pengrowth
SNC-LAVALIN GROUP INC., $55.89, Toronto symbol SNC, rose 7% this week after announcing a major acquisition. The company has agreed to buy U.K.-based Kentz Corp. Ltd. (London exchange symbol KENZ), which provides engineering and construction services to the oil and gas industry. Kentz operates in 36 countries, which should increase SNC’s exposure to fast-growing regions like the Middle East, Asia and Australia....
PENGROWTH ENERGY $7.12 (Toronto symbol PGF; Shares outstanding: 526.2 million; Market cap: $3.7 billion; TSINetwork Rating: Average; Dividend yield: 6.7%; www.pengrowth.com) produced 75,102 barrels a day (55% oil and natural gas liquids, 45% natural gas) in the first quarter of 2014, down 16.3% from 89,702 a year earlier.
The drop was mainly because Pengrowth sold several less important oil and gas properties in Western Canada. It’s investing the proceeds in more promising projects, including its Lindbergh oil sands development in Alberta’s Cold Lake region.
Pengrowth’s cash flow, which excludes these losses, fell 6.9%, to $0.27 a share from $0.29. However, that beat the consensus estimate of $0.25.
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The drop was mainly because Pengrowth sold several less important oil and gas properties in Western Canada. It’s investing the proceeds in more promising projects, including its Lindbergh oil sands development in Alberta’s Cold Lake region.
Pengrowth’s cash flow, which excludes these losses, fell 6.9%, to $0.27 a share from $0.29. However, that beat the consensus estimate of $0.25.
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PENGROWTH ENERGY $7.12 (Toronto symbol PGF; Shares outstanding: 526.2 million; Market cap: $3.7 billion; TSINetwork Rating: Average; Dividend yield: 6.7%; www.pengrowth.com) produced 75,102 barrels a day (55% oil and natural gas liquids, 45% natural gas) in the first quarter of 2014, down 16.3% from 89,702 a year earlier.
The drop was mainly because Pengrowth sold several less important oil and gas properties in Western Canada....
The drop was mainly because Pengrowth sold several less important oil and gas properties in Western Canada....
CAE INC., $14.55, Toronto symbol CAE, is the world’s leading maker of flight simulators for commercial airlines. It also makes simulators for militaries and operates pilot-training schools. In its fiscal 2014 fourth quarter, which ended March 31, 2014, CAE’s earnings rose 39.2%, to $60.0 million from $43.1 million a year earlier. Per-share earnings gained 35.3%, to $0.23 from $0.17, on more shares outstanding. That beat the consensus estimate of $0.20. Revenue rose 3.1%, to $583.4 million from $565.6 million. CAE received orders for eight flight simulators during the quarter, which brought its full-year total to a new record of 48. Since the quarter ended, it has sold an additional four simulators. The company’s military-related businesses also continue to win new contracts....
PENGROWTH ENERGY CORP. $3.74 (Toronto symbol PGF; Aggressive Growth and Income Portfolios, Resources sector; Shares outstanding: 538.0 million; Market cap: $2.0 billion; Price-to-sales ratio: 1.7; Dividend yield: 6.4%; TSINetwork Rating: Average; www.pengrowth.com) recently started up its Lindbergh oil sands project in eastern Alberta, which should produce 16,000 barrels a day by the end of 2015.
The company has shut down less profitable wells in response to weak oil and gas prices. That’s why its average production fell 7.7% in the first quarter of 2015, to 69,334 barrels a day (52% oil and liquids, 48% gas) from 75,102 a year earlier. Without unusual items, Pengrowth earned $64.8 million, compared to a loss of $2.8 million. Cash flow per share fell 22.2%, to $0.21 from $0.27.
For the remainder of 2015, the company has hedged 78% of its oil production at $93.87 (Canadian) a barrel, well above today’s price of $60.16 U.S. It has also hedged 57% of its gas output at $3.72 (Canadian) per thousand cubic feet, compared to the current price of $2.94 U.S. The company’s hedges were worth $354.3 million as of March 31, 2015.
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The company has shut down less profitable wells in response to weak oil and gas prices. That’s why its average production fell 7.7% in the first quarter of 2015, to 69,334 barrels a day (52% oil and liquids, 48% gas) from 75,102 a year earlier. Without unusual items, Pengrowth earned $64.8 million, compared to a loss of $2.8 million. Cash flow per share fell 22.2%, to $0.21 from $0.27.
For the remainder of 2015, the company has hedged 78% of its oil production at $93.87 (Canadian) a barrel, well above today’s price of $60.16 U.S. It has also hedged 57% of its gas output at $3.72 (Canadian) per thousand cubic feet, compared to the current price of $2.94 U.S. The company’s hedges were worth $354.3 million as of March 31, 2015.
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BANK OF NOVA SCOTIA, $63.61, Toronto symbol BNS, continues to benefit from strong car loan and credit card demand in Canada, rising stock markets and an acquisition. The bank’s November 2012 purchase of ING Direct, which offers no-fee banking services over the Internet, continues to spur its growth. Bank of Nova Scotia will soon change this business’s name to Tangerine, which will let it keep using the orange colour associated with the ING Direct brand. As well, rising stock markets have increased the value of the assets the bank’s wealth management business administers. However, volatile currency exchange rates and higher costs have hurt profits at its international banking operations....
PENGROWTH ENERGY $7.14 (Toronto symbol PGF; Shares outstanding: 519.8 million; Market cap: $3.6 billion; TSINetwork Rating: Average; Dividend yield: 6.7%; www.pengrowth.com) plans to spend $715 million to expand and upgrade its oil and natural gas properties in 2014. That’s down 7.1% from the $770 million it probably spent in 2013.
The company ended 2013 with cash of $430 million, and it expects to generate $500 million to $540 million of cash flow this year. That should let it invest in its properties and maintain its monthly dividend of $0.04 a share, for a 6.7% yield.
Pengrowth is still a buy....
The company ended 2013 with cash of $430 million, and it expects to generate $500 million to $540 million of cash flow this year. That should let it invest in its properties and maintain its monthly dividend of $0.04 a share, for a 6.7% yield.
Pengrowth is still a buy....
PENGROWTH ENERGY $7.14 (Toronto symbol PGF; Shares outstanding: 519.8 million; Market cap: $3.6 billion; TSINetwork Rating: Average; Dividend yield: 6.7%; www.pengrowth.com) plans to spend $715 million to expand and upgrade its oil and natural gas properties in 2014....
PENGROWTH ENERGY $6.66 (Toronto symbol PGF; Shares outstanding: 519.8 million; Market cap: $3.5 billion; TSINetwork Rating: Average; Dividend yield: 7.2%; www.pengrowth.com) recently sold off $1 billion of less-important properties to raise funds for its $590-million Lindbergh oil sands project in Alberta.
As a result, Pengrowth’s average daily production fell 11.7% in the three months ended September 30, 2013, to 83,275 barrels of oil equivalent (57% gas, 43% oil) from 94,284 a year earlier. But thanks to higher prices, cash flow per share rose 10.7%, to $0.31 from $0.28.
The stock is up 33% since the start of 2013, but it still trades at just 5.8 times the company’s forecast 2014 cash flow of $1.14 a share.
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As a result, Pengrowth’s average daily production fell 11.7% in the three months ended September 30, 2013, to 83,275 barrels of oil equivalent (57% gas, 43% oil) from 94,284 a year earlier. But thanks to higher prices, cash flow per share rose 10.7%, to $0.31 from $0.28.
The stock is up 33% since the start of 2013, but it still trades at just 5.8 times the company’s forecast 2014 cash flow of $1.14 a share.
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