pengrowth

PENGROWTH ENERGY $5.84 (Toronto symbol PGF; Shares outstanding: 516.1 million; Market cap: $3.0 billion; TSINetwork Rating: Average; Dividend yield: 8.2%; www.pengrowth.com) has sold several of its less important oil and gas properties in Western Canada for $700 million.

Including the company’s earlier $316-million sale of its 10.02% interest in the Weyburn oil project in Saskatchewan, Pengrowth has now reached its goal of raising $1 billion through asset sales in 2013.

The cash will help Pengrowth develop its $590-milllion Lindbergh oil sands project in Alberta....

LOBLAW COMPANIES LTD., $48.39, Toronto symbol L, is buying Shoppers Drug Mart Corp. (Toronto symbol SC), which operates over 1,240 drugstores across Canada. Under the deal, Shoppers investors can choose to receive $61.54 in cash or 1.29417 Loblaw common shares and $0.01 cash for each Shoppers share they hold. Loblaw will cap the cash portion, so Shoppers investors will probably wind up with $33.18 in cash plus 0.5965 of a Loblaw common share. Based on today’s share price, the deal is worth $12.5 billion. This is a big purchase for Loblaw, which has a market cap (or the value of all its outstanding shares) of $13.6 billion....

CANADIAN PACIFIC RAILWAY $126 (Toronto symbol CP; Shares outstanding: 174.7 million; Market cap: $23.0 billion; TSINetwork Rating: Average; Dividend yield: 1.1%; www.cpr.ca) dropped in early June after activist investor Pershing Square Capital Management announced that it will sell 7 million of its CP shares over the next year....

PENGROWTH ENERGY CORP. $5.07 (www.pengrowth.com) continues to develop its Lindbergh oil sands project in Alberta. When this operation begins commercial production late next year, it should produce 12,500 barrels a day. That’s equal to 14% of the 89,702 barrels a day that Pengrowth produced in the first three months of 2013....

BELL ALIANT INC. $28 (www.bellaliant.ca) earned $0.43 a share in the three months ended March 31, 2013, unchanged from a year earlier. Revenue rose 0.3%, to $683.6 million from $681.8 million. Strong demand for high-speed Internet and TV services offset lower local and long-distance revenue....

PENGROWTH ENERGY $5.02 (Toronto symbol PGF; Shares outstanding: 512.6 million; Market cap: $2.6 billion; TSINetwork Rating: Average; Dividend yield: 9.6%; www.pengrowth.com) has now closed the sale of its 10.02% interest in the Weyburn oil project in Saskatchewan....

PENGROWTH ENERGY $4.98 (Toronto symbol PGF; Shares outstanding: 512.6 million; Market cap: $2.6 billion; TSINetwork Rating: Average; Dividend yield: 9.6%; www.pengrowth.com) produced 85,748 barrels of oil equivalent a day (60% natural gas and 40% oil) in 2012. That’s up 15.9% from 73,973 barrels in 2011.

The stock is down 47% in the past year. That’s because investors are concerned that low gas prices and Pengrowth’s high debt ($1.8 billion, or 69% of its market cap) will force it to cut its $0.04-a-share monthly dividend, for a 9.6% annualized yield.

However, Pengrowth’s rising oil production will cut its risk. This includes its Lindbergh oil sands project, which is now under construction. Moreover, the company has $4.5 billion of tax pools that it can use to cut its tax bill until 2017.
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PENGROWTH ENERGY CORP. $5.16 (www.pengrowth.com) has completed the sale of its 10.02% stake in the Weyburn oil project in Saskatchewan. It received $316.0 million, which is equal to 59% of its 2012 cash flow of $538.8 million, or $1.20 a share. The company used the cash to pay down its long-term debt....

PENGROWTH ENERGY CORP. $5.16 (www.pengrowth.com) has completed the sale of its 10.02% stake in the Weyburn oil project in Saskatchewan. It received $316.0 million, which is equal to 59% of its 2012 cash flow of $538.8 million, or $1.20 a share. The company used the cash to pay down its long-term debt....

PENGROWTH ENERGY $4.98 (Toronto symbol PGF; Shares outstanding: 512.6 million; Market cap: $2.6 billion; TSINetwork Rating: Average; Dividend yield: 9.6%; www.pengrowth.com) produced 85,748 barrels of oil equivalent a day (60% natural gas and 40% oil) in 2012....