Eric Nuttall is a portfolio manager at Sprott Asset Management. His focus is on oil and gas stocks.
A-plus management combined with A-plus acreage in several low cost, highly profitable wet natural gas and light oil plays. A 12X multiple could see a $50 stock over a year’s time.
First mover advantage in the key U.S. oil shale plays allows EOG to maintain a cost and profitability advantage over almost all other U.S. oil producers.
Recent weakness due to a short-term AECO basis problem is presenting a good entry point for medium and long-term natural gas bulls.
Past Picks: September 19, 2013
Painted Pony Petroleum
Total return: -18.07 per cent
Total return: +53.75 per cent
Crescent Point Energy
Total return: -4.93 per cent
Total return average: +10.25 per cent
Berkshire Hathaway’s investment in Suncor last week could signal the beginning of U.S. fund flows back into the Canadian energy sector. This, combined with strong underlying fundamentals, should bode well for healthy returns for the remainder of the year.
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