pengrowth

PENGROWTH ENERGY $1.89 (Toronto symbol PGF; Shares outstanding: 547.4 million; Market cap: $1.1 billion; TSINetwork Rating: Average; No dividends paid; www.pengrowth.com) produces oil and natural gas, mostly in Western Canada. This includes its Lindbergh oil sands project in Alberta....

PENGROWTH ENERGY $1.89 (Toronto symbol PGF; Shares outstanding: 547.4 million; Market cap: $1.1 billion; TSINetwork Rating: Average; No dividends paid; www.pengrowth.com) produces oil and natural gas, mostly in Western Canada. This includes its Lindbergh oil sands project in Alberta....

FORTIS INC. $43 (www.fortisinc.com) operates power plants in Canada, the U.S. and the Caribbean. It’s now buying ITC Holdings Corp. (New York symbol ITC) for $11.3 billion U.S. This firm owns 25,100 kilometres of high-voltage power lines in the U.S....

TRANSCANADA CORP., $55.59, Toronto symbol TRP, announced this week that it will build a new 800-kilometre natural gas pipeline in Mexico.

The project—called Sur de Texas-Tuxpan—will cost $2.1 billion U.S. and is part of a new joint venture agreement with Sempra Energy (New York symbol SRE).

The company will contribute $1.3 billion U.S....

ANDREW PELLER LTD., $26.93, Toronto symbol ADW.A, is Canada’s second-largest producer of wines, after Constellation Brands.

In the 2016 fiscal year, ended March 31, 2016, revenue increased 5.9%, to $334.3 million from $315.7 million in 2015. That’s mainly due to strong sales of Peller’s premium-priced brands....

PENGROWTH ENERGY CORP. $2.08 (Toronto symbol PGF; Aggressive Growth and Income Portfolios, Resources sector; Shares outstanding: 547.4 million; Market cap: $1.1 billion; Price-to-sales ratio: 1.4; Dividend suspended in January 2016; TSINetwork Rating: Speculative; www.pengrowth.com) has more than tripled from its low of $0.66 in January 2016. That’s partly because prominent Toronto investor Seymour Schulich recently acquired 16.6% of the company’s shares. The purchase makes him Pengrowth’s largest shareholder. Meanwhile, the company continues to sell less-important properties to focus on its main Lindbergh oil sands project. That’s why its production in the first quarter of 2016 fell 10.5%, to 62,056 barrels a day (61% oil and liquids, 39% natural gas) from 67,934 barrels a year earlier. In addition, weaker oil and gas prices cut its cash flow per share by 4.8%, to $0.20 from $0.21. Pengrowth used the cash from its recent assets sales to pay down its long-term debt. It now stands at $1.7 billion (or 1.5 times its market cap). That’s down 9.3% since the end of 2015....

PENGROWTH ENERGY CORP. $2.08 (Toronto symbol PGF; Aggressive Growth and Income Portfolios, Resources sector; Shares outstanding: 547.4 million; Market cap: $1.1 billion; Price-to-sales ratio: 1.4; Dividend suspended in January 2016; TSINetwork Rating: Speculative; www.pengrowth.com) has more than tripled from its low of $0.66 in January 2016. That’s partly because prominent Toronto investor Seymour Schulich recently acquired 16.6% of the company’s shares. The purchase makes him Pengrowth’s largest shareholder. Meanwhile, the company continues to sell less-important properties to focus on its main Lindbergh oil sands project. That’s why its production in the first quarter of 2016 fell 10.5%, to 62,056 barrels a day (61% oil and liquids, 39% natural gas) from 67,934 barrels a year earlier. In addition, weaker oil and gas prices cut its cash flow per share by 4.8%, to $0.20 from $0.21. Pengrowth used the cash from its recent assets sales to pay down its long-term debt. It now stands at $1.7 billion (or 1.5 times its market cap). That’s down 9.3% since the end of 2015....

PENGROWTH ENERGY $1.82 (Toronto symbol PGF; Shares outstanding: 543.0 million; Market cap: $1.1 billion; TSINetwork Rating: Speculative; No dividends paid; www.pengrowth.com) started up its Lindbergh oil sands project in Alberta in April 2015. The project includes an electrical power plant that provides the operation with steam used to melt the tar-like bitumen. That makes it easier to pump to the surface. The provincial power grid then buys the company’s excess power. Pengrowth is now selling this plant to a local First Nations group for $35 million. As part of the deal, Pengrowