monthly dividend

Surge Energy, $6.03, symbol SGY on Toronto (Shares outstanding: 121.4 million; Market cap: $722.4 million; www.surgeenergy.ca), produces oil and gas in western and eastern Alberta and southwestern Saskatchewan. Its output is 74% oil and 26% gas. In the three months ended June 30, 2013, Surge produced 9,373 barrels of oil equivalent per day, up 1.1% from 9,275 barrels a year earlier. The rise came despite the fact that the company sold some of its less important properties, which produced 680 barrels a day, for $42.8 million U.S. on May 9, 2013. Despite the small increase in production, Surge’s cash flow per share rose 11.8% in the latest quarter, to $0.38 from $0.34 a year earlier, on higher oil and gas prices....

PENGROWTH ENERGY CORP. $5.90 (Toronto symbol PGF; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 517.7 million; Market cap: $3.1 billion; Price-to-sales ratio: 1.9; Dividend yield: 8.1%; TSINetwork Rating: Average; 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.

Rising shale gas production in Canada and the U.S. increased supplies and cut prices from $8.19 per thousand cubic feet in 2008 to $2.38 in 2012. As a result, Pengrowth’s cash flow per share fell 67.1%, from $3.65 in 2008 to $1.20 in 2012.

Due to writedowns and other unusual items, Pengrowth’s earnings have been erratic. Earnings dropped from $1.58 a share (or a total of $395.9 million) in 2008 to $0.32 a share (or $84.9 million) in 2009. Earnings rebounded to $0.76 a share (or $230.3 million) in 2010 but fell to just $0.03 a share (or $12.7 million) in 2012.
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PENGROWTH ENERGY $5.84 (Toronto symbol PGF; Shares outstanding: 516.1 million; Market cap: $3.0 billion; TSINetwork Rating: Average; Dividend yield: 8.2%; www.pengrowth.com) has sold several of its less important oil and gas properties in Western Canada for $700 million.

Including the company’s earlier $316-million sale of its 10.02% interest in the Weyburn oil project in Saskatchewan, Pengrowth has now reached its goal of raising $1 billion through asset sales in 2013.

The cash will help Pengrowth develop its $590-milllion Lindbergh oil sands project in Alberta. It will also help the company pay down its long-term debt, which stood at $1.6 billion on June 30, 2013. That’s equal to 52% of Pengrowth’s $3.1-billion market cap. The monthly dividend of $0.04 a share still seems safe and gives the stock an 8.2% yield.
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BONAVISTA ENERGY $12.98 (Toronto symbol BNP; Shares outstanding: 181.5 million; Market cap: $2.5 billion; TSINetwork Rating: Extra Risk; Dividend yield: 6.5%; www.bonavistaenergy.com) explores for oil and gas in Alberta, Saskatchewan and B.C. Its production is 62% gas and 38% oil.

In the three months ended June 30, 2013, Bonavista’s cash flow per share rose 28.6%, to $0.63 from $0.49 a year earlier. Gas prices increased 67.0%, to $3.64 per thousand cubic feet from $2.18. Production rose 4.4%, to 72,554 barrels of oil equivalent a day (including gas) from 69,506.

Bonavista cut its monthly dividend by 41.7% in January 2013, to $0.07 from $0.12. That’s helping it save cash for exploration and development. The new annual rate of $0.84 a share still yields a high 6.5%. As well, Bonavista now pays out just 37% of its cash flow as dividends, so more cuts are unlikely.
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MCCOY CORP. $6.25 (Toronto symbol MCB; TSINetwork Rating: Speculative) (780-453-8451; www.mccoyglobal.com; Shares outstanding: 26.8 million; Market cap: $167.6 million; Dividend yield: 3.2%) operates through two divisions: Mobile Solutions and Energy Products and Services.

Energy Products and Services sells hydraulic equipment, including power tongs, for drilling rigs....

Secure Energy Services, $13.69, symbol SES on Toronto (Shares outstanding: 108.5 million; Market cap: $1.5 billion; www.secure-energy.ca), provides services to oil and natural gas companies in Western Canada and the U.S., including handling, processing and selling crude oil, supplying drilling fluids and providing recycling services. In the three months ended March 31, 2013, Secure Energy earned $17.8 million, up 18.2% from $15.0 million a year earlier. Earnings per share were unchanged at $0.17, as Secure issued more shares to pay for acquisitions. Revenue rose 27.5%, to $147.1 million from $115.4 million, mostly due to contributions from recently purchased companies. The company pays a monthly dividend of $0.0125 a share. The stock yields 1.1%....

AIMIA INC., $15.77, symbol AIM on Toronto, has finalized its deal for TD Bank to become the primary credit card issuer for Aeroplan, Aimia’s main loyalty program. TD is a recommendation of The Successful Investor, our newsletter that focuses on conservative Canadian investing. Aeroplan is Canada’s largest loyalty program, with over 4.6 million members who collect Aeroplan miles from participating companies. Members can exchange their miles for flights, car rentals, hotel rooms and merchandise. Under this new 10-year deal, which would begin January 1, 2014, TD will launch new credit cards under the Aeroplan Visa banner, including cards for frequent flyers and small businesses....

PENGROWTH ENERGY CORP. $5.90 (Toronto symbol PGF; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 517.7 million; Market cap: $3.1 billion; Price-to-sales ratio: 1.9; Dividend yield: 8.1%; TSINetwork Rating: Average; www.pengrowth.com) produces oil and natural gas in Western Canada and off the Nova Scotia coast....

BELLATRIX EXPLORATION, $7.16, symbol BXE on Toronto, continues to enter into joint ventures to speed up the development of its Cardium shale oil deposits in west-central Alberta. Under the latest agreement, Bellatrix will sell a 50% interest in its producing wells in the Ferrier and Willesden Green area to Daewoo International Corporation and Devonian Natural Resources Private Equity Fund for $52.5 million. These wells produce 268 barrels of oil equivalent per day. To put that in context, Bellatrix’s output averaged 22,102 barrels per day in the latest quarter. Following the sale, Daewoo and Devonian will invest $100 million in a multi-year program to drill 70 new wells on the Ferrier and Willesden Green properties. Bellatrix will match that spending, and the joint-venture partners will share in any new production....

BONAVISTA ENERGY $12.98 (Toronto symbol BNP; Shares outstanding: 181.5 million; Market cap: $2.5 billion; TSINetwork Rating: Extra Risk; Dividend yield: 6.5%; www.bonavistaenergy.com) explores for oil and gas in Alberta, Saskatchewan and B.C. Its production is 62% gas and 38% oil.

In the three months ended June 30, 2013, Bonavista’s cash flow per share rose 28.6%, to $0.63 from $0.49 a year earlier....