Lightstream Resources (LTS.TO)

15.5% dividend because of high debt level. Production is strong. May have to tweak the dividend because payout ratio is about 130%.

Believes the company is going to come out on Nov 21/13 and provide operational guidance. Expects they are going to cut the 15.5% dividend by 50%. This would be good. At that level, the payout ratio would be about 108%. Debt level is still very high. If they put in these cuts, he thinks the stock can have a nice jump. This is a higher risk stock and you might want to buy it with Call options or do a partial Buy.

Was an aggressive driller back two years ago. They leaned on their balance sheet and continued to pay the dividend and decline rates skyrocketed. He is not a fan of the business model. His views are being confirmed. Thinks they will cut the dividend.

Street is telling you it is nervous and it does not rank well in his process. With that kind of dividend he would sell it. Prefers CPG-T for the dividend.

Believes they have some of the best assets in the Alberta region in their Cardium lands, as well as in Saskatchewan in the Bakken. Dividend yield is something like 13% and this is because they have a very high debt level of about $2.2 billion, which represents about 3.4X debt to cash flow. They have a 90% investment in Trial (?), which is going to be taken over by a Polish company which should help to pay down the debt.

13.1% dividend yield and she feels there is a chance that they might cut this because the capital program as well as the dividend comes out to about 130% of cash flow. Have a lot of debt on the books of about 3-3.5 times cash flow, which is high for her. If oil prices were to pull back, that payout ratio would be a lot more. However she doesn’t think the risk of a distribution cut is imminent and you might have a few more months, because management seems to believe that they can continue to use the line to fund operations.

(Market Call Minute.) Just not executing.

Light oil producer both in the Bakken and the Cardium. Has a whopping $2.2 billion of debt, which has resulted in a debt to cash flow level of 3.5, basically double what other companies are trading at. Very cheap valuation at 4.5X price to cash flow. The dividend, in excess of 12%, signals that there are perhaps better ways to spend the money. Caution on this one.

Has been mildly negative on this story for a while because of their propensity to massively outspend cash flow and still pay a dividend by using debt. Debt to cash flow is a little bit too high for him. 11.5% dividend yield.

Has big debt. Debt to cash flow is 4.7X 2014 estimates. That is big, however the company is saying that they think their effective payout ratio by 2013 will go down to 130%. If they are right, it is a really good Buy at this price. Be aware that there is a lot of debt here. For a risk tolerance investor, this could be a good shot at these prices.

Yield is close to 12% and implicitly the market is trying to tell you the dividend is not safe. Debt levels are high. Has always been concerned how hard this company has run and, as a direct result, how high the decline rate has been. There are better places to put your money.

Has stayed away from this. Similar situation to Penn West (PWT-T) comments but they don’t have as deep of an inventory position.

Is this a good time to go into the pipelines or is this sector overbought? You are going to get the yield and maybe even a couple of points capital gain over the next 12 months on pipelines. Would much prefer Inter Pipeline (IPL.UN-T). If you are looking for yield and a little bit of growth, nothing spectacular, pipelines are the place to be.

Thinks it will go straight sideways. Little growth. Balance sheet is improving, however. We are having demand destruction in North America, though.

(Market Call Minute) High decline rates. Selling assets, they have struggled.