John Stephenson’s Top Picks for Sept. 21, 2026

John Stephenson, Founder & Oil & Gas Analyst, Granite Point Research

Focus: North American Oil, Gas & Utility Stocks

Top Picks: BluEnergies, Spartan Delta, CanCambria Energy

MARKET OUTLOOK:

Energy remains well positioned to be the market leader through the balance of the year. Crude oil is likely to remain elevated (approximately US$100 per barrel) while North American natural gas prices will be under pressure. The U.S. markets appear very over-valued with the Shiller PE currently sitting at 40.52 versus a long-term mean of 17.42 and a maximum value of 44.19 (2008-2009 financial crisis). Security selection is key and would advise investors to select securities that are inexpensive and have identifiable catalysts.

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TOP PICKS:

BluEnergies (BLU TSX)

• A junior oil & gas company partnering with TotalEnergies in three blocks in offshore Liberia
• West shore Africa is the place to be for Global Majors as it is geologically similar to major producing regions in offshore Guyana, Suriname and Brazil
• Multi-billion boe resource potential – on the 2.2 million acres there are seven deep water fans with the Cretaceous fan plays being the most highly sought-after as they offer large scale and short cycle time from discovery to first oil
• BLU recently acquired a previously discovered and tested sand channel play offshore Louisiana in the shallow Gulf of Mexico
• Only junior active in offshore Liberia an emerging oil & gas powerhouse

Spartan Delta (SDE TSX)

• 550,000 acres in the Duvernay, production on the second quarter (Q2) was up 37 per cent pushing toward 70 to 80 per cent oil & liquids
• Advancements in technology has shifted the economics of the Duvernay in the past decade which has shifted investor focus – one of the better performing stocks YTD (up 57 per cent versus XEG 42 per cent) – this pivot in economics has seen more interest from mainstream investors
• Given management’s ability to position itself in emerging areas and strong balance sheet we’re encouraged for what could transpire
• With Q2, momentum should continue with positive performance vs. expectations again (plus two per cent); additional growth plans (plus 10 per cent capex; two per cent production); additional Duvernay acreage (plus six per cent to 867 sections) and continued strong Duvernay and Mannville well results

CanCambria Energy (CCEC TSX)

• CanCambria focuses on high-quality, de-risked projects with direct access to profitable markets. Has 100 per cent working interest in the Kiskunhalas Tight Gs Sand Project in southern Hungary a significant gas-condensate resource in the heart of Europe
• Company has identified a shallow 350 square kilometre high-impact exploration trend within the Kiskunhalas concession. The company is evaluating ten newly identified oil prospects at approximately 1,500 metres. This gives the portfolio low-cost, near-term oil-weighted potential alongside the larger, contingent tight-gas development
• A proven basin with around two TCF of natural gas in place on an undiscovered, un-risked basis – the 2025 award of the KCA could add significant additional value. The contiguous area of 945.9 square kilometers in a proven hydrocarbon basin with a history of gas and oil production could add significant value as it is appraised and delineated
• European natural gas now trades at US$27.27 per marginal cost of public funds(Mcf) versus US$2.92 at Henry Hub
• Joint venture process advancing – with the process expected to conclude in fourth quarter (Q4) of2026

PAST PICKS: JULY 22, 2026

Surge Energy (SGY TSX)

Then: $10.18

Now: $11.62

Return: 14%

Total Return: 15%

Kelt Exploration (KEL TSX)

Then: $10.11

Now: $10.48

Return: 4%

Total Return: 4%

Highwood Asset Management (HAM TSX)

Then: $5.66

Now: $5.67

Return: 0.17%

Total Return: 0.17%

Total Return Average: 6%