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Canadian Oil and Gas Companies Turn to Rail to Transport Volumes, Avoiding Pipeline Bottlenecks: Expert Analyst Don Rawson Discusses Trends in the Sector with The Wall Street Transcript

67 WALL STREET, New York - May 10, 2013 - The Wall Street Transcript has just published its High-Yield Equity Securities Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Increasing Demand for Midstream Assets - U.S. Energy Infrastructure Build Out - Oil and Gas Transportation Infrastructure Demand - Master Limited Partnerships Distribution Growth - Low Treasury Yields and MLP Dividends -

Companies include: RMP ENERGY (RMP.TO), TriOil Resources Ltd. (TOL.V), Legacy Oil + Gas (LEG.TO), Crescent Point Energy Corp. (CPG.TO) and many more.

In the following excerpt from the High-Yield Equity Securities Report, an expert analyst discusses the outlook for the sector for investors:

TWST: Which specific names do you like in the midcap space?

Mr. Rawson: One that would stick out in that group would be Legacy Oil + Gas (LEG.TO), an oily producer. It's got a handful of key resource plays with really deep inventories of drilling locations, many of which are not reflected in the reserve report.

It has really strong netbacks because it is light-oil-weighted, more than 85% oil. The valuation is very attractive now because these stocks have been pushed down indiscriminately, and this is one that's come down with the market despite being well-managed, having access to capital and good assets. There is a lot of value out there, but I don't think that you need to be a hero by buying the cheapest names - this is a quality name that's been sold off heavily.

TWST: In your coverage right now, who are your top picks that pay a dividend?

Mr. Rawson: Among the yield names, definitely Crescent Point (CPG.TO) sticks out as a very well-run company with a well-regarded management team and business model. It is focused in a few key top-notch oily resource plays, it has great netbacks and is very conservatively run in terms of its balance sheet, hedge book and track record of managing Street expectations.

It typically trades at a premium multiple supporting its business acquisition model, which has been one of the cornerstones of its strategy in the past. Right now though, it has sold off, and it's quite attractive on today's valuation, yielding close to 8%. On our numbers, it's trading at about eight times debt-adjusted cash flow this year, which is really quite cheap compared to its typical trading multiple historically.

TWST: Looking ahead, is there anything that you see on the horizon that could significantly either hurt or help the...

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.