Ranking Assessment What would be your order of preference between Baytex, Headwater, Tamarack, Nuvista, and Cardinal and why?
We would rank: TVE, HWX, NVA, CJ, BTE. Ranking is largely due to management, production growth, valuation and prospects. BTE/CJ historically have had leveraged balance sheets which got them into trouble in down markets, but their financial picture has improved dramatically this cycle. But we take a point off for lack of discipline in other cycles. Neither has created long term shareholder value. TVE's growth profile and very low valuation make it look good. HWX is now debt-free with net cash, which moves it up the ranking. (5iResearch)