Crude Oil
The basic form of petroleum pumped from the ground is known as crude oil. Stocks involved and connected with crude oil include drilling and refining, as well as exploration and industry manufacturing.
IMPERIAL OIL $40.61 (Toronto symbol IMO; Shares outstanding: 854.2 million; Market cap: $34.6 billion; TSINetwork Rating: Average; Dividend yield: 1.1%; www.imperialoil.ca) is the largest investor in the Mackenzie pipeline project, which aims to pump natural gas from the Arctic to Alberta. The company owns 34.4% of this project.
Recently, Royal Dutch Shell (New York symbol RDS.A) said it will sell its …read more »
SHAWCOR LTD. $37 (Toronto symbol SCL:A; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 70.6 million; Market cap: $2.6 billion; Price-to-sales ratio: 2.6; Dividend yield: 0.8%; TSINetwork Rating: Average; www.shawcor.com) saw its revenue fall 12.7% in 2010, to $1.0 billion from $1.2 billion in 2009. That’s partly because it competed a major pipeline-coating job in late 2009. Earnings per …read more »
PEMBINA PIPELINE INCOME FUND $14.86 (Toronto symbol PIF.UN; Units outstanding: 151.7 million; Market cap: $2.3 billion; SI Rating: Extra risk) owns nine pipeline systems with a total length of over 8,000 kilometres. This network is the largest feeder operation in Canada. These pipelines bring oil and gas from fields in northeastern B.C. and western and northern Alberta to refineries, or …read more »
Oil and gas trusts are mostly down lately, along with crude oil and natural gas prices.
These three trusts are now cheap in relation to their forecast 2009 cash flows, which are based on those lower oil and gas prices.
ZARGON ENERGY TRUST $14.87 (Toronto symbol ZAR.UN; SI Rating: Speculative) (403-264-9992; www.zargon.ca; Units outstanding: 18.4 million; Market cap: $274.1 million) has oil …read more »
NOVA CHEMICALS CORP. $5.44 (Toronto symbol NCX; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 83.2 million; Market cap: $452.6 million; SI Rating: Extra risk) expects to spend $160 million U.S. on capital upgrades in 2008, down from its original target of up to $225 million U.S. It will also cut its 2009 spending by $100 million U.S.
Nova makes …read more »
IMPERIAL OIL LTD. $42 (Toronto symbol IMO; Conservative Growth Portfolio, Resources sector; Shares outstanding: 869.7 million; Market cap: $33.0 billion; SI Rating: Average) is Canada’s largest integrated oil company. It also operates over 1,900 retail gas stations under the “Esso” banner. ExxonMobil owns 69.6% of Imperial’s stock.
Imperial gets about 90% of its daily crude oil production from its oil sands …read more »
Oil prices have dropped from $148 U.S. a barrel in July, 2008 to its current price of around $44 U.S. That has prompted oil companies to delay big investments in Alberta’s oil sands until conditions improve.
Still, oil sands projects have huge long-term potential, and will provide decades of growth for Imperial Oil, EnCana and Petro-Canada. Companies such as Finning International …read more »
TRANSCANADA CORP. $33.05 (Toronto symbol TRP; Shares outstanding: 611.7 million; Market cap: $20.2 billion; SI Rating: Above average) has completed the sale of 35.1 million new common shares at $33.00 each, for proceeds of $1 billion. The extra shares will increase the total outstanding by about 6%.
The company will use most of the proceeds to fund capital projects such as …read more »
BIRCHCLIFF ENERGY $5.21 (Toronto symbol BIR; SI Rating: Speculative) (403-261-6401; www.birchcliffenergy.com; Units outstanding: 112.4 million; Market cap: $585.6 million) is focused on oil and gas exploration, development and production in northwestern Alberta’s Peace River Arch area.
Last year, Birchcliff paid Compton Petroleum $263.3 million in cash for light oil production and drilling prospects at Worsely. The light oil assets complement Birchcliff’s …read more »
TRANSCANADA CORP. $36 (Toronto symbol TRP; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 578.0 million; Market cap: $20.8 billion; SI Rating: Above average) operates over 59,000 km of pipelines that transport natural gas, mainly from Alberta to markets in central and eastern Canada. The company also operates gas pipelines in the United States and Mexico. This business supplies 55% of …read more »
