Value Microcaps Junior Energy

[dr_airtime]

**Charts of Top CDN O&G Buys**

Here are my tracking charts for the top buys, in the same order as presented in my previous notes.

Crescent Point Energy (Top BNN Pick) CPG.TO
- Stock has bottomed for sure back in September (dr_airtime’s thoughts)
- Sold Midstream
- Doing buy backs
- Trading at 18% FCF yeirld for 2020 (this sounds like after the dividend)
- Trading at 2.7X EV/DACF. “Staggering” multiple per Eric.
- Can double just off multiple expansion.
- This is a go to name for institutions.
- $13 stock at 5X EV /DACF
- Operations in Southeast Sask so less exposed to depressed pricing from pipeline bottlenecks in Alberta
- Sold a property in Utah. Got a good price for the property.
- Team gets an A+ in 2019 per Eric. Should be rewarded

Tourmaline (Top BNN Pick) TOU.TO
- Normalized infrastructure for 9X EBITDA while trading at 3X EBITDA. Have $800mm in liquidiy now to have to acquisitions.
- Catalyst Rich .
- 10% FCF Yield for 2020 (sounds like after dividends)
- Mike Rose 6% of shares – 17mm shares. $240mm in value
- Buying because management is aligned with shareholders
- 3.3% yeild
- Pay a modest premium to liquidation value for the stock.

Baytex (Top Pick) BTE.TO
- +20% FCF Yield
- Underperformed Oil price by 60%, operationally no reason
- Plan is to use FCF to pay down debt
- 2021/2022 notes. Will roll in 2020 as high ye
- Trading at 1/3 of historical multiples
- Nice large Market Cap to attract institutions
- Has fallen off radar for people looking for oil beta
- 2.1X Debt/DACF, lower than Vermillion (top pick
- Eagle Ford is core play, results are better by 15-20% YoY.

MEG Energy MEG.TO


TORC Oil & Gas TOG.TO


Painted Pony PONY.TO


Whitecap WCP.TO
(Note - upon pasting this and looking at support line again I sold and am rotating into a more downtrodden name)

ARC Resources ARX.TO


Birchcliff Energy BIR.TO


Peyto PEY.TO