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3 Energy Stocks from Josh Young of Bison Interests

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The oil market has been rocked by escalating tensions in the Middle East, massive price swings, and a growing debate over whether the world is heading into a full-blown energy shock. In this special two-part episode of In the Money with Amber Kanwar, we bring you perspectives from both sides of the market with Josh Young, Portfolio Manager at Bison Investments, and Patrick O’Rourke, Managing Director, Institutional Equity Research at ATB Cormark Capital Markets.

This segment is brought to you by ATB Financial. With over $100 billion in assets, ATB Financial is powering possibilities for more than 843,000 financial services clients.  ATB Cormark Capital Markets is a leading North American investment firm providing holistic corporate and capital markets advice and full-service financial solutions. Visit www.ATB.com/inthemoney for more information.

Past Pro Picks June 3, 2025

  • Journey Energy +95% 
  • Ensign Energy + 17%
  • Vital Energy +4% (taken over by Crescent Energy)

Average: +39%

3 energy stocks to own:

1. Crescent Energy (CRGY – NYSE)

Josh positions Crescent as a “Moneyball”-style operator: acquiring dented/undervalued assets (like the recent Vital Energy deal), turning them around with strong execution, and generating massive value—trading at a discount despite billionaire backing and a trajectory similar to early Strathcona.

  • Acquired Vital assets at an attractive valuation; expects significant synergies (initial $90–$100M+ annual savings, with potential for more through operational cleanup), echoing successful turnarounds of mismanaged properties.
  • Impressive team and KKR association bring top talent and engineering focus; mid-level execution (e.g., asset exploitation) is “inspiring” and positions them to exceed guidance in a rising oil environment.
  • Large discount to intrinsic value offers asymmetric upside; reminiscent of Strathcona’s undervalued phase before re-rating—potential for promotion/story change to drive higher multiples.

2. Ensign Energy Services (ESI.TO)

Josh doubles down on this Murray Edwards-led drilling rig provider, viewing recent weakness (Middle East exposure, rig losses) as overdone punishment. Strong free cash flow at cycle lows and tailwinds in tough-but-lucrative regions create big leverage to recovery.

  • Unduly punished for Middle East (Kuwait losses already priced in; Oman less impacted), but major upside in California (rig count ramping with new permits after years of suppression) and Venezuela (sole operator, with Shell/Chevron farm-ins likely requiring more rigs).
  • Generating >$100M annual free cash flow despite lower US/Canada utilization and rates; deleveraged balance sheet (refinanced debt) amplifies upside via potential buybacks, dividends, or operational gains.
  • Asymmetric setup: Conservative guidance sandbags California/Venezuela; broader drilling recovery (rising prices from Middle East tensions) plus financial leverage could drive substantial re-rating.

3. Journey Energy (JOY.TO)

The small-cap (~$200–$300M market cap) comeback story—doubled since prior highlights despite past issues. Josh sees it as even more compelling now, with cleaned-up operations, outperforming assets, and multiple catalysts in a power-hungry market.
  • Duvernay (Duet) JV with Spartan Delta outperforming expectations (multi-year productivity gains); plus low-decline ~10,000 boe/d conventional production and two delayed power projects expected online soon for cash flow amid North American power shortages (data centers/demand surge).
  • Strong takeover potential (Spartan Delta, adjacent players like BEX, or financial buyers); Duet alone could exceed current share price even at lower oil (~$65 WTI), with bidding war upside similar to past deals.
  • Turnaround progress: Resolved financial/operating irregularities via divestitures and focus; insider alignment (CEO/chairman buying) supports higher premiums—setup for $7–$10+/share or more with oil strength.

Don’t miss the next episode! 

DISCLAIMERS: This text AI generated and should be checked against actual delivery. The content provided in this podcast is for informational purposes only and does not constitute financial, investment, or professional advice. The views expressed by the host and guests are their own and do not necessarily reflect the opinions of any organization or company. The host and guests may maintain positions in any securities discussed on the podcast. Always consult with a qualified financial advisor or professional before making any investment decisions.

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