oil and gas
Royal Dutch Shell plc (ADR), $76.69, symbol RDS.A on New York, (ADRs outstanding: 1.8 billion; Market cap: $137.9 billion; www.shell.com), owns interests in the many companies that make up the Royal Dutch Shell Group. Together, these companies are engaged in various aspects of the oil and gas industry around the world. Shell also has interests in chemical companies and other energy-related businesses. As well, it owns about 45,000 service stations worldwide. Shell recently completed two major projects in the Middle East: the Pearl gas-to-liquids (GTL) plant in Qatar, which is the world’s largest; and the Qatargas 4 plant, also in Qatar. This is Shell’s first entry into Qatar’s liquefied natural gas (LNG) industry. Shell now participates in LNG supply projects in seven countries. These projects will add growth in an area that had been sluggish for the company....
Ensign Energy Services Inc., $18.27, symbol ESI on Toronto (Shares outstanding: 153.2 million; Market cap: $2.8 billion; www.ensignenergy.com), is an oilfield-service company that operates in North America and overseas. Ensign drills and services crude-oil and natural-gas wells. It also rents equipment to oilfield operators. In the three months ended December 31, 2010, Ensign’s revenue jumped 45%, to $404 million from $278.7 million a year earlier. Earnings per shares rose 80%, to $0.27 from $0.15. Cash flow per share rose 52.6%, to $0.58 from $0.38. The gains came from a strong rebound in demand for the company’s services. Ensign holds cash of $89.5 million, or $0.56 a share, and is debt free....
Sherritt International Corp., symbol S on Toronto, is a diversified natural-resource company that produces nickel, cobalt, thermal coal, oil and gas. It also licenses its own mining technologies to other metals companies, and manages 376 megawatts of power-generation capacity in Cuba. In the three months ended March 31, 2011, the Canadian mining stock’s earnings jumped 116.3%, to $63.6 million, or $0.22 a share. A year earlier, it earned $29.4 million, or $0.10 a share. Revenue rose 29.5%, to $474.5 million from $366.4 million a year earlier. Higher prices for nickel, coal and oil were the main reasons for the improved results....
CHIPOTLE MEXICAN GRILL, $266.79, symbol CMG on New York, is a Denver-based Mexican-restaurant chain. In the three months ended March 31, 2011, Chipotle’s revenue rose 24.3% to $509.4 million from $409.7 million a year earlier. The company’s restaurants attracted more customers during the quarter. That pushed up its same-restaurant sales by 12.4%. Chipotle also opened 12 new restaurants. It now has a total of 1,095 locations. Earnings rose 22.5%, to $46.4 million from $37.8 million. Earnings per share rose 24.2%, to $1.49 from $1.20, on fewer shares outstanding. The company holds cash of $282.9 million, or $9.10 a share, and has no debt....
Tuscany International Drilling, $1.48, symbol TID on Toronto (Shares outstanding: 197.0 million; Market cap: $291.6 million; www.tuscanydrilling.com) mainly serves the oil and gas industry. The company sells contract-drilling and work-over services (major repairs or modifications to producing wells). It also rents equipment. Tuscany mainly operates in South America. The company has offices in Colombia, Ecuador, Brazil and Peru. It has 17 rigs in operation, and is building two more that it expects to deploy later this year. Tuscany started its drilling operations in the fourth quarter of 2009. It gained a listing on Toronto by merging with TSX-listed Cheq-IT Limited in April 2010. The shares began trading at $1.75....
Long-time readers know that we are constantly reevaluating our stock picks. Here are 12 stocks that have only limited growth prospects for the foreseeable future. We now see them all as sells. TETHYS PETROLEUM $1.42 (Toronto symbol TPL) produces and explores for oil and gas in Central Asia. Operating in that region adds significant political and legal risk to the company’s already uncertain prospects. Sell. PULSE SEISMIC $2.23 (Toronto symbol PSD) buys, sells and licenses seismic data to clients in western Canada. Pulse’s thin-trading shares have risen 50% on higher oil and gas drilling activity. Now would be good time to take profits. Sell....
SASOL LTD. (ADR) $53.91 (New York symbol SSL; TSINetwork Rating: Extra Risk) (082-883-9697; www.sasol.com; ADRs outstanding: 641.4 million; Market cap: $34.6 billion; Dividend yield: 1.7%) has developed a technology to convert coal and natural gas into motor fuels. The company is now the world’s largest producer of fuel from coal at its facility at Secunda, South Africa. Sasol also produces synthetic fuels from natural gas at plants in Qatar and Nigeria. In addition, the company has substantial chemical-production interests, and produces oil and gas in Africa. Sasol is also South Africa’s third-largest coal producer. In the six months ended December 31, 2010, Sasol’s revenue rose 15.8%, to $9.9 billion from $8.6 billion a year earlier (all figures in U.S. dollars). Earnings per ADR rose 19.9%, to $1.87 from $1.56....
DELPHI ENERGY $2.67 (Toronto symbol DEE; TSI Network Rating: Speculative) (403-265-6171; www.delphienergy.ca; Shares outstanding: 116.5 million; Market cap: $311.2 million; No dividends paid) explores for oil and gas in Alberta and B.C. In the three months ended December 31, 2010, Delphi’s combined daily output of natural gas, natural gas liquids and crude oil rose 24.0%, to 8,539 barrels of oil equivalent from 6,888 barrels a year earlier. Delphi’s cash flow rose 26.5%, to $18.0 million from $14.2 million. Its cash flow per share rose 14.3%, to $0.16 from $0.14....
CHEMTRADE LOGISTICS INCOME FUND $14.03 (Toronto symbol CHE.UN; TSINetwork Rating: Speculative) (416-496-5856; www.chemtradelogistics.com; Units outstanding: 30.7 million; Market cap: $430.3 million; Dividend yield: 8.8%) is one of North America’s largest providers of removal services for resource firms, such as oil refineries and base-metal processors. These companies create sulphur, acid and other by-products as part of their processing activities. Chemtrade converts these by-products into useful chemicals, like sulphuric acid. It also makes chemicals, such as sodium chlorate. In the three months ended December 31, 2010, Chemtrade’s cash flow per unit fell 31.7%, to $0.28 from $0.41 a year earlier. However, the decline was mostly because a fire forced Chemtrade to shut down its plant in Beaumont, Texas. High distribution appears safe ...
Delphi Energy, symbol DEE on Toronto, explores for oil and gas in Alberta and B.C. Natural gas makes up 76% of its daily output; the remaining 24% is oil. In the three months ended December 31, 2010, the commodity investment reported combined daily output of natural gas, liquid natural gas and crude oil rose 24.0%, to 8,539 barrels of oil equivalent from 6,888 barrels a year earlier. Delphi’s cash flow rose 26.5%, to $18.0 million from $14.2 million. Its cash flow per share rose 14.3%, to $0.16 a share from $0.14 a share....