pengrowth

BOMBARDIER INC., Toronto symbols BBD.A $3.51 and BBD.B $3.43, is having trouble getting enough parts from suppliers to build its new CSeries passenger jet. As a result, the company has delayed the new aircraft’s first test flight from the end of this year to June 2013. It still expects to deliver the first CSeries plane by the end of 2013. As well, slowing demand for its passenger railcars has prompted the company to cut 3% of this division’s workforce, including closing a plant in Germany. Severance and other costs will probably total $150 million (all amounts except share prices in U.S. dollars) in the fourth quarter of 2012. The company did not say how much these moves would save it. Meanwhile, Bombardier earned $209 million, or $0.12 a share, on sales of $4.3 billion in the three months ended September 30, 2012. The latest earnings beat the consensus estimate of $0.11 a share....

PENGROWTH ENERGY CORP. $5.59 (Toronto symbol PGF; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 507.1 million; Market cap: $2.8 billion; Price-to-sales ratio: 1.8; Dividend yield: 8.6%; TSINetwork Rating: Average; www.pengrowth.com) has suffered from low natural gas prices, same as Encana. That’s why in May 2012 it bought NAL Energy Corp., which gets roughly half of its production from higher-priced oil. Thanks to this purchase, Pengrowth’s daily production rose 26.4% in the three months ended September 30, 2012, to a record 94,284 barrels of oil equivalent from 74,568 a year ago. Natural gas accounted for 60% of its production, down from 63% a year earlier. Depressed natural gas prices pushed down Pengrowth’s cash flow by 6.2% in the quarter, to $141.1 million from $150.4 million a year earlier. Cash flow per share fell 39.1%, to $0.28 from $0.46, on more shares outstanding. Even so, the extra production from NAL should let Pengrowth keep paying monthly dividends of $0.04 a share (for an 8.6% annualized yield). Pengrowth is still a buy.

PENGROWTH ENERGY $6.44 (Toronto symbol PGF; Shares outstanding: 498.5 million; Market cap: $3.2 billion; TSINetwork Rating: Average; Dividend yield: 7.5%; www.pengrowth.com) has cut its monthly dividend by 42.9%, to $0.04 a share from $0.07. With the cut, the new annual dividend rate of $0.48 a share yields 7.5%.

The company’s selling prices for oil and natural gas have fallen, and it wants to conserve cash for potential acquisitions and investments in promising new projects, such as its Lindbergh oil sands development in Alberta.

The savings will also help Pengrowth integrate oil producer NAL Energy Corp., which it recently purchased.

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PENGROWTH ENERGY $6.44 (Toronto symbol PGF; Shares outstanding: 498.5 million; Market cap: $3.2 billion; TSINetwork Rating: Average; Dividend yield: 7.5%; www.pengrowth.com) has cut its monthly dividend by 42.9%, to $0.04 a share from $0.07. With the cut, the new annual dividend rate of $0.48 a share yields 7.5%. The company’s selling prices for oil and natural gas have fallen, and it wants to conserve cash for potential acquisitions and investments in promising new projects, such as its Lindbergh oil sands development in Alberta. The savings will also help Pengrowth integrate oil producer NAL Energy Corp., which it recently purchased....

PENGROWTH ENERGY CORP. $6.13 (Toronto symbol PGF; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 364.5 million; Market cap: $2.2 billion; Price-to sales ratio: 1.5; Dividend yield: 7.8%; TSINetwork Rating: Average; www.pengrowth.com) is cutting its monthly dividend by 42.9%, to $0.04 a share from $0.07, starting with the August 2012 payment. The new annual dividend rate of $0.48 yields 7.8%.

The company’s selling prices for oil and natural gas are falling, and it wants to conserve cash for acquisitions and investments in new projects like its Lindbergh oil sands development in Alberta.

Lindbergh should begin operating in 2015, and will increase Pengrowth’s production by a third by 2018. The project’s reserves should last 25 years.

