Eric Nuttall is portfolio manager with Sprott Asset Management. His focus is on oil and gas stocks.
Painted Pony Petroluem
Painted Pony's highly strategic Montney gas asset will become very attractive as we get closer to West Coast LNG exports; it has a risked net asset value of $38.
Trican Well Services
Concerns about U.S. margin erosion and overcapacity are severely overblown; Trican trades at 3.2 times 2012 EV/EBITDA versus a trough historical multiple of 5 times.
Strong production growth and unbooked resource delineation will be the strategy for 2012; the company recently came out with a $40/share resource value.
Past Picks: Feb. 9, 2011
Total Return: -38.11%
Total Return: -45.00%
Total Return: -39.08%
Total Return Average: -40.73%
Demand for oil remains at a record high while supply from non-OPEC continues to stall and OPEC sits on historically low excess capacity. Meanwhile, the outlook for natural gas is bleak due to record warm weather and continued record production. Look for natural gas prices to fall below $2.00/mcf in the next few months.
Compiled by Franklin Cameron, BNN Market Call Tonight