oil and gas
CENOVUS ENERGY INC. $19 (Toronto symbol CVE; Conservative Growth Portfolio, Resources sector; Shares outstanding: 833.3 million; Market cap: $15.8 billion; Price-to-sales ratio: 1,2; Dividend yield: 1.1%; TSINetwork Rating: Average; www.cenovus.com) gets 30% of its revenue from its Western Canadian oil sands properties and conventional oil and gas wells. Its biggest properties are its 50%-owned Christina Lake and Foster Creek oil sands projects; ConocoPhilips (New York symbol COP) owns the remaining 50%. Refining supplies 70% of Cenovus’s revenue. The company ships its oil to its 50%-owned refineries in Illinois and Texas. Phillips 66 (New York symbol PSX) owns the other 50%....
PENGROWTH ENERGY CORP. $2.08 (Toronto symbol PGF; Aggressive Growth and Income Portfolios, Resources sector; Shares outstanding: 547.4 million; Market cap: $1.1 billion; Price-to-sales ratio: 1.4; Dividend suspended in January 2016; TSINetwork Rating: Speculative; www.pengrowth.com) has more than tripled from its low of $0.66 in January 2016. That’s partly because prominent Toronto investor Seymour Schulich recently acquired 16.6% of the company’s shares. The purchase makes him Pengrowth’s largest shareholder. Meanwhile, the company continues to sell less-important properties to focus on its main Lindbergh oil sands project. That’s why its production in the first quarter of 2016 fell 10.5%, to 62,056 barrels a day (61% oil and liquids, 39% natural gas) from 67,934 barrels a year earlier. In addition, weaker oil and gas prices cut its cash flow per share by 4.8%, to $0.20 from $0.21. Pengrowth used the cash from its recent assets sales to pay down its long-term debt. It now stands at $1.7 billion (or 1.5 times its market cap). That’s down 9.3% since the end of 2015....
IMPERIAL OIL LTD. $41 (Toronto symbol IMO; Conservative Growth and Income Portfolios, Shares outstanding: 847.6 million; Market cap: $34.8 billion; Price-to-sales ratio: 1.4; Dividend yield: 1.5%; TSINetwork Rating: Average; www.imperialoil.ca) is Canada’s second-largest integrated oil producer after Suncor. The company’s Alberta oil sands operations, including its 25% stake in the Syncrude project, supply 90% of its crude. Imperial also has conventional oil and gas operations in Western Canada, and invests in offshore projects in Atlantic Canada. In addition, it owns three refineries and makes petrochemicals. In March 2016, Imperial agreed to sell its 497 company-owned Esso gas stations to independent operators for $2.8 billion....
PENGROWTH ENERGY CORP. $2.08 (Toronto symbol PGF; Aggressive Growth and Income Portfolios, Resources sector; Shares outstanding: 547.4 million; Market cap: $1.1 billion; Price-to-sales ratio: 1.4; Dividend suspended in January 2016; TSINetwork Rating: Speculative; www.pengrowth.com) has more than tripled from its low of $0.66 in January 2016. That’s partly because prominent Toronto investor Seymour Schulich recently acquired 16.6% of the company’s shares. The purchase makes him Pengrowth’s largest shareholder. Meanwhile, the company continues to sell less-important properties to focus on its main Lindbergh oil sands project. That’s why its production in the first quarter of 2016 fell 10.5%, to 62,056 barrels a day (61% oil and liquids, 39% natural gas) from 67,934 barrels a year earlier. In addition, weaker oil and gas prices cut its cash flow per share by 4.8%, to $0.20 from $0.21. Pengrowth used the cash from its recent assets sales to pay down its long-term debt. It now stands at $1.7 billion (or 1.5 times its market cap). That’s down 9.3% since the end of 2015....
WEIGHT WATCHERS INTERNATIONAL, $12.35, symbol WTW on New York, offers weight-loss services in 23 countries. The company promotes a program of lifestyle changes through 36,000 weekly meetings and its website. Oprah Winfrey bought 10% of the company in October 2015. She also joined its board of directors. Her goal has been to promote the company and help it reverse a steady decline over the last few years. Weight Watchers reported a lower-than-expected loss in the latest quarter—and increased its membership for the first time in four years. The number of active subscribers stood at 3.06 million on April 2, 2016. That’s a 4.8% rise from 2.92 million a year ago....
