Oil Stocks
CHEVRON CORP. $100 (New York symbol CVX; Conservative Growth Portfolio, Resources sector; Shares outstanding: 2.0 billion; Market cap: $200.0 billion; Price-to-sales ratio: 0.8; Dividend yield: 3.2%; TSINetwork Rating: Above Average; www.chevron.com) plans to spend $32.7 billion on capital upgrades in 2012. That’s up 25.8% from the $26.0 billion it will probably spend in 2011.
About 87% of the 2012 spending will …read more »
MART RESOURCES $0.76 (Toronto symbol MMT; TSINetwork Rating: Speculative) (403-270-1841; www.martresources.com; Shares outstanding: 340.3 million; Market cap: $258.6 million; No dividends paid) trades at a low multiple to cash flow. That reflects investor concern about unstable Nigeria.
Right now, Mart is producing oil from its 50%-held Umusadege field in southern Nigeria.
In the three months ended September 30, 2011, Mart’s revenue jumped …read more »
TRANSCANADA CORP. (Toronto symbol TRP; www.transcanada.com) has agreed to reroute its proposed Keystone XL oil pipeline around an environmentally sensitive aquifer in Nebraska’s Sandhills region.
The state government will work closely with TransCanada to find an acceptable route. That should speed up the environmental approval process for this Canadian stock’s biggest pipeline project.
Keystone XL will pump oil from the Alberta …read more »
Pat McKeough responds to many personal questions on stocks and other investment topics from the members of his Inner Circle. Every week, his comments and recommendations on a selection of the most intriguing questions of the past week go out to all Inner Circle members. And every Friday, we offer you one of the highlights from these Q&A sessions.
One of …read more »
DELPHI ENERGY $2.20 (Toronto symbol DEE; TSI Network Rating: Speculative) (403-265-6171; www.delphienergy.ca; Shares outstanding: 119.2 million; Market cap: $262.2 million; No dividends paid) explores for oil and natural gas in Alberta and B.C. The company is now focusing on its Bigstone, Hythe and Wapiti/Gold Creek properties in northwestern Alberta.
Gas makes up 72% of Delphi’s daily output; the remaining 28% is …read more »
New technologies are helping to unlock the vast reserves of the oil sands and shale-gas fields in North America. However, the extra production could hold back oil and natural gas prices.
That’s why we feel it’s a great time to own our favourite integrated oil producer Imperial Oil. Besides drilling for oil, Imperial also owns refineries which convert crude oil into …read more »
PENGROWTH ENERGY CORP. $10 (Toronto symbol PGF; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 330.1 million; Market cap: $3.3 billion; Price-to sales ratio: 2.4; Dividend yield: 8.4%; TSINetwork Rating: Average; www.pengrowth.com) produced an average of 74,568 barrels of oil equivalent per day (including natural gas) in the third quarter of 2011. That’s up 2.6% from 72,704 barrels a year earlier. …read more »
BELLATRIX EXPLORATION $4.29 (Toronto symbol BXE; TSINetwork Rating: Speculative) (403-266-8670; www.bellatrixexploration.com; Shares outstanding: 114.2 million; Market cap: $448.9 million; No dividends paid) produces oil and natural gas in Alberta, B.C. and Saskatchewan. Gas makes up about 62% of its output; the remaining 38% is oil.
In the three months ended June 30, 2011, Bellatrix’s production rose 51.8%, to 11,643 barrels of …read more »
ENBRIDGE INC. $32 (Toronto symbol ENB; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 776.4 million; Market cap: $24.8 billion; Price-to-sales ratio: 1.4; Dividend yield: 3.1%; TSINetwork Rating: Above Average; www.enbridge.com) continues to win support from shippers for its proposed Northern Gateway pipeline, which would pump crude oil from Edmonton to a storage terminal in Kitimat, B.C. From there, the oil …read more »
All resource stocks are subject to the risk that comes with the rise and fall of commodity prices. But, depending on where they do business, some also face a second challenge: political risk.
Among Canadian mining stocks, Sherritt International (Toronto symbol S) is prominently identified with political risk due to its extensive involvement in Cuba. The company’s Cuban operations are …read more »
