oil and gas

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.
...

Enterprise Group, $0.79, symbol E on Toronto (Shares outstanding: 71.9 million; Market cap: $61.5 million; www.enterprisegrp.ca), provides underground construction services for utilities, including installing power, communication and natural gas lines. Enterprise Group continues to expand by acquisition. In early 2012, it started up a heavy equipment rental division called E One Limited. In September 2012, E One acquired Artic Therm International. Founded in 1998, Artic Therm rents flameless heaters to customers in the construction and oil and gas industries. These heaters range in heat output from 375,000 British thermal units (BTUs) to three million BTUs....

SNC-LAVALIN GROUP INC. (Toronto symbol SNC; www.snclavalin.com) is a leading Canadian engineering and construction company. It specializes in large-scale public works projects, such as roads, bridges, transit systems and water-treatment plants. SNC-Lavalin replaced most of its senior management following the discovery of $56 million U.S. in unusual payments it made in 2011 to help win Libyan construction contracts. SNC has also strengthened its oversight and compliance procedures in response to allegations that it used bribes to win certain contracts in Quebec....

J.C. PENNEY CO. INC., $13.50, New York symbol JCP, operates more than 1,100 department stores in the U.S. and Puerto Rico. Over a year ago, the company switched to an everyday low prices strategy. It felt the move would entice shoppers to come into its stores more often and not wait for clearance sales. However, the plan alienated Penney’s regular customers. In response to a sharp drop in its sales, the company switched back to its original marketing strategy....

DOREL INDUSTRIES, $35.45, symbol DII.B on Toronto, has agreed to buy 70% of Caloi, Brazil’s largest bicycle company, for an undisclosed sum. Established in 1898, Caloi is one of the world’s oldest bicycle makers. It is also Latin America’s top-selling bicycle brand and the leader in the Brazilian market. Caloi has a plant in Brazilian city of Manaus that is the largest bicycle manufacturing facility outside Southeast Asia, producing more than 700,000 units a year....

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....

SHERRITT INTERNATIONAL $3.70 (Toronto symbol S; TSINetwork Rating: Speculative) (1-800-704- 6698; www.sherritt.com; Shares outstanding: 296.9 million; Market cap: $1.1 billion; Dividend yield: 4.7%) is a diversified natural resource company that produces nickel, cobalt, thermal coal, oil and gas....

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%....

CRESCENT POINT ENERGY CORP. (Toronto symbol CPG; www.crescentpointenergy.com) produces oil and natural gas in western Canada. Its output is weighted 90% toward oil and 10% to gas....

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....