encana
Toronto symbol ECA, and New York symbol ECA, is a leading North American producer of natural gas and oil.
ENCANA CORP. $19.59 (Toronto symbol ECA; Shares outstanding: 737.6 million; Market cap: $14.4 billion; TSINetwork Rating: Average; Dividend yield: 4.1%; www.encana.com) is selling two plants in the Cutbank Ridge area of northeastern B.C. to VERESEN $15.31 (Toronto symbol VSN; Shares outstanding: 169.8 million; Market cap: $2.6 billion; TSINetwork Rating: Extra Risk; Dividend yield: 6.5%). Veresen owns and operates energy pipelines and processing plants across North America. These plants process natural gas from nearby wells. The sale also includes 370 kilometres of pipelines. Veresen will pay Encana $920 million (Canadian) when the deal closes in early 2012. Including this deal, Encana sold or agreed to sell $3.5 billion U.S. of non-essential assets in 2011. The sales are part of its plan to focus on its main gas-producing properties in Alberta, B.C., Wyoming, Michigan, Colorado and Louisiana....
Our top conservative pick for shale gas would be Encana, $19.49, symbol ECA on Toronto (Shares outstanding: 737.6 million; Market cap: $14.4 billion; www.encana.com), a recommendation of our Successful Investor newsletter. Encana agreed to sell $3.5 billion U.S. of non-essential assets in 2011. The sales are part of the company’s plan to focus on its main gas-producing properties in Alberta, B.C., Wyoming, Michigan, Colorado and Louisiana. Many of these holdings contain shale gas. Encana is a buy....
A: Vanoil Energy, $0.35, symbol VEL on Toronto (Shares outstanding: 30.9 million; Market cap: $10.8 million; www.vanoil.ca), holds oil and gas assets in Kenya and Rwanda. Blocks 3A and 3B, which cover 29,412 square kilometres, are in Kenya. Vanoil also has an exclusive licence to 1,631 square kilometres of oil and gas properties in the East Kivu Graben in Rwanda. This area is at the southern extension of the Albertine Graben, where Heritage and Tullow Oil made major discoveries in neighbouring Uganda. Simba Energy, $0.08, symbol SMB on Toronto (Shares outstanding: 110.1 million; Market cap: $8.8 million; www.simbaenergy.ca), is exploring for oil on what it sees as overlooked properties in Africa, including parts of Liberia, Mali, Ghana, Guinea, Kenya and others....
BCE INC., $40.74, Toronto symbol BCE, is teaming up with Rogers Communications Inc. (Toronto symbol RCI.B) to buy 75% of Maple Leaf Sports and Entertainment (MLSE). This is the private company that owns several professional sports teams, including the Toronto Maple Leafs (hockey), Toronto Raptors (basketball) and Toronto FC (soccer). MLSE also owns the Air Canada Centre arena in downtown Toronto, as well as specialty TV channels such as Leafs TV. BCE, in combination with the trust fund that manages its employees’ pension plan, will pay a total of $533 million for 37.5% of MLSE. Rogers will also acquire 37.5%. A private investor will own the remaining 25%. The deal should close in mid-2012. Unlike most sports teams, MLSE is profitable. This investment will also guarantee BCE access to live games and other high-demand content for its TV channels, radio stations and web sites....
ENCANA CORP. $20.55 (Toronto symbol ECA; Shares outstanding: 737.6 million; Market cap: $15.2 billion; TSINetwork Rating: Average; Dividend yield: 3.8%; www.encana.com) has agreed to sell some of its natural gas properties in the Barnett Shale area of northern Texas to EnerVest Ltd. for $975 million (all amounts except share price and market cap in U.S. dollars). The sale is part of Encana’s ongoing plan to focus on its main properties in Alberta, B.C., Wyoming, Colorado and Louisiana. Including this sale, Encana has sold $1.7 billion of properties in 2011. That’s within its target of $1 billion to $2 billion....
Encana (which focuses on natural gas) and Cenovus (which focuses on oil) took their present form in December 2009 following the breakup of the old EnCana Corp. New shale gas discoveries have pushed down gas prices. That has hurt the new Encana. Cenovus has fared better, due to stronger oil prices. We still see both as buys due to their their high-quality reserves and strong cash flows. ENCANA CORP. $18 (New York symbol ECA; Conservative Growth Portfolio, Resources sector; Shares outstanding: 735.4 million; Market cap: $13.2 billion; Price-to-sales ratio: 1.9; Dividend yield: 4.4%; TSINetwork Rating: Average; www.encana.com) has agreed to sell some of its natural gas properties in northern Texas for $975 million. The sale is part of the company’s ongoing plan to focus on its main properties in Alberta, B.C., Wyoming, Colorado and Louisiana. Including this sale, Encana will have sold $1.7 billion of properties in 2011. That’s within its original target of $1 billion to $2 billion....
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: 1.9; Dividend yield: 4.1%; TSINetwork Rating: Average; www.encana.com) has agreed to sell some of its natural gas properties in northern Texas for $975 million (all amounts except share price and market cap in U.S. dollars). To put that in context, Encana earned $171 million, or $0.23 a share, in the three months ended September 30, 2011. The sale is part of Encana’s ongoing plan to focus on its main properties in Alberta, B.C., Wyoming, Colorado and Louisiana. Including this sale, Encana has sold $1.7 billion of properties in 2011. That’s within its target of $1 billion to $2 billion....
ENCANA CORP. $21.05 (Toronto symbol ECA; Shares outstanding: 737.6 million; Market cap: $15.5 billion; TSINetwork Rating: Average; Dividend yield: 3.7%; www.encana.com) aims to triple its production of natural gas liquids (NGLs), such as propane and butane. To that end, the company has entered into a new long-term processing deal with PEMBINA PIPELINE $27.17 (Toronto symbol PPL; Shares outstanding: 165.7 million; Market cap: $4.5 billion; TSINetwork Rating: Extra Risk; Divd. yield: 5.7%; www.pembina.com). Pembina will expand its Resthaven liquids extraction plant in Alberta to extract NGLs from Encana’s gas. Prices for NGLs have surged recently. Taking advantage of rising NGL prices will help Encana offset lower prices for regular natural gas....
BANK OF NOVA SCOTIA, $51.73, Toronto symbol BNS, has agreed to buy 51% of Banco Colpatria, Colombia’s fifth-largest bank, with 175 branches and 308 automated teller machines. Bank of Nova Scotia will pay $500 million U.S. plus 10 million common shares. That gives the deal a value of roughly $1 billion U.S., which is equal to 85% of the $1.2 billion (Canadian), or $1.11 a share, that the bank earned in the three months ended July 31, 2011. After the deal closes in December 2011, Bank of Nova Scotia will merge its existing wholesale banking operations in Colombia, which focus on corporate clients, with Banco Colpatria....
ENCANA CORP. $21 (Toronto symbol ECA; Conservative Growth Portfolio, Resources sector; Shares outstanding: 736.3 million; Market cap: $15.4 billion; Price-to-sales ratio: 1.9; Dividend yield: 3.9%; TSINetwork Rating: Average; www.encana.com) is down 29% since the start of 2011. The company is partly a victim of its own success. Encana was an early pioneer in the development of unconventional gas reserves such as shale gas, which is natural gas that is trapped in rock formations. New technologies that Encana helped develop have cut the cost of extracting shale gas, which has let other companies expand their own shale gas production. This has greatly added to the supply of natural gas, and pushed down gas prices. However, like most commodities, gas prices are inherently volatile. In particular, one cold winter could quickly push up prices....