EnerCom Conference Update - Aug 20

[dan_s]

Baytex impressed me the most today. 6% dividend yield, heavily weighted to oil and lots of upside for the share price. I may have to move it into the Sweet 16.

Lightstream made a good presentation. Production holding at over 40,000 boepd, heavily weighted to light oil. Focus this year is on improving the balance sheet, but they have plenty of running room. Over 2,000 low risk drilling locations in the Bakken and Cardium. Monthly dividends with over 7% annual yield. Dividends are rock solid.

[dan_s]

National Fuel Gas (NFG) was also very impressive. Huge upside in the Marcellus and Utica, plus California generates lots of free cash flow.

[mikelp]

Dan: appreciate hearing daily reports on Enercom presentations. I added BTE to my holdings after you included it into the EPG High Yield Income portfolio. What do you think is behind the recent selloff in LSTMF? Any specific problems or just a casualty of the energy sector correction? It's been taken out behind the shed and beaten to a pulp recently. thanks

[dan_s]

Lightstream is going to be fine and the monthly dividends are secure. I did go to their presentation at EnerCom and had a brief chat with the CEO. Their Bakken is generating free cash flow today and the Cardium is very close. Asset sales have significantly paid down the debt. Balance Sheet will be in much better shape by year-end.

They did reduce their production guidance a bit because of some problems at Swan Lake. They are in the process of technical review of Swan Lake and capex there will be pushed into 2015.
Part of the selloff is just the sector move caused by the dip in oil prices. IMO oil prices will be moving up in the 4th quarter as global demand will be picking up. August is a rather soft month for oil demand.

[jb2257]

Did you get a chance to listen to AREX's presentation? That one's been tough, but they are having a pretty good day today.