encana
Toronto symbol ECA, and New York symbol ECA, is a leading North American producer of natural gas and oil.
U.S. oil production is up 40% since 2008. That’slargely because of new technologies like hydraulicfracturing, or fracking. This involves injecting water,sand and chemicals to break up shale and other tightrock formations and allow access to the oil and gas.
The global economy continues to recover from therecession, so rising demand from industry and consumersshould help stabilize oil and gas prices, even asoutput from shale increases.
The best way to profit from this volatile industry isthrough companies with high-quality reserves and diverseoperations, such as these four....
The global economy continues to recover from therecession, so rising demand from industry and consumersshould help stabilize oil and gas prices, even asoutput from shale increases.
The best way to profit from this volatile industry isthrough companies with high-quality reserves and diverseoperations, such as these four....
ENCANA CORP. $17 (New York symbol ECA;Conservative Growth Portfolio, Resources sector;Shares outstanding: 735.5 million; Market cap: $12.5billion; Price-to-sales ratio: 2.9; Dividend yield: 4.7%;TSINetwork Rating: Average; www.encana.com) is amajor North American natural gas producer that isincreasing its oil output.
In the quarter ended March 31, 2013, Encana’s oilproduction rose 48.5%, to 43,500 barrels a day from29,300 a year earlier. Encana expects to increase its oilproduction to 70,000 to 75,000 barrels a day by theend of 2013. It sold some of its U.S. gas properties in2012, so gas production fell 12.1% in the quarter. Gasstill accounted for 92% of Encana’s output.
Due to lower oil and gas prices, Encana’s earningsfell 25.4%, to $179 million from $240 million a yearearlier. Earnings per share declined 27.3%, to $0.24from $0.33, on slightly fewer shares outstanding.These figures exclude several unusual items, particularlygains related to hedging. Cash flow per share fell43.2%, to $0.79 from $1.39. Revenue declined 41.1%,to $1.1 billion from $1.8 billion.
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In the quarter ended March 31, 2013, Encana’s oilproduction rose 48.5%, to 43,500 barrels a day from29,300 a year earlier. Encana expects to increase its oilproduction to 70,000 to 75,000 barrels a day by theend of 2013. It sold some of its U.S. gas properties in2012, so gas production fell 12.1% in the quarter. Gasstill accounted for 92% of Encana’s output.
Due to lower oil and gas prices, Encana’s earningsfell 25.4%, to $179 million from $240 million a yearearlier. Earnings per share declined 27.3%, to $0.24from $0.33, on slightly fewer shares outstanding.These figures exclude several unusual items, particularlygains related to hedging. Cash flow per share fell43.2%, to $0.79 from $1.39. Revenue declined 41.1%,to $1.1 billion from $1.8 billion.
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H&R REIT (Toronto symbol HR.UN; www.hr-reit.com) owns stakes in 41 office buildings, 112 industrial properties and 163 shopping malls in Canada, principally in the Greater Toronto Area. In the past two years it also added two major purchases in the U.S: Two Gotham Center in New York and the Hess Tower in Houston. The trust has a 99.0% occupancy rate....
H&R REIT $22.11 (Toronto symbol HR.UN; Units outstanding: 258.3 million; Market cap: $16.9 billion; TSINetwork Rating: Extra Risk; Dividend yield: 5.8%; www.hr-reit.com) owns stakes in 40 office buildings, 112 industrial properties and 163 shopping malls across Canada....
VERESEN $13.32 (Toronto symbol VSN; Shares outstanding: 198.4 million; Market cap: $2.7 billion; TSINetwork Rating: Average; Yield: 7.5%) owns pipelines, power plants and gas processing facilities across North America. A major holding is 50% of the Alliance gas line, which runs 3,000 kilometres between Chicago and Fort St. John, B.C. Enbridge owns the other 50%. Veresen also owns the Alberta Ethane Gathering System, and Veresen and Enbridge together hold 85.4% of the Aux Sable NGL plant.
In February 2012, Veresen paid Encana Corp. $920 million for the Hythe/Steeprock natural gas gathering and processing complex. Encana signed a long-term deal to buy most of this facility’s gas.
To diversify beyond pipelines and gas-processing plants, Veresen continues to expand its power generation business. It now owns hydroelectric facilities in New York State and B.C.; natural gasfired plants in Ontario, California and Colorado; and waste-heat plants in B.C. and Saskatchewan.
