cenovus energy

CENOVUS ENERGY $31.99 (Toronto symbol CVE; Shares outstanding: 754.7 million; Market cap: $24.1 billion; TSINetwork Rating: Extra Risk; Dividend yield: 2.8%; www.cenovus.com) operates three oil sands projects in Alberta and one in Saskatchewan. The company ships the heavy bitumen from these assets to refineries in Illinois and Texas. ConocoPhillips (New York symbol COP) owns 50% of these refineries and 50% of Cenovus’s two main oil sands projects. Cenovus also owns conventional oil and natural gas properties.

In the three months ended June 30, 2012, Cenovus’s cash flow per share fell 1.6%, to $1.22 from $1.24 a year earlier. Lower oil prices offset a 27.8% increase in production, to 155,566 barrels of oil per day from 121,762 barrels.

Cenovus has started producing oil at the fourth phase of its Christina Lake oil sands project in Alberta. The startup is three months ahead of schedule and within budget. ConocoPhillips owns 50% of Christina Lake.

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Encana took its present form on December 1, 2009, after the old EnCana Corp. split itself into two new companies: the new Encana, which focuses on natural gas, and Cenovus Energy, which specializes in oil sands. Falling gas prices have pushed Encana’s shares down about 30% since the split. Oil prices have weakened lately, but Cenovus’ shares are up about 14%. ENCANA CORP (Toronto symbol ECA; www.encana.com) is one of North America’s largest natural gas producers. Its reserves should last over 11 years....

SHAWCOR LTD., $41.85, Toronto symbol SCL.A, jumped 18% this week after it announced that it will conduct a strategic review of its operations. This could lead to a sale of some of its businesses or the entire company. ShawCor makes sealants and coatings that keep oil and natural gas pipelines from rusting. It also manufactures industrial products, such as electrical wire and protective sheaths. The family of ShawCor’s founder controls the company through multiple-voting shares, which give them 63% of the total votes. It was their desire to sell their holdings that led to the strategic review....

Encana took its present form on December 1, 2009, after the old EnCana Corp. split itself into two new companies: the new Encana, which focuses on natural gas, and Cenovus Energy, which specializes in oil sands. Falling gas prices have pushed Encana’s shares down about 30% since the split. Oil prices have weakened lately, but Cenovus’shares are up about 14%. ENCANA CORP $21.36 (Toronto symbol ECA; Shares outstanding: 736.3 million; Market cap: $15.7 billion; TSINetwork Rating: Average; Dividend yield: 3.9%; www.encana.com) is one of North America’s largest natural gas producers. Its reserves should last over 11 years. Encana’s cash flow was $1.08 a share in the three months ended June 30, 2012 (all amounts except share price and market cap in U.S. dollars). That’s down 27.0% from $1.48 a share, a year earlier....

CENOVUS ENERGY INC. $32 (Toronto symbol CVE; Conservative Growth Portfolio, Resources sector; Shares outstanding: 755.7 million; Market cap: $24.2 billion; Price-to-sales ratio: 1.3; Dividend yield: 2.8%; TSINetwork Rating: Extra Risk; www.cenovus.com) operates three heavy oil projects in Alberta and one in Saskatchewan. It gets about half of its output from the oil sands. Conventional oil and natural gas wells supply the other half.

U.S.-based ConocoPhillips (New York symbol COP) owns 50% of Cenovus’s main Foster Creek and Christina Lake oil sands projects in Alberta.

These properties produce heavy bitumen, which Cenovus ships to its 50%-owned refineries in Illinois and Texas. ConocoPhillips recently spun off its refining operations as a separate company called Phillips 66 (New York symbol PSX). This new firm owns the other 50% of these refineries.

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These three leading oil producers are aggressively expanding their oil sands operations. These projects are more expensive to develop than conventional deposits, and the recent drop in oil prices could hurt their profitability. However, their reserves should last for decades, and their operating costs tend to fall after they start up. Moreover, these companies’ refineries, which convert oil into gasoline and other fuels, help shield them from volatile oil and gas prices. That’s because refineries pay less for crude when oil prices decline; this enhances their profits. SUNCOR ENERGY INC. $32 (Toronto symbol SU; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.5 billion; Market cap: $48.0 billion; Price-to-sales ratio: 1.2; Dividend yield: 1.6%; TSINetwork Rating: Average; www.suncor.com) became Canada’s largest integrated oil company in 2009, when it merged with Petro- Canada....

$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ ENCANA CORP. $20 (Toronto symbol ECA; Conservative Growth Portfolio, Resources sector; Shares outstanding: 736.3 million; Market cap: $14.7 billion; Price-to-sales ratio: 1.6; Dividend yield: 4.1%; TSINetwork Rating: Average; www.encana.com) is one of North America’s largest natural gas producers. Its reserves should last over 11 years.

The company took its present form on December 1, 2009, after the old EnCana Corp. split itself into two new companies: the new Encana, which focuses on natural gas, and Cenovus Energy (Toronto symbol CVE), which specializes in oil sands projects, oil refineries and conventional natural gas.

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ENCANA CORP. (Toronto symbol ECA; www.encana.com) is one of North America’s largest natural gas producers. Its reserves should last over 11 years. The company took its present form on December 1, 2009, after the old EnCana Corp. split itself into two new companies: the new Encana, which focuses on natural gas, and Cenovus Energy (Toronto symbol CVE), which specializes in oil sands projects, oil refineries and conventional natural gas....

ENCANA CORP. $20 (Toronto symbol ECA; Conservative Growth Portfolio, Resources sector; Shares outstanding: 736.3 million; Market cap: $14.7 billion; Price-to-sales ratio: 1.6; Dividend yield: 4.1%; TSINetwork Rating: Average; www.encana.com) is one of North America’s largest natural gas producers. Its reserves should last over 11 years. The company took its present form on December 1, 2009, after the old EnCana Corp. split itself into two new companies: the new Encana, which focuses on natural gas, and Cenovus Energy (Toronto symbol CVE), which specializes in oil sands projects, oil refineries and conventional natural gas. Low gas prices weighed on results ...

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