TD Morning Action Notes, AddendumOur slip briefly below the $80 level for WTI last week seems to have prompted TD to Stress Test O+G stocks at lower oil price levels, and this morning they reissued the report I referenced in a post last week. (Here's the link to this latest report: https://research.tdwaterhouse.ca/research/Reports/Report?documentKey=63-20141021_MR-20141021). FYI and FWIW, here are their opening remarks: "In this publication, we present the key conclusions drawn from stress testing lower oil prices across our entire energy universe. We have applied flat price decks of US$70/bbl for WTI and US$75/bbl for Brent, keeping all other assumptions constant (including forex, differentials, and gas prices). These oil price assumptions are approximately 17–18% below our current assumptions (Exhibit 1). As illustrated in Exhibit 2, we have seen extreme oil price volatility year-to-date, and we view this stress test as a reasonably prudent scenario — at least for the time being! We have applied this test even though we remain cautiously optimistic with respect to the long-term energy market outlook. However, there is merit in identifying the most resilient names in what we consider to be a shock scenario, as we expect that investors are increasingly selective and there is flight to higher-quality names." And, here are the names of the companies they feel best passed this latest stress test: "Within the Domestic Junior & Intermediate E&Ps, the stocks which should fare the best from a valuation and liquidity perspective are: Whitecap, Crescent Point, Raging River, Northern Blizzard, Surge, Spartan, TORC, Twin Butte, and Vermilion."