Two examples of “Safety=Diversification vs.

Wealth = Concentration” would be the following…

Whitecap Resources (WCP-tsx: $10.73, 28June2013) - Anticipating further dividend

growth in 2014; retains industry leading sustainability.

Whitecap Resources is an intermediate

exploration and production company with

a significant land base operating in the

Western Canadian Sedimentary Basin.

It was formed as the product of a reverse

takeover of Spitfire Energy in 2010.

5% dividend boost conservative, currently paying a 5.6% yield: Canaccord analyst Steve

Toth believes they have more room to move in 2014 and tells us, “WCP maintains the lowest total

payout ratio in the sector at 96% and 93% in 2013/2014E, respectively, which we believe could

support an increase by as much as 15% while maintaining a total payout ratio below 100%.”

Valuation: “Whitecap currently trades at a 0.9x multiple to CNAV estimate, 7.0x EV/DACF, and

$107,400/BOEPD based on our 2013 estimates vs. its peer group averages of 0.8x CNAV, 7.6x

EV/DACF, and $68,200/BOEPD.” (CG 27June2013)

…due to the length of the article, please call/email me if you would like it in its entirety.

Bellatrix Exploration (BXE-tsx: $6.38, 28June2013) - Closes one JV transaction, two

options to expand remain

Bellatrix Exploration is an intermediate sized exploration and production company with operations

in Western Canada primarily focused on multi-zone opportunities in west central Alberta.

Two remaining JV options provide additional ~$1/share potential value. Steve Toth tells us,

“Further acceleration of its large undeveloped well inventory (>1,000 drilling locations in its two

core target formations) is key to further revaluation of the stock. The two remaining JV options in

the deal could potentially bring in an incremental $150 million. Assuming similar accretion, this

has the potential to increase our valuation by a further ~$1.00/share.”

Valuation: “Bellatrix trades at a 0.6x

multiple to CNAV, a 4.9x EV/DACF

multiple, and $38,700 per BOEPD

based on our 2013 estimates,

compared to peer group averages of

0.8x NAV, 7.6x EV/DACF, and

$67,800/BOEPD.” (CG 27June2013)