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PENGROWTH ENERGY CORP. $6.13 (Toronto symbol PGF; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 364.5 million; Market cap: $2.2 billion; Price-to sales ratio: 1.5; Dividend yield: 7.8%; TSINetwork Rating: Average; www.pengrowth.com) is cutting its monthly dividend by 42.9%, to $0.04 a share from $0.07, starting with the August 2012 payment. The new annual dividend rate of $0.48 yields 7.8%. The company’s selling prices for oil and natural gas are falling, and it wants to conserve cash for acquisitions and investments in new projects like its Lindbergh oil sands development in Alberta. Lindbergh should begin operating in 2015, and will increase Pengrowth’s production by a third by 2018. The project’s reserves should last 25 years....

PENGROWTH ENERGY CORP., $6.40, Toronto symbol PGF, is cutting its monthly dividend by 42.9%, to $0.04 a share from $0.07, starting with the August 2012 payment. That caused the stock to fall 3% on Friday. Even after the cut, the new annual dividend rate of $0.48 a share still yields 7.5%. The company’s selling prices for oil and natural gas are falling, and it wants to conserve cash for potential acquisitions and investments in promising new projects, such as its Lindbergh oil sands development in Alberta....

BANK OF MONTREAL, $54.50, Toronto symbol BMO, reported higher-than-expected earnings for its latest quarter. In the bank’s fiscal 2012 second quarter, which ended April 30, 2012, its earnings rose 27.5%, to $982 million from $770 million a year earlier. That mainly reflects the contribution from U.S. banking firm Marshall & Ilsley Corp., which Bank of Montreal bought for $4.0 billion in stock in July 2011. Because of the extra shares the bank issued to pay for Marshall & Ilsley, its earnings per share rose at a slower pace of 15.2%, to $1.44 from $1.25. These figures exclude unusual items, such as costs to integrate the new acquisition. On this basis, the latest earnings beat the consensus forecast of $1.36 a share....

PENGROWTH ENERGY CORP. $8.41 (Toronto symbol PGF; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 364.5 million; Market cap: $3.1 billion; Price-to sales ratio: 1.9; Dividend yield: 10.0%; TSINetwork Rating: Average; www.pengrowth.com) reported that its daily production rose 2.7% in the three months ended March 31, 2012, to 75,618 barrels of oil equivalent from 73,634 a year ago. Because of depressed natural gas prices, the company is shifting its focus to oil, which accounted for 77% of its production compared with 61% a year earlier.

Even with the higher production, weak gas prices and higher royalties cut Pengrowth’s cash flow by 22.6% in the quarter, to $113.6 million from $146.8 million a year earlier. Cash flow per share fell 31.1%, to $0.31 from $0.45, on more shares outstanding.

However, the company’s high-quality western Canadian properties and its upcoming all-stock purchase of NAL Energy (Toronto symbol NAE) should let it take better advantage of high oil prices.

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PENGROWTH ENERGY CORP. $8.41 (Toronto symbol PGF; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 364.5 million; Market cap: $3.1 billion; Price-to sales ratio: 1.9; Dividend yield: 10.0%; TSINetwork Rating: Average; www.pengrowth.com) reported that its daily production rose 2.7% in the three months ended March 31, 2012, to 75,618 barrels of oil equivalent from 73,634 a year ago. Because of depressed natural gas prices, the company is shifting its focus to oil, which accounted for 77% of its production compared with 61% a year earlier. Even with the higher production, weak gas prices and higher royalties cut Pengrowth’s cash flow by 22.6% in the quarter, to $113.6 million from $146.8 million a year earlier. Cash flow per share fell 31.1%, to $0.31 from $0.45, on more shares outstanding. However, the company’s high-quality western Canadian properties and its upcoming all-stock purchase of NAL Energy (Toronto symbol NAE) should let it take better advantage of high oil prices....