask production. He likes the management team and there are good assets. The dividend is sustainable. He does not own it because he prefers US light oil producers. The growth rates are double in the Permian and inventory depth is twice that of Canada. He is only paying a one point premium to buy in the US. He likes Canadian heavy oil instead.
oil / gas
BUY
He bought it two weeks ago. They have improved their reserve life index from 4 to 11 years. Their netbacks are expected to grow 19% this year. They will likely buy back 10% of their shares next year. There is Colombian exposure, but for 4% weight in his portfolio he is happy to take the risk.
oil / gas
PAST TOP PICK
(A Top Pick Feb 09/18, Down 57%) He sold them out at $3.50 back in April or May last year. Oil was at $60 and cash flow was growing. He liked this pressure pumper then. But now natural gas prices have gone to zero and condensate discounts have expanded. The whole service sector was decimated.
oil / gas field services
PAST TOP PICK
(A Top Pick Feb 09/18, Down 28%) This was an IPO of the US assets of Trican. A US pressure pumper company that is still under stress. Investors have to remember this sector has to compete with others with the same rate of return metrics. This company will again under spend their budget -- not fantastic.
Energy
PAST TOP PICK
(A Top Pick Feb 09/18, Down 80%) He sold at over $10. They did a horrifically timed US acquisition. He also didn't like the predatory cutting of rates to steal two Trican customers. He will never invest in them again.
Energy