Lightstream Resources (LTS.TO)

Cut their dividend but that was not a bad thing. Feels there are better companies out there. (See Top Picks.)

High decline rates led people to believe the dividend was not sustainable. Did a good job of divesting non-core assets. Debt to cash flow is about 2 times, which would be high historically but balance sheets in the sector have ballooned out. Balance sheet is not bad but decline rates are a little high because they are very aggressive drillers. Getting to be pretty compelling and would probably be looking to increase his weighting. Trading at about 4X cash flow, which is remarkably cheap given the rate of growth they’ve been achieving. Also have 4 plays they will be delineating later this year.

A more aggressive growthier type company in the oil patch and have been hurt because of the increase in differentials in Canadian crude. Dividend is probably sustainable but you need consistently stable oil prices. Hopefully this company will scale back in the growth and concentrate on execution. Too risky for him.

There was tremendous enthusiasm and excitement about the whole Bakken play. If you own, you might want to consider this for tax loss selling. You can always buy it back 30 days later.

(Market Call Minute.) Very decent production profile although that has not been reflected in the share price so it is probably worth buying at the moment.

The street downgraded the Canadian energy sector because the supply is rising so prices are depressed for the next couple of years. Stocks concentrated in those plays will do badly in the next little while.

Payout ratio is huge at about 180. Very stretched balance sheet that doesn’t leave them a lot of flexibility. 8.8% dividend yield.

Generating a fairly good yield. Her only knock on the story is that they have about 4 to 5 times debt to cash flow, which is on the high side for her. They do have more room on their line so that is not a threat. Good management. A lot of the Petrobank (PBG-T) selling is anticipated in the stock already so if you like the stock you could Buy it here. Yielding 8.5% but there are a lot of other names you could go to such as Crescent Point (CPG-T) or Baytex (BTE-T) which yield less but are better quality and have less debt.

Fundamentally they are phenomenal. The world demand for oil and gas is strong. The problem is that you had a difficult situation when the market pulled back. Then the yield story became interesting. Would have preferred to get stopped out way back but he would be looking at buying in again shortly.

He has gone in and out of it. Have a very aggressive spending plan to the end of the year to meet their exit guidance. It is essentially a slam dunk. Dividend yield is about 7%, which some people are mildly concerned about. But they will never cut their dividend. Company has done a good job of deleveraging the balance sheet. Good long term hold or short term trade.

Has a lot of debt. Debt to cash flow is about 3.2%. Thinks their Q3 production was flat. Still guiding pretty good for Q4 and if they can reach their guidance, the stock still has some upside but they’ll have to execute really well to get there.

(Market Call Minute) Getting hit by the fact that there is too much production and they are getting hit by the differentials.

Extremely well run company. The best time to step into oil is in the beginning of July and this is the time to be getting out. The other time to be getting in this is in February running through until May.

Petrobank (PBG-T) owns 57% or about 108 million shares. This company introduced a DRIP program about a year ago so Petrobank gets shares as part of the DRIP program so they sell shares on the open market to keep their holdings at 57%. Puts a bit of pressure on to a degree but it is not something he would not be overly concerned with.

This is a higher risk name. Trades at a real discount to the group. Thinks their enterprise value is maybe about 6% versus the groups 8%-9%. Last quarter they did about 38,000 production and are saying their exit rate will be about 56,000. They have a lot of debt.