encana
Toronto symbol ECA, and New York symbol ECA, is a leading North American producer of natural gas and oil.
RIOCAN REAL ESTATE INVESTMENT TRUST $27.64 (Toronto symbol REI.UN; Units outstanding: 304.4 million; Market cap: $8.4 billion; TSINetwork Rating: Average; Dividend yield: 5.1%; 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....
investment trust (REIT), with interests in 340 shopping malls containing over 82 million square feet of leasable area....
CANADIAN PACIFIC RAILWAY $190.72 (Toronto symbol CP; Shares o/s: 175.1 million; Market cap: $32.7 billion; TSINetwork Rating: Average; Dividend yield: 0.7%; www.cpr.ca) expects to ship 140,000 to 210,000 carloads of crude oil a year by the end of 2015, up from 90,000 in 2013.
Higher crude shipments and improving efficiency should increase CP’s 2014 earnings by 30% over 2013, to $8.35 a share....
Higher crude shipments and improving efficiency should increase CP’s 2014 earnings by 30% over 2013, to $8.35 a share....
ENCANA CORP. $26 (Toronto symbol ECA; Conservative Growth Portfolio, Resources sector; Shares outstanding: 740.9 million; Market cap: $19.3 billion; Price-to-sales ratio: 3.2; Dividend yield: 1.2%; TSINetwork Rating: Average; www.encana.com) has agreed to buy shale oil properties in the Eagle Ford area of southern Texas for $3.1 billion (all amounts except share price and market cap in U.S. dollars). A separate deal to sell natural gas fields in eastern Texas for $530 million will help pay for this purchase.
Including Eagle Ford, Encana now has six core properties. The other five are: Montney (B.C.), Duvernay (Alberta), DJ Basin (Colorado), San Juan Basin (New Mexico) and the Tuscaloosa Marine Shale (Louisiana). All of these areas contain large amounts of oil and natural gas liquids, such as butane and propane. That cuts Encana’s exposure to weak gas prices.
The stock is up 35% since Encana said it would expand its oil production in November 2013. Even so, it trades at a moderate 7.2 times the company’s projected 2014 cash flow of $3.31 a share.
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Including Eagle Ford, Encana now has six core properties. The other five are: Montney (B.C.), Duvernay (Alberta), DJ Basin (Colorado), San Juan Basin (New Mexico) and the Tuscaloosa Marine Shale (Louisiana). All of these areas contain large amounts of oil and natural gas liquids, such as butane and propane. That cuts Encana’s exposure to weak gas prices.
The stock is up 35% since Encana said it would expand its oil production in November 2013. Even so, it trades at a moderate 7.2 times the company’s projected 2014 cash flow of $3.31 a share.
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TORONTO-DOMINION BANK, $53.39, Toronto symbol TD, reported better-than-expected quarterly earnings this week, thanks to steady loan demand in Canada and the U.S. It’s also profiting from its recent deal with Aimia (Toronto symbol AIM) to become the main credit card issuer for the popular Aeroplan travel-reward program. In the quarter ended April 30, 2014, TD’s earnings rose 13.5%, to $2.1 billion from $1.8 billion a year earlier. Due to fewer shares outstanding, per-share earnings gained 14.7%, to $1.09 from $0.95. These figures exclude unusual items, such as costs related to the new Aeroplan card business. On that basis, the latest earnings beat the consensus estimate of $1.02 a share. Revenue rose 12.5%, to $7.4 billion from $6.6 billion. In addition to the new Aeroplan deal, TD is benefiting from last year’s purchase of retailer Target Corp.’s U.S. credit card portfolio. As well, higher debt-underwriting volumes and merger and acquisition fees pushed up revenue at TD’s wholesale banking division by 5.4%....
ENCANA CORP. $25.39 (Toronto symbol ECA; Shares outstanding: 740.9 million; Market cap: $19.0 billion; TSINetwork Rating: Average; Dividend yield: 1.2%; www.encana.com) has released more details regarding its plan to spin off its Clearwater oil and gas properties in southern Alberta.
The new company, called PrairieSky Royalty, will hold the oil and gas rights to 5.2 million acres. PrairieSky will not drill wells or explore for new reserves. Instead, it will collect royalties from other producers. That should generate steady cash flows for monthly dividends.
Encana plans to complete an initial public offering for PrairieSky in the next two to three months—although it will hang on to a majority stake. In the future, it may hand out that stake as a special dividend to its shareholders.
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The new company, called PrairieSky Royalty, will hold the oil and gas rights to 5.2 million acres. PrairieSky will not drill wells or explore for new reserves. Instead, it will collect royalties from other producers. That should generate steady cash flows for monthly dividends.
Encana plans to complete an initial public offering for PrairieSky in the next two to three months—although it will hang on to a majority stake. In the future, it may hand out that stake as a special dividend to its shareholders.
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CAE INC., $14.55, Toronto symbol CAE, is the world’s leading maker of flight simulators for commercial airlines. It also makes simulators for militaries and operates pilot-training schools. In its fiscal 2014 fourth quarter, which ended March 31, 2014, CAE’s earnings rose 39.2%, to $60.0 million from $43.1 million a year earlier. Per-share earnings gained 35.3%, to $0.23 from $0.17, on more shares outstanding. That beat the consensus estimate of $0.20. Revenue rose 3.1%, to $583.4 million from $565.6 million. CAE received orders for eight flight simulators during the quarter, which brought its full-year total to a new record of 48. Since the quarter ended, it has sold an additional four simulators. The company’s military-related businesses also continue to win new contracts....
ENCANA CORP. $26 (Toronto symbol ECA; Conservative Growth Portfolio, Resources sector; Shares outstanding: 740.9 million; Market cap: $19.3 billion; Price-to-sales ratio: 3.2; Dividend yield: 1.2%; TSINetwork Rating: Average; www.encana.com) has agreed to buy shale oil properties in the Eagle Ford area of southern Texas for $3.1 billion (all amounts except share price and market cap in U.S....
ENCANA CORP. $25.39 (Toronto symbol ECA; Shares outstanding: 740.9 million; Market cap: $19.0 billion; TSINetwork Rating: Average; Dividend yield: 1.2%; www.encana.com) has released more details regarding its plan to spin off its Clearwater oil and gas properties in southern Alberta.
The new company, called PrairieSky Royalty, will hold the oil and gas rights to 5.2 million acres....
The new company, called PrairieSky Royalty, will hold the oil and gas rights to 5.2 million acres....
PLEASE NOTE: Our next Hotline will go out on Friday, April 25, 2014. POTASH CORP. OF SASKATCHEWAN, $38.45, Toronto symbol POT, rose 5% this week on speculation that BHP Billiton (New York symbol BHP) may launch a second takeover offer for the company. (BHP is a recommendation of Wall Street Stock Forecaster, our newsletter that focuses on U.S. stocks.) In 2010, BHP offered to buy Potash Corp. for $43.33 U.S. a share (adjusted for a 3-for-1 stock split in February 2011). However, Ottawa ultimately blocked the takeover, as it did not provide a “net benefit” to Canada under the Investment Canada Act....
PLEASE NOTE: Due to the Good Friday holiday, our next Hotline will go out on Thursday, April 17, 2014. BANK OF NOVA SCOTIA, $64.24, Toronto symbol BNS, has formally changed the name of its ING Direct subsidiary to Tangerine (www.tangerine.ca). The bank bought ING Direct from its Netherlands-based parent, ING Group, in November 2012. This business provides no-fee banking services to 1.9 million clients, mainly over the Internet. The new name will let Bank of Nova Scotia keep using the orange colour associated with the ING Direct brand....