monthly dividend
PENGROWTH ENERGY CORP. $6.37 (www.pengrowth.com) has gained nearly 30% in the past three months. That’s mainly because the company has successfully completed its plan to sell some of its less important oil and gas properties in Western Canada. The cash from these sales will help Pengrowth speed up the development of its Lindbergh oil sands project in Alberta....
SNC-LAVALIN GROUP INC. $43 (www.snclavalin.com) continues to win new engineering contracts despite last year’s bribery scandal. ZADCO, a joint venture headed by Abu Dhabi’s stateowned oil company, recently hired SNC to design a major addition to its oil refinery....
Keyera Corp. $57.05, symbol KEY on Toronto (Shares outstanding: 78.5 million; Market cap: $4.5 billion; www.keyera.com), provides a number of services to the natural gas industry, including gathering, processing, storage and transportation. The company reported cash flow of $1.01 a share in the three months ended June 30, 2013, up 29.5% from $0.78 a share a year earlier. Keyera raised its monthly dividend by 11.1%, to $0.20 a share from $0.18, beginning with the September 2013 payment. The stock now yields 4.2%....
PEYTO EXPLORATION & DEVELOPMENT CORP. $28.10 (Toronto symbol PEY; Shares outstanding: 148.5 million; Market cap: $4.2 billion; TSINetwork Rating: Extra Risk; Dividend yield: 3.4%; www.peyto.com) produces and explores for oil and natural gas in Alberta. Its average daily production of 58,145 barrels of oil equivalent is 89% gas and 11% oil.
In the three months ended June 30, 2013, the company’s cash flow was $0.74 a share, up 57.4% from $0.47 a year earlier. That’s because Peyto increased its production by 40.6% from the yearearlier quarter, and natural gas prices rose.
The stock trades at 9.1 times Peyto’s forecast 2013 cash flow of $3.12 a share. The company’s long-term debt of $750 million is a low 17.9% of its $4.2-billion market cap.
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In the three months ended June 30, 2013, the company’s cash flow was $0.74 a share, up 57.4% from $0.47 a year earlier. That’s because Peyto increased its production by 40.6% from the yearearlier quarter, and natural gas prices rose.
The stock trades at 9.1 times Peyto’s forecast 2013 cash flow of $3.12 a share. The company’s long-term debt of $750 million is a low 17.9% of its $4.2-billion market cap.
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PEMBINA PIPELINE $32.36 (Toronto symbol PPL; Shares outstanding: 310.3 million; Market cap: $10.1 billion; TSINetwork Rating: Average; Div. yield: 5.2%; www.pembina.com) owns pipelines that carry half of Alberta’s conventional oil output, 30% of Western Canada’s natural gas liquids (NGLs) and almost all of B.C.’s conventional oil production.
In the quarter ended June 30, 2013, Pembina’s revenue rose 34.9%, to $1.2 billion from $870.9 million a year earlier. In April 2012, the company paid $3.2 billion for rival Provident Energy, which extracts, transports and stores NGLs. Provident was the main reason for the higher revenue.
Cash flow rose 60.9%, to $144.0 million from $89.5 million. Cash flow per share gained 51.6%, to $0.47 from $0.31, because Pembina issued more shares to pay for Provident.
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In the quarter ended June 30, 2013, Pembina’s revenue rose 34.9%, to $1.2 billion from $870.9 million a year earlier. In April 2012, the company paid $3.2 billion for rival Provident Energy, which extracts, transports and stores NGLs. Provident was the main reason for the higher revenue.
Cash flow rose 60.9%, to $144.0 million from $89.5 million. Cash flow per share gained 51.6%, to $0.47 from $0.31, because Pembina issued more shares to pay for Provident.
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AltaGas Ltd., $34.99, symbol ALA on Toronto (Shares outstanding: 118.5 million; Market cap: $4.2 billion; www.altagas.ca), processes, transmits, stores and markets natural gas for producers; generates power from gas-fired, coal-fired, wind, biomass and hydroelectric plants; and operates natural gas distribution utilities. Excluding one-time items, AltaGas earned $35.5 million, or $0.30 a share, in the three months ended June 30, 2013. That’s up sharply from $10.4 million, or $0.12 a share, a year earlier. Cash flow per share gained 57.8%, to $0.71 from $0.45. Revenue increased 68.3%, to $458.6 million from $272.2 million. The improved results mostly came from Semco Holding Corporation, which operates natural gas utilities in Alaska and Michigan. In August 2012, AltaGas bought Semco for $1.14 billion, which was its biggest acquisition to date....
Pat McKeough responds to many requests from members of his Inner Circle for specific advice on specific stocks and other investments as well as questions on investment strategy and the economy. Every week, his comments and recommendations on the most intriguing questions of the past week go out to all Inner Circle members. And each week, we offer you one of the highlights from these Q&A sessions. While we reserve our buy-hold-sell advice for Inner Circle members, these excerpts provide a great deal of information and analysis on stocks we’ve covered for members of Pat’s Inner Circle....
Growth by acquisition can be risky, as newly purchased companies may develop unforeseen problems, especially in an unsettled economy. But Pembina lowered that risk with last year’s purchase of a rival in a business where it’s already a leader. Meanwhile, Veresen aims to add power plants with long-term contracts already in place.
PEMBINA PIPELINE $32.36 (Toronto symbol PPL; Shares outstanding: 310.3 million; Market cap: $10.1 billion; TSINetwork Rating: Average; Div....
PEMBINA PIPELINE $32.36 (Toronto symbol PPL; Shares outstanding: 310.3 million; Market cap: $10.1 billion; TSINetwork Rating: Average; Div....
PEYTO EXPLORATION & DEVELOPMENT CORP. $28.10 (Toronto symbol PEY; Shares outstanding: 148.5 million; Market cap: $4.2 billion; TSINetwork Rating: Extra Risk; Dividend yield: 3.4%; www.peyto.com) produces and explores for oil and natural gas in Alberta....
PENGROWTH ENERGY CORP. (Toronto symbol PGF; www.pengrowth.com) produces oil and natural gas in Western Canada and off the Nova Scotia coast. Gas accounts for about 60% of its production; the other 40% is oil....
