Cenovus Energy Inc.

A new deal between OPEC, Russia and other big oil producers to limit output through the end of 2018 should help support current crude prices. That’s good news for Cenovus, which needs steady prices to pay down the debt it took on to gain full control of its two main oil sands properties....

IMPERIAL OIL $41.46 (Toronto symbol IMO; Shares outstanding: 844.3 million; Market cap: $34.7 billion; TSINetwork Rating: Average; Dividend yield: 1.5%; www. imperialoil.ca) is Canada’s second-largest publicly traded oil company, after Suncor. ExxonMobil (New York symbol XOM) owns 69.6% of Imperial.

About 90% of the company’s crude production comes from its Alberta oil sands operations, including its 25% stake in the Syncrude project.

Imperial manages that operation, although Suncor holds a 53.74% share....

CENOVUS ENERGY INC. $12 (Toronto symbol CVE; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.2 billion; Market cap: $14.4 billion; Price-to-sales ratio: 1.0; Dividend yield: 2.0%; TSINetwork Rating: Extra Risk; www.cenovus.com) recently acquired 100% of its main oil sands properties in Alberta—Christina Lake and Foster Creek....

CENOVUS ENERGY $12.26 (Toronto symbol CVE; Shares outstanding: 1.2 billion; Market cap: $15.1 billion; TSINetwork Rating: Average; Dividend yield: 1.6%; www.cenovus.com) continues to sell assets to pay down its $12.5 billion debt. That’s equal to a high 83% of its market cap.

The company recently sold its Pelican Lake heavy oil operations in northern Alberta to Canadian Natural Resources Ltd....

Oil prices have moved up about 8% in the past two months to roughly $50 U.S. a barrel. The gain is largely due to OPEC’s production cuts. U.S. output of shale oil has also slowed as producers focus on their most-promising operations.

We continue to recommend all investors hang on to their high-quality oil producers such as the four we analyze below....

BCE INC. $58.55 (Toronto symbol BCE; Shares outstanding: 899.5 million; Market cap: $52.7 billion; TSINetwork Rating: Above Average; Dividend yield: 4.9%; www.bce. ca) has launched its online video-streaming service Alt TV. For $15 a month, users access 30 channels, including local news and sports, on their computers and mobile devices.


BCE feels this new service will appeal to customers who don’t wish to subscribe to its more-expensive Fibe TV packages.


BCE is a buy.


TRANSCANADA CORP....

Cenovus Energy increased its production at the time of the Alberta wildfires and strategic cost-cutting should save it $500 million in 2016.

Below are four oil producers that cut risk with their low costs and high-quality reserves. Although crude prices have moved down lately, we continue to recommend all investors maintain some exposure to oil stocks such as these.


SUNCOR ENERGY INC. $44 (Toronto symbol SU; Conservative Growth Portfolio, Resources sector; s/o: 1.7 billion; Market cap: $74.8 billion; Price-to-sales ratio: 2.5; Divd....

CENOVUS ENERGY $13.32 (Toronto symbol CVE; Shares outstanding: 833.2 million; Market cap: $11.1 billion; TSINetwork Rating: Average; Dividend yield: 1.5%; www.cenovus.com) recently agreed to acquire full control of its main oil sands properties in Alberta.


In all, it will pay $17.7 billion, consisting of $14.1 billion in cash plus 208 million Cenovus common shares....

The Successful Investor

BLACKBERRY LTD., $11.52, Toronto symbol BB, provides wireless communication services, mainly to businesses and government agencies.


The stock jumped 12% this week after an arbitrator awarded the company $814.9 million U.S....