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Oil is down today based on weak US job numbers, Chinese trade data, and the announcement of the Norwegian State Fund selling a large portion of energy investments. This contributes to negative sentiment. We are in a market still where people are looking to not invest in the sector. Oil is up 25% YTD (excluding today) and yet some stocks are still down YTD. This has been a challenging sector for too long. Companies need to start doing significant share buybacks. The valuations are the lowest he has ever seen, they are insane.

Is a light and medium oil producer. This was a $15 stock 5 years ago. It is very cheap. Their dividend is very sustainable at $57-60 oil values. It is undervalued but there may be other opportunities elsewhere. It is an example of how the small cap companies are challenged in Canada. You probably want to invest where the money is going to go first which is not this name.

MEG was down on release of Q4 results. It gives exposure to heavy oil in Alberta. They can keep production cap and generate $527M in free cashflow based on $60 oil next year. If they chose to buyback stock, they could purchase 36% of their shares outstanding in 1 year. They are focusing on delevering the company. They can service their current debt and thinks they may be better off to buyback shares. Extremely undervalued.

This is a light medium oil producer. Given the market cap and leverage, he prefers others with a better balance sheet. Would recommend Torque Oil & Gas instead.

It trades at a higher premium than some of its peers. You do get some foreign exposure with this. Can get higher returns with other names and slightly better balance sheets.

If you believe in $60 oil or higher, this offers the highest leverage of any name. If you believe in $55 or lower, you do not want to own this. This company is very sensitive to oil price and oil differential. Negative cash flow at $55 oil and positive cash flow at $60 oil. If Line 3 does come on next year, and oil by rail ramps up, and if get positive resolution to Keystone or trans mountain, this could be a double or triple.

He is challenged with natural gas in general in North America. There is a tonne of low cost supply. There are other names he would strongly prefer. He would not have exposure to Canadian nat gas stocks now.

(A Top Pick Mar 15/18, Down 2%) It was acquired by Baytex. Baytex remains his largest holding. It is extremely undervalued. They beat on Q4 and expect Q1 to be a beat. It is at a 24% free cash flow yield. No issues with balance sheet.

Should I buy Suncor now until the market turns and then buy a smaller cap with more torque? Do you want to own large cap integrated or mid cap? If he can buy names now at 25-30% free cash flows, he is willing to take on a little more volatility. If you are not invested when that turn happens, you might miss the opportunity because they likely could gap up 10% in a few day. He would be more in the midcaps than where everyone else is hiding such as in Suncor.

This is in the small mid cap space. They are geographically diverse and this is a concern. At $60 oil, the dividend is absolutely safe. They are trading at 87% of the wells that are on stream today. So everything else you are getting for free. Very undervalued.

Their asset write down was meaningless. Their reserves did not change which is what he cares about. They will generate $400M free cashflow. The stock is trading below their blowdown value. They are doing the right thing by slowing down the drilling and buying back stock. Management are doing the right thing.

Their debt is too high and lack the financial flexibility that others have. He sees other opportunities that do not have this balance sheet issue.

He is extremely active in trading in his fund. He may recommend a stock today, but get out of it next month because of situations. They put out a horrible Q4. Their entry in the US was horrific timing. He is not comfortable with this name anymore.

This is not a bad name. He sees risk on the asset disposition. The list of buyers for Canadian oil sand properties is not that extensive. If you want US exposure he would go elsewhere.

Gives good exposure to the Permian with some Balkan. Growing by 22% this year. About a year out from buying back stock or dividends. There is 100% upside to this name with a recovering oil price. Has good exposure to light oil. Yield = 0.53% (Analysts’ price target is $149.00)