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In February 2012, Veresen paid Encana Corp. $920 million for the Hythe/Steeprock natural gas gathering and processing complex. Encana signed a long-term deal to buy most of this facility’s gas.
To diversify beyond pipelines and gas-processing plants, Veresen continues to expand its power generation business. It now owns hydroelectric facilities in New York State and B.C.; natural gasfired plants in Ontario, California and Colorado; and waste-heat plants in B.C. and Saskatchewan.
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Growth by acquisition can be risky, as newly purchased companies may develop unforeseen problems, especially in an unsettled economy. However, Veresen aims to cut that risk by adding plants with long-term contracts already in place.
VERESEN (Toronto symbol VSN; www.vereseninc.com) owns pipelines, power plants and gas processing facilities across North America. A major holding is 50% of the Alliance gas line, which runs 3,000 kilometres between Chicago and Fort St. John, B.C. Enbridge (Toronto symbol ENB) owns the other 50%....
VERESEN (Toronto symbol VSN; www.vereseninc.com) owns pipelines, power plants and gas processing facilities across North America. A major holding is 50% of the Alliance gas line, which runs 3,000 kilometres between Chicago and Fort St. John, B.C. Enbridge (Toronto symbol ENB) owns the other 50%....
Growth by acquisition can be risky, as newly purchased companies may develop unforeseen problems, especially in an unsettled economy. But Pembina cut that risk with last year’s purchase of a rival in a business where it’s already a leader. Meanwhile, Veresen aims to add plants with longterm contracts already in place.
PEMBINA PIPELINE $32.69 (Toronto symbol PPL; Shares outstanding: 294.9 million; Market cap: $10.2 billion; TSINetwork Rating: Average; Divd....
PEMBINA PIPELINE $32.69 (Toronto symbol PPL; Shares outstanding: 294.9 million; Market cap: $10.2 billion; TSINetwork Rating: Average; Divd....
ENCANA CORP. $18.24 (Toronto symbol ECA; Shares outstanding: 736.3 million; Market cap: $13.7 billion; TSINetwork Rating: Average; Dividend yield: 4.5%; www.encana.com) continues to increase its oil production in response to low natural gas prices.
In the three months ended March 31, 2013, the company’s oil output rose 48.5%, to 43,500 barrels a day from 29,300 a year earlier....
In the three months ended March 31, 2013, the company’s oil output rose 48.5%, to 43,500 barrels a day from 29,300 a year earlier....
ENCANA CORP. $18.66 (Toronto symbol ECA; Shares outstanding: 736.3 million; Market cap: $13.7 billion; TSINetwork Rating: Average; Dividend yield: 4.4%; www.encana.com) is one of North America’s largest natural gas producers. Its proven reserves should last over 11 years.
In the three months ended December 31, 2012, Encana’s cash flow per share fell 17.3%, to $1.10 from $1.33 a year earlier (all amounts except share price and market cap in U.S. dollars).
Natural gas accounts for 95% of Encana’s production. In response to lower gas prices, the company cut its output by 14.8% during the quarter, to 2.9 billion cubic feet per day from 3.5 billion; this was the main reason for the lower cash flow.
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In the three months ended December 31, 2012, Encana’s cash flow per share fell 17.3%, to $1.10 from $1.33 a year earlier (all amounts except share price and market cap in U.S. dollars).
Natural gas accounts for 95% of Encana’s production. In response to lower gas prices, the company cut its output by 14.8% during the quarter, to 2.9 billion cubic feet per day from 3.5 billion; this was the main reason for the lower cash flow.
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TECK RESOURCES LTD., $26.27, Toronto symbol TCK.B, reported lower quarterly revenue and earnings this week. That’s mainly because slowing industrial activity in China and elsewhere has hurt prices for its metallurgical coal, which is a key ingredient in steelmaking. Prices of Teck’s other commodities, such as copper and zinc, also declined. In the three months ended March 31, 2013, Teck earned $328 million, or $0.56 a share. These figures exclude unusual items, such as gains and losses on asset sales. On that basis, the latest earnings beat the consensus estimate of $0.41 a share. However, they are down 39.7% from $544 million, or $0.93 a share, a year earlier. Revenue fell 8.5%, to $2.3 billion from $2.5 billion. Even with the decline, the latest figure also beat the consensus estimate of $2.2 billion....