encana
Toronto symbol ECA, and New York symbol ECA, is a leading North American producer of natural gas and oil.
ENCANA CORP. $23 (New York symbol ECA; Conservative Growth Portfolio, Resources sector; Shares outstanding: 741.0 million; Market cap: $17.0 billion; Price-to-sales ratio: 2.6; Dividend yield: 1.2%; TSINetwork Rating: Average; www.encana.com) focuses on six core properties: Montney (B.C.), Duvernay (Alberta), DJ Basin (Colorado), San Juan Basin (New Mexico); Tuscaloosa Marine Shale (Louisiana) and Eagle Ford (Texas).
These areas contain large amounts of oil and natural gas liquids, such as butane and propane. That cuts Encana’s exposure to weak natural gas prices. The company recently set up PriarieSky Royalty Ltd. (Toronto symbol PSK) as a new firm to hold its Clearwater properties in southern Alberta. PriarieSky doesn’t drill wells or explore for new reserves. Instead, it collects royalties from other oil and gas producers.
Encana sold 46% of PrairieSky to the public for $1.5 billion. In the future, it could hand out its remaining 54% stake to its investors as a special dividend.
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These areas contain large amounts of oil and natural gas liquids, such as butane and propane. That cuts Encana’s exposure to weak natural gas prices. The company recently set up PriarieSky Royalty Ltd. (Toronto symbol PSK) as a new firm to hold its Clearwater properties in southern Alberta. PriarieSky doesn’t drill wells or explore for new reserves. Instead, it collects royalties from other oil and gas producers.
Encana sold 46% of PrairieSky to the public for $1.5 billion. In the future, it could hand out its remaining 54% stake to its investors as a special dividend.
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Encana took its present form on December 1, 2009, after the old EnCana Corp. split itself into two new firms: the new Encana, which focuses on gas, and Cenovus Energy, which specializes in oil sands. Lower gas prices have pushed Encana’s shares down by about 20% since the split. Oil prices have risen, however, and Cenovus’s stock is up about 28%. ENCANA CORP. $22.86 (Toronto symbol ECA; Shares outstanding: 741.0 million; Market cap: $16.9 billion; TSINetwork Rating: Average; Dividend yield: 1.3%; www.encana.com) is one of North America’s largest natural gas producers. Encana continues to benefit from its new plan to focus on six main properties: Montney (B.C.), Duvernay (Alberta), DJ Basin (Colorado), San Juan Basin (New Mexico), the Tuscaloosa Marine Shale (Louisiana) and Texas’s Eagle Ford oil shale....
ENCANA CORP. $24 (Toronto symbol ECA; Conservative Growth Portfolio, Resources sector; Shares outstanding: 740.9 million; Market cap: $17.8 billion; Price-to-sales ratio: 2.6; Dividend yield: 1.3%; TSINetwork Rating: Average; www.encana.com) has agreed to sell its operations in Alberta’s Bighorn area to privately held Jupiter Resources.
Encana will get $1.8 billion when the sale closes in the next few weeks (all amounts except share price and market cap in U.S. dollars). To put that in context, the company earned $515 million, or $0.70 a share, in the quarter ended March 31, 2014.
The company is also selling a gas-fired power plant and its 50% stake in a second plant, both in Alberta, for an undisclosed sum.
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Encana will get $1.8 billion when the sale closes in the next few weeks (all amounts except share price and market cap in U.S. dollars). To put that in context, the company earned $515 million, or $0.70 a share, in the quarter ended March 31, 2014.
The company is also selling a gas-fired power plant and its 50% stake in a second plant, both in Alberta, for an undisclosed sum.
