Crew Energy Inc. (CR.TO)

(Market Call Minute.) Rapidly establishing itself is the premier Montney player. They sell 40% of their gas into the Chicago market and get great prices.

One of those companies that transformed into a serious Montney player and have done a pretty good job. One of the best Montney players out there, but he thinks the market has been a little bit harsh on this one. The area they operate in is big play/big cost one.

It is just above the lows of 2012-2014. It is one of the better ones. It is performing the same as natural gas. He thinks you are okay here because it is holding the lows. It has anticipated the Nat. gas sell off.

This is in an OK situation. Debt to cash flow would be around 3X using $50 oil, so it’s not terrible and better than the average. This is in some of the better areas of the Montney’s, a very liquids rich play. Also, have an emerging oil play in Tower. They recently dropped their CapX along with everybody else, so production growth this year is kind of anaemic, to protect the balance sheet. He would rather own a company with a sustainable dividend.

We are into a new playing field that has been created by these low energy prices, and probably all companies are looking to see who they can pick up to improve their team. The long-term chart shows this as being right back at the level it was in 2013-2014. A pretty volatile stock. Thinks it is a little early for people to think about what their future holds.

One of the premier up and coming natural gas names. If you are bullish on natural gas, this is a good name. Stock is still weak here. Don't sell your energy stocks now, wait until the coldest time of the year, such as January.

Likes management. In terms of natural gas exposure, he would put this as number 4 or 5 in terms of companies to own for natural gas exposure. Has done a great job. Good assets, good management, good geological prospects and a good team. A good one for this sector.

Sell Crew Energy (CR-T) to Buy Spartan (SPE-T)? Crew is a great company. One of the issues is what they are going to do with their oil property in southeast Alberta, so he wouldn’t be too hasty on selling.

Natural gas. Mostly focused in Northeast BC. Even though the stock has gone up quite a bit, the valuation is still isn’t bad. Also, have some oil in Northeast BC. Thinks they are going to have a good few years.

(A Top Pick April 15/13. Up 61.53%.) Had been in the penalty box as investors were disappointed with some of the oil drilling. It was an unloved stock and he saw value in it. With the recent pullback, this is a good entry point.

(Market Call Minute) Could be the preeminent player in the Natural Gas space.

(A Top Pick March 12/13. Up 23.82%.) This was definitely out of favour last year. Traded in a $5-$6.50 range and he bought a lot of stock in the $5.80-$6 range. It is finally getting the attention of some investors. Still trades at a cheaper multiple than the group. What has gotten investor interest recently is the focus on their Montne gas assets. Pretty good drill results and their land has expanded there. Thinks this will continue to move higher.

Huge resource base that has grown over the last couple of years. A couple of acquisitions didn’t work out this year. They have been refocusing on being an unconventional gas player.

There is nothing exciting about it. It trades at the WTI price. It’s a cheap stock. It could do well with incremental drilling. It is not dynamic enough for him, but there is nothing wrong with it.

Has been a weak performer. Had some operational issues in some of their plays. There has been a bit of a taint. Stock is really cheap and the balance sheet is good and there is talk they could be selling off their assets and just become a Montney player. Has acreage of really good quality.