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Canadian Oil and Gas E&P Top Stock Pick: 8% Yield with a Secure Balance Sheet is Just One of Many from Sector Expert Don Rawson

67 WALL STREET, New York - July 9, 2013 - The Wall Street Transcript has just published its 2013 Oil & Gas Review. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. 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 - Emerging Shale Plays - Oil and Gas Transportation Infrastructure Demand - Master Limited Partnerships Distribution Growth - Outlook for Natural Gas Liquids - Canadian Oil and Gas Investments

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

In the following excerpt from the 2013 Oil & Gas Review, Don Rawson, a Managing Director at AltaCorp Capital, describes his investing methodology and top picks in the Canadian Oil and Gas sector:

...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 sector?

Mr. Rawson: I think differentials and how they play out is a key risk to the downside or to the upside. I think the differential question wasn't one that investors even focused on until a year ago, and because there are so many moving parts, it's a difficult one to get your arms around. It's a difficult thing to forecast.

The other thing I would say is that to a large degree, U.S. institutional investors have backed away from Canada, and if interest in the sector from U.S. investors gets reignited, that would be a turn to the upside. This market is oversold. Capital flows have...

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.