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ENCANA CORP. $24 (Toronto symbol ECA; Conservative Growth Portfolio, Resources sector; Shares outstanding: 740.9 million; Market cap: $17.8 billion; Price-to-sales ratio: 2.6; Dividend yield: 1.3%; TSINetwork Rating: Average; www.encana.com) has agreed to sell its operations in Alberta’s Bighorn area to privately held Jupiter Resources. Encana will get $1.8 billion when the sale closes in the next few weeks (all amounts except share price and market cap in U.S. dollars). To put that in context, the company earned $515 million, or $0.70 a share, in the quarter ended March 31, 2014. The company is also selling a gas-fired power plant and its 50% stake in a second plant, both in Alberta, for an undisclosed sum....
ENCANA CORP. $25.05 (Toronto symbol ECA; Shares outstanding: 741.0 million; Market cap: $17.8 billion; TSINetwork Rating: Average; Dividend yield: 1.3%; www.encana.com) has completed its plan to sell shares of subsidiary PrairieSky Royalty Ltd. (Toronto symbol PSK) to the public. Encana sold the shares at $28 each. They have since jumped 40%, to $39.23. PrairieSky Royalty owns the oil and natural gas rights to 5.2 million acres in Alberta. It will not drill wells or explore for new reserves. Instead, it will collect royalties from other oil and gas producers. That should generate steady cash flows for monthly dividends. The sale proceeds were $1.67 billion, and Encana now owns 54% of PrairieSky. In the future, it may hand out that stake as a special dividend to its shareholders....
CAE INC., $14.29, Toronto symbol CAE, has won new contracts to supply flight simulators and related services and equipment to several military clients, including the German and New Zealand air forces. In all, these deals are worth $110 million, or 5% of CAE’s $2.1 billion of annual revenue. The company’s military-related businesses supply 40% of its revenue, which cuts its reliance on cyclical commercial airlines. CAE is our #1 buy for 2014....
H&R REIT $23.38 (Toronto symbol HR.UN; Units outstanding: 271.4 million; Market cap: $6.3 billion; TSINetwork Rating: Extra Risk; Dividend yield: 5.8%; www.hr-reit.com) owns stakes in 41 office buildings, 112 industrial properties and 168 shopping malls across Canada. The trust has a 97.9% occupancy rate.
In March 2013, H&R finished building the Bow, a $1.33-billion, two-million-square-foot office complex in Calgary. Encana Corp. has leased the entire building for 25 years.
In April 2013, H&R completed the purchase of 27 properties from Primaris REIT for $3.1 billion. These assets include the 567,000-square-foot Dufferin Mall in Toronto’s west end.
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In March 2013, H&R finished building the Bow, a $1.33-billion, two-million-square-foot office complex in Calgary. Encana Corp. has leased the entire building for 25 years.
In April 2013, H&R completed the purchase of 27 properties from Primaris REIT for $3.1 billion. These assets include the 567,000-square-foot Dufferin Mall in Toronto’s west end.
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ENCANA CORP. $26 (www.encana.com) has completed its plan to sell shares of subsidiary PrairieSky Royalty Ltd. (Toronto symbol PSK) to the public. PrairieSky owns the oil and natural gas rights to 5.2 million acres in Alberta....
RIOCAN REAL ESTATE INVESTMENT TRUST (Toronto symbol REI.UN; www.riocan.com) is Canada’s largest real estate investment trust (REIT), with interests in 340 shopping malls containing over 82 million square feet of leasable area. That total includes 47 U.S. malls with over 13 million square feet. In the three months ended March 31, 2014, RioCan’s revenue increased 6.4%, to $299 million from $281 million a year earlier. Cash flow per unit rose 2.4%, to $0.42 from $0.41, on more units outstanding. RioCan continues to see growth opportunities in Canada and the U.S. In 2013, it spent $849 million on 32 properties. In the first quarter of 2014, it bought two more for a total of $21 million....
ENCANA CORP. $26 (www.encana.com) has completed its plan to sell shares of subsidiary PrairieSky Royalty Ltd. (Toronto symbol PSK) to the public. PrairieSky owns the oil and natural gas rights to 5.2 million acres in Alberta....