PEYTO EXPLORATION & DEVELOPMENT CORP. $30.95 (Toronto symbol PEY; Shares outstanding: 159.2 million; Market cap: $4.9 billion; TSINetwork Rating: Extra Risk; Dividend yield: 4.3%; www.peyto.com) produces and explores for oil and natural gas in Alberta. Its average daily production of 97,028 barrels of oil equivalent is 93% gas and 7% oil. In the three months ended December 31, 2015, Peyto’s cash flow fell 15.9%, to $0.95 a share from $1.13 a year ago. It raised its production by 16.5%, but that was offset by lower oil and gas prices. Its realized oil price year over year fell 28.1%, and natural gas prices fell 20.9%. The company has cut it’s original 2016 capital spending of $600 million to $650 million down to between $500 million and $550 million. It spent $594 million in 2015....
BONAVISTA ENERGY $2.76 (Toronto symbol BNP; Shares outstanding: 214.0 million; Market cap: $626.1 million; TSINetwork Rating: Extra Risk; Dividend yield: 4.4%; www.bonavistaenergy.com) explores for oil and gas in Alberta, Saskatchewan and B.C. Its output is 68% gas and 32% oil. In the quarter ended December 31, 2015, Bonavista’s cash flow per share fell 30.2%, to $0.44 from $0.63 a year earlier. Most of that drop came from lower oil and gas prices, but also because of falling output. It declined 6.9%, to 79,862 barrels of oil equivalent per day from 85,810 barrels. Like many producers, the company will cut its exploration and development. In 2016, it plans to spend $145 million to $190 million. That’s a reduction from Bonavista’s initial announcement of $210 million, which is down from the $283.4 million it spent in 2015. It spent $639.6 million in 2014....
PEYTO EXPLORATION & DEVELOPMENT CORP. $30.95 (Toronto symbol PEY; Shares outstanding: 159.2 million; Market cap: $4.9 billion; TSINetwork Rating: Extra Risk; Dividend yield: 4.3%; www.peyto.com) produces and explores for oil and natural gas in Alberta. Its average daily production of 97,028 barrels of oil equivalent is 93% gas and 7% oil. In the three months ended December 31, 2015, Peyto’s cash flow fell 15.9%, to $0.95 a share from $1.13 a year ago. It raised its production by 16.5%, but that was offset by lower oil and gas prices. Its realized oil price year over year fell 28.1%, and natural gas prices fell 20.9%. The company has cut it’s original 2016 capital spending of $600 million to $650 million down to between $500 million and $550 million. It spent $594 million in 2015....
INTACT FINANCIAL CORP., $91.81, symbol IFC on Toronto, continues to announce innovative insurance policies aimed at new—but growing—markets. The company has reached an agreement with peer-to-peer car rental company Turo to provide insurance in Alberta, Ontario and Quebec. Turo started up in 2009 and now operates in 2,500 cities around the world. Car owners in Alberta, Ontario and Quebec can now register with the website to rent out their vehicles to other Turo members....
PASON SYSTEMS $17.91 (Toronto symbol PSI; TSINetwork Rating: Speculative) (403-301-3400; www.pason.com; Shares outstanding: 84.1 million; Market cap: $1.6 billion; Dividend yield: 3.8%) serves the drilling contractors of oil and gas firms in Canada, the U.S., Mexico and Argentina. The company provides them with rental equipment for monitoring and managing landbased oil rigs. Its systems also let clients remotely collect data from their drilling operations. For the three months ended December 31, 2015, Pason’s revenue fell 56.7%, to $59.8 million from $138.2 million a year earlier. A rise in the U.S. dollar partially offset the slowdown in oil and gas drilling. The company lost $841,000, or $0.01 a share, compared to a profit of $47.2 million, or $0.57, a year ago. The lower revenue was the main reason for the decline. Cash flow per share was positive, though it was down sharply, to $0.21 from $0.72....