oil and gas
BONAVISTA ENERGY $1.83 (Toronto symbol BNP; Shares outstanding: 211.7 million; Market cap: $367.5 million; TSINetwork Rating: Extra Risk; Dividend yield: 6.6%; www.bonavistaenergy.com) explores for oil and gas in Alberta, Saskatchewan and B.C. Its output is 75% gas and 25% oil. In the quarter ended September 30, 2015, Bonavista’s cash flow per share fell 26.7%, to $0.44 from $0.60 a year earlier. Most of that drop came from lower oil and gas prices; output rose 5.2%, to 78,599 barrels of oil equivalent a day from 74,720 barrels. Like many producers, the company is cutting back on exploration and development spending. In 2016, it will devote $210 million to this purpose. That’s down from the $283.4 million it spent in 2015, and down sharply from its $639.6 million in 2014....
DIRTT Environmental Solutions Ltd., $6.47, symbol DRT on Toronto (Shares outstanding: 84.0 million; Market cap: $553.5 million; www.dirtt.net), designs and builds customized office interiors. DIRTT stands for “doing it right this time.” The company believes its ICE 3-D software lets it deliver pre-made, customizable interiors faster and more efficiently than traditional construction methods. DIRTT first sold shares to the public at $3 each and began trading on Toronto in November 2013. In the three months ended September 30, 2015, the company’s revenue rose 33.1%, to $62.1 million from $46.7 million a year earlier. DIRTT gets 80% of its revenue from clients in the U.S., so it gains from a higher U.S. dollar. As well, increased demand from the financial services, real estate, retail and scientific industries offset a decline in projects from oil and gas companies....
BHP BILLITON LTD. ADRs $21 (New York symbol BHP; Conservative Growth Portfolio, Resources sector; ADRs outstanding: 1.6 billion; Market cap: $33.6 billion; Price-to-sales ratio: 1.3; Dividend yield: 11.8%; TSINetwork Rating: Average; www.bhpbilliton.com) will write down its U.S. onshore oil holdings by $4.9 billion (after taxes) in response to the decline in oil prices. In 2011, it spent $20.6 billion on acquisitions of U.S. shale oil and gas properties. The company is also seeing sharply lower prices for its other commodities, including iron ore, metallurgical coal and copper. The resulting decline in BHP’s cash flow will probably prompt it to cut its $2.48 dividend, which yields a high 11.8%. BHP Billiton is still a hold....
BHP BILLITON LTD. ADRs $21 (New York symbol BHP; Conservative Growth Portfolio, Resources sector; ADRs outstanding: 1.6 billion; Market cap: $33.6 billion; Price-to-sales ratio: 1.3; Dividend yield: 11.8%; TSINetwork Rating: Average; www.bhpbilliton.com) will write down its U.S. onshore oil holdings by $4.9 billion (after taxes) in response to the decline in oil prices. In 2011, it spent $20.6 billion on acquisitions of U.S. shale oil and gas properties. The company is also seeing sharply lower prices for its other commodities, including iron ore, metallurgical coal and copper. The resulting decline in BHP’s cash flow will probably prompt it to cut its $2.48 dividend, which yields a high 11.8%. BHP Billiton is still a hold.
GENERAL ELECTRIC CO. $28 (New York symbol GE; Conservative Growth and Income Portfolios, Manufacturing & Industry sector; Shares outstanding: 10.1 billion; Market cap: $282.8 billion; Price-to-sales ratio: 2.4; Dividend yield: 3.3%; TSINetwork Rating: Above Average; www.ge.com) has agreed to sell $157 billion in assets of its GE Capital financing division. So far, it has completed transactions equalling $104 billion. These sales are part of GE’s plan to focus on its industrial businesses, including jet engines, power plant equipment, medical gear and locomotives.
Shrinking GE Capital cuts risk
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GENERAL ELECTRIC CO. $28 (New York symbol GE; Conservative Growth and Income Portfolios, Manufacturing & Industry sector; Shares outstanding: 10.1 billion; Market cap: $282.8 billion; Price-to-sales ratio: 2.4; Dividend yield: 3.3%; TSINetwork Rating: Above Average; www.ge.com) has agreed to sell $157 billion in assets of its GE Capital financing division. So far, it has completed transactions equalling $104 billion. These sales are part of GE’s plan to focus on its industrial businesses, including jet engines, power plant equipment, medical gear and locomotives.
Shrinking GE Capital cuts risk
...
Selling your oil company stocks at the bottom is a bad idea.
BIRCHCLIFF ENERGY $3.35 (Toronto symbol BIR; TSINetwork Rating: Speculative) (403-261-6401; www.birchcliffenergy.com; Shares outstanding: 152.3 million; Market cap: $461.5 million; No dividends paid) develops, produces and explores for oil and gas in Western Canada. In the quarter ended September 30, 2015, Birchcliff’s cash flow per share dropped 42.0%, to $0.29 from $0.50 a year earlier. Sharply lower oil and gas prices offset a 12.3% production rise. Now more than ever, it’s crucial for oil and gas producers to have sound balance sheets that can weather a long downturn....
BIRCHCLIFF ENERGY $3.35 (Toronto symbol BIR; TSINetwork Rating: Speculative) (403-261-6401; www.birchcliffenergy.com; Shares outstanding: 152.3 million; Market cap: $461.5 million; No dividends paid) develops, produces and explores for oil and gas in Western Canada. In the quarter ended September 30, 2015, Birchcliff’s cash flow per share dropped 42.0%, to $0.29 from $0.50 a year earlier. Sharply lower oil and gas prices offset a 12.3% production rise. Now more than ever, it’s crucial for oil and gas producers to have sound balance sheets that can weather a long downturn....
We examine the future of Trican Well Service as upcoming debt payments and low oil prices weigh on this penny stock.