John Stephenson, founder & oil & gas analyst at Granite Point Research, shares his outlook on North American Oil, Gas & Utility Stocks. <\/p>\n
John Stephenson, Founder & Oil & Gas Analyst, Granite Point Research<\/p>\n
Focus: North American oil, gas and utility stocks<\/p>\n
Top Picks: Surge Energy<\/a>, Kelt Exploration<\/a>, Highwood Asset Management<\/a> <\/p>\n MARKET OUTLOOK:<\/p>\n We expect choppy gains for the balance of the year for the Toronto Stock Exchange (TSX). We believe that the tariff dispute could present a significant overhang in the short-to-medium term for the TSX. <\/p>\n We also note that the U.S. 10-year Treasury note yield has backed up and now sits at 4.63 per cent. <\/p>\n We believe that in markets that present above-average risk, security selection is key and would advise investors to select securities that are trading at a discount to their peers and have identifiable catalysts.<\/p>\n TOP PICKS:<\/p>\n John Stephenson’s Top Picks: Surge Energy, Kelt Exploration & Highwood Asset Management John Stephenson, founder & oil & gas analyst at Granite Point Research, shares his top stock picks to watch in the market. <\/p>\n Surge Energy<\/a> (SGY TSX)<\/p>\n Surge Energy has some of the industry\u2019s best performing wells at its Sparky and Frobisher plays.<\/p>\n The company is focused on maximizing free cash flow and providing long-term stable growth in shareholder returns, backed by disciplined capital allocation and long-term decline management.<\/p>\n Surge has strong 2026 momentum and higher growth that is attractive to investors. <\/p>\n Inexpensive valuation and off-the-radar name.<\/p>\n Kelt Exploration<\/a> (KEL TSX)<\/p>\n Kelt Exploration offers a compelling combination of scale and capability, anchored by an extensive Montney land base and growing gas processing capacity.<\/p>\n Transitioning from an exploration-led approach to a more manufacturing-style development program.<\/p>\n We believe it should experience top-quartile growth over the next couple of years.<\/p>\n Focused on production of crude oil and natural gas in west-central Alberta and northeast B.C.<\/p>\n Highwood Asset Management<\/a> (HAM TSX)<\/p>\n An oil weighted producer with key assets focused on the Brazeau area of Alberta.<\/p>\n Recent sale of its Wilson Creek assets has significantly improved the balance sheet \u2013 Net debt moves to approximately $15 million (down from $114 million) \u2013 which affords the company substantial financial flexibility.<\/p>\n Highwood has recently announced its inaugural normal course issuer bid a strong vote of confidence in its shares by the board of directors.<\/p>\n Inexpensive valuation with multiple catalysts to move the stock higher.<\/p>\n DISCLOSUREPERSONALFAMILYPORTFOLIO\/FUNDSGY TSXNNNKEL TSXNNNHAM TSXNNN<\/p>\n PAST PICKS:<\/p>\n John Stephenson’s Past Picks: Canadian Natural Resources, Headwater Exploration & Tamarack Valley John Stephenson, founder & oil & gas analyst at Granite Point Research, discusses his past stock picks and how they’re doing in the market today. <\/p>\n Canadian Natural Resources<\/a> (CNQ TSX)<\/p>\n Then: $41.20<\/p>\n Now: $63.92<\/p>\n Return: 55%<\/p>\n Total Return: 61%<\/p>\n