Oil Stocks: Robert J. Toole (I)
Robert J. Toole, managing director, Creststreet Asset Management
HARVEST ENERGY (NYSE:HTE TSE:HTE.UN): I think chances of HARVEST moving back to exploration not good because of Newfoundland refining acquisition..they have been quite successful in financing program..refining asset does benefit from low crude prices so from that perspective, HARVEST probably better positioned than others..refinery stable asset, can maintain distributions
DELPHI ENERGY (TSE:DEE): we are quite negative on DELPHI..company has debt problem, natural gas prices quite low right now..having to sell assets in order to pay down its bankers..if you did not own it, would not look for entry point..sell if you hold it
PENN WEST (NYSE:PWE TSE:PWT.UN): given our outlook for energy trusts in general, we are not recommending any at this point in time..if you are interested, PENN WEST has broad asset base with some strong undeveloped land potential..could position PENN WEST to convert, they were one of the last companies to convert..however, like most trusts, has high payout ratio..average payout ratio of trusts right now is 135% of cash flow given distribution and CapEx
SOLANA RESOURCES (CVE:SOR): not particularly familiar with SOLANA..Columbia represents opportunity and risk..quite prolific for crude oil, have been some major discoveries of the years..issue is the guerillas that can extort and exploit companies..given those issues we in general have stayed away
SHININGBANK ENERGY (TSE:SHN.UN): one of the worst performing trusts through last period..was not surprise that they cut distributions..we think most trusts will have to cut distributions going forward..SHININGBANK trading at about 13% yield, pretty much in-line with peer group..quite leveraged to natural gas, we do have bullish outlook for next year, year and a half..we think investing in juniors better way to play on upside instead of trust with high payout issues
SYNENCO ENERGY (TSE:SYN): very leveraged to crude prices given that it is heavy oil..we think that if you are looking to play crude prices, better off looking at more conventional producers that can grow their production and cash flow in near term, less risk..
PAST PICK WEST ENERGY (TSE:WTL): WEST has done good job growing production but with crude selling off, share price has suffered..it is one of our oil-weighted picks..property in west-central Alberta..company in our view at least couple of years growth potential just in this one play that they are involved with..competitive land position, outmaneuvering competition..
HARVEST ENERGY (NYSE:HTE TSE:HTE.UN): I think chances of HARVEST moving back to exploration not good because of Newfoundland refining acquisition..they have been quite successful in financing program..refining asset does benefit from low crude prices so from that perspective, HARVEST probably better positioned than others..refinery stable asset, can maintain distributions
DELPHI ENERGY (TSE:DEE): we are quite negative on DELPHI..company has debt problem, natural gas prices quite low right now..having to sell assets in order to pay down its bankers..if you did not own it, would not look for entry point..sell if you hold it
PENN WEST (NYSE:PWE TSE:PWT.UN): given our outlook for energy trusts in general, we are not recommending any at this point in time..if you are interested, PENN WEST has broad asset base with some strong undeveloped land potential..could position PENN WEST to convert, they were one of the last companies to convert..however, like most trusts, has high payout ratio..average payout ratio of trusts right now is 135% of cash flow given distribution and CapEx
SOLANA RESOURCES (CVE:SOR): not particularly familiar with SOLANA..Columbia represents opportunity and risk..quite prolific for crude oil, have been some major discoveries of the years..issue is the guerillas that can extort and exploit companies..given those issues we in general have stayed away
SHININGBANK ENERGY (TSE:SHN.UN): one of the worst performing trusts through last period..was not surprise that they cut distributions..we think most trusts will have to cut distributions going forward..SHININGBANK trading at about 13% yield, pretty much in-line with peer group..quite leveraged to natural gas, we do have bullish outlook for next year, year and a half..we think investing in juniors better way to play on upside instead of trust with high payout issues
SYNENCO ENERGY (TSE:SYN): very leveraged to crude prices given that it is heavy oil..we think that if you are looking to play crude prices, better off looking at more conventional producers that can grow their production and cash flow in near term, less risk..
PAST PICK WEST ENERGY (TSE:WTL): WEST has done good job growing production but with crude selling off, share price has suffered..it is one of our oil-weighted picks..property in west-central Alberta..company in our view at least couple of years growth potential just in this one play that they are involved with..competitive land position, outmaneuvering competition..
posted by Spelunca at 2:18 PM
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