oil and gas
COMPUTER MODELLING GROUP $29.37 (Toronto symbol CMG; TSINetwork Rating: Speculative) (403-531-1300; www.cmgroup.com; Shares outstanding: 39.0 million; Market cap: $1.2 billion; Dividend yield: 2.6%) sells software and consulting services that help oil and gas producers use advanced recovery techniques to get more out of their wells. It has customers in over 50 countries and offices in Calgary, Houston, London, Caracas, Bogota, Kuala Lumpur and Dubai.
In the three months ended December 31, 2013, Computer Modelling’s revenue rose 14.4%, to $19.2 million from $16.8 million a year earlier. Software licence sales increased, as did consulting and professional services revenue. Earnings rose 17.7%, to $7.2 million from $6.1 million. Per-share earnings gained 18.8%, to $0.19 from $0.16, on fewer shares outstanding.
Computer Modelling holds cash of $64.7 million, or $1.66 a share, and has no debt. It spent $3.8 million, or a high 19.8% of its revenue, on research in the latest quarter.
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In the three months ended December 31, 2013, Computer Modelling’s revenue rose 14.4%, to $19.2 million from $16.8 million a year earlier. Software licence sales increased, as did consulting and professional services revenue. Earnings rose 17.7%, to $7.2 million from $6.1 million. Per-share earnings gained 18.8%, to $0.19 from $0.16, on fewer shares outstanding.
Computer Modelling holds cash of $64.7 million, or $1.66 a share, and has no debt. It spent $3.8 million, or a high 19.8% of its revenue, on research in the latest quarter.
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MART RESOURCES $1.34 (Toronto symbol MMT; TSINetwork Rating: Speculative) (403-270-1841; www.martresources.com; Shares outstanding: 356.6 million; Market cap: $477.8 million; Dividend yield: 14.9%) produces oil at its 50%-held Umusadege field in southern Nigeria’s Niger Delta region.
Last year, the company finished building a central processing facility at Umusadege that can process 35,000 barrels of oil a day. That’s enough to handle the field’s current output and all future production increases.
Meanwhile, Mart is reporting steady cash flow and continues to pay quarterly dividends of $0.05 a share, for a high 14.9% yield.
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Last year, the company finished building a central processing facility at Umusadege that can process 35,000 barrels of oil a day. That’s enough to handle the field’s current output and all future production increases.
Meanwhile, Mart is reporting steady cash flow and continues to pay quarterly dividends of $0.05 a share, for a high 14.9% yield.
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TRILOGY ENERGY CORP. $26.56 (Toronto symbol TET; TSINetwork Rating: Speculative) (403-290- 2900; www.trilogyenergy.com; Shares outstanding: 99.4 million; Market cap: $3.3 billion; Dividend yield: 1.6%) owns oil and gas properties in central Alberta’s Kaybob and Grande Prairie areas. About 58% of Trilogy’s production is natural gas. The remaining 42% is oil.
In the three months ended September 30, 2013, Trilogy produced 31,211 barrels of oil equivalent a day (including gas), down 6.6% from 33,412 barrels a year earlier. Cash flow per share rose 15.0%, to $0.46 from $0.40, on higher oil prices.
The company plans to spend $375 million on exploration and development this year, down 6.3% from the $400 million it likely spent in 2013. As well, it’s now focusing on its shale oil prospects at Kaybob and spending less on its more mature oil pools in the same area.
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In the three months ended September 30, 2013, Trilogy produced 31,211 barrels of oil equivalent a day (including gas), down 6.6% from 33,412 barrels a year earlier. Cash flow per share rose 15.0%, to $0.46 from $0.40, on higher oil prices.
The company plans to spend $375 million on exploration and development this year, down 6.3% from the $400 million it likely spent in 2013. As well, it’s now focusing on its shale oil prospects at Kaybob and spending less on its more mature oil pools in the same area.
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PRECISION DRILLING CORP. $10 (www.precisiondrilling.com) has raised its quarterly dividend by 20.0%, to $0.06 a share from $0.05. The new annual rate of $0.24 yields 2.4%. Volatile oil and gas prices and a lack of pipelines have hurt drilling activity....
C-COM Satellite Systems, $1.57, symbol CMI on Toronto (Shares outstanding: 35.4 million; Market cap: $55.6 million; www.c-comsat.com), develops and sells satellite technology that delivers high-speed Internet, voice-over-Internet Protocol (VoIP) telephony and video into vehicles. C-COM has developed a self-deploying antenna, called iNetVu, that lets vehicles access high-speed satellite Internet—though they must be stationary to do so. Users include oil and gas exploration vehicles operating in harsh environments, mining, medical and construction vehicles and fire departments. In the three months ended August 31, 2013, C-COM’s revenue rose 24.8%, to $3.1 million from $2.5 million a year earlier. Earnings per share were $0.01 in the latest quarter, compared to nil per share....
BELLATRIX EXPLORATION $8.59 (Toronto symbol BXE; TSINetwork Rating: Speculative) (403-266- 8670; www.bellatrixexploration.com; Shares outstanding: 170.5 million; Market cap: $1.5 billion; No dividends paid) produces natural gas (70% of output) and oil (30%) in Alberta, B.C....
ISHARES MSCI BRAZIL INDEX FUND $42.51 (New York Exchange symbol EWZ; buy or sell through brokers) is an exchange traded fund that is designed to track the Brazilian stock market.
Top holdings are Petrobras (oil and gas), 10.7%; Vale do Rio Doce (mining), 9.1%; Cia Itau Unibanco Holding (banking), 7.4%; Cia de Bebidas das Americas (beer and beverages), 6.9%; Banco Brandesco, 5.5%; and BRF SA (food), 3.5%.
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Badger Daylighting, $95.32, symbol BAD on Toronto (Shares outstanding: 12.3 million; Market cap: $1.2 billion; www.badgerinc.com), provides excavating services that are less destructive than methods involving heavy equipment, such as backhoes. Most of its customers are in the utility and petroleum industries. Badger’s main product is the truck-mounted Badger Hydrovac, for digging in challenging conditions, such as congested areas. The system liquefies the soil with a pressurized water stream, then a powerful vacuum removes it and stores it in a tank. The company functions through what it calls operating partners in the U.S. and Canada. Badger provides the expertise, trucks and marketing and administration support, and the partners operate the equipment and build relationships with customers. There are 340 Badger Hydrovac units operating in Canada and 408 in the U.S....
Tourmaline Oil, $48.87, symbol TOU on Toronto (Shares outstanding: 189.4 million; Market cap: $9.2 billion; www.tourmalineoil.com), has identified over 7,200 oil and gas drilling locations in Western Canada and has the funds for exploration. That should let it keep raising its production. Tourmaline ended 2013 with record production of 111,200 barrels a day. It expects to add another 18,500 barrels a day by the end of February 2014. About 85% of Tourmaline’s output is natural gas, but even though gas prices are low, the company’s steadily rising production is pushing up its share price....