BP PLC (BP)

He would redeploy the capital into something else. The big internationals are all over the place and it is hard to analyze them. He would go with something closer to home where you get a better yield. We have great energy companies in Canada and he would buy the local ones.

They’ve turned the corner. Going forward he would call this a Hold as he would on Exxon, Chevron, etc. too. The big super majors are predominantly becoming gas companies. This company is struggling to be relevant again and really have to sell down a lot of their assets in order to meet their litigation issues.

(A Top Pick Jan 23/13. Up 12.59%.) Ultimately, the catalyst here is the settlement of the liabilities. The longer the government drags its feet, the more that management has the ability to just move forward and start the company towards a growth path. The liability is well provisioned. Still a Buy.

Valuation across the big cap space is quite low in general. Has been some concern as to where the price of oil will come because of the new sources of supply coming on. Also, we are getting more efficient in fuel usage. Thinks the group in general is reflecting some of this, but overall this is a pretty good bet.

Have some infrastructure problems with pipelines and offshore wells that he is not convinced have been fully addressed. Good reserves and good operator, but thinks there are better opportunities elsewhere. (See Top Picks.)

A lot of the legal problems are behind them. It is working its way through the system. Trading at a discount because of all of the issues. Dividend yield of almost 5%. Very cheap valuation. A world-class collection of global energy assets. Natural gas prices are much higher outside of North America. Feels that they are going to have earnings growth in the 10% plus range and into next year as well.

(A Top Pick Dec 20/12. Up 15.73%.) The story that is overhanging this company is the liability issue around the Gulf of Mexico oil spill. He understands that unless the US government can prove gross negligence, which is very difficult to do, the company is adequately provisioned from a liability point of view. Settled 3 lawsuits today and as the process continues, you will see the stock move higher on the back of higher dividends and share buybacks.

(Market Call Minute) $140 Billion market cap and $25 Billion in Gulf liabilities remain.

(A Top Pick Oct 15/12. Up 10.35%.). The catalyst for the stock is going to be the end of litigation with regards to the Gulf of Mexico story. Operations are improving. They are pruning their assets. Have their big Russian exposure now. Good story.

Doesn’t like. Integrated oils are tough to begin with but this one has its own issues. Prefers TOT-N. Thinks TOT does a very good job. Prefers service companies because of more predictable growth. Likes COSL. Also SCL-T.

The story on this is the liability surrounding the Gulf of Mexico oil spill. His understanding is that the liability has been adequately provisioned. The only upside to the liability claim would be that the US government would have to prove gross negligence, which is very difficult to prove. Likes the story long-term and he can see more upside. Attractive dividend that is safe. Definitely an out of favour occurring value story and if you are this kind of investor, this is one you want to own.

Stock has been flat over the last year. The trouble with many of the major oil companies is that they are going to have a very difficult time finding new assets that are going to give them growth. 5.2% dividend yield.

(A Top Pick July 13/12. Up 13.57%.) Longer-term, the catalyst here is going to be the conclusion of litigation so he has some fairly bullish upside once that litigation is removed.

This company is on sale. Has a big litigation overhang. Had to sell off some assets and build a provision for the liability. Once the liability is removed, likely this year, stock should move higher. Recently sold off their Russian assets and rolled the majority of the proceeds into Rosniv (?), a substantial Russian oil company. With the balance of their $8 billion they are going to buy back shares and he sees some lift there. 5.13% dividend yield.

Has gone through a very, very difficult time and he doesn’t think the legal issues are all over with but feels they are benign at best and it’s just about writing a cheque. Sold off their Russian assets for a reasonable price and now the question is, will they be able to reinvest those assets and get a better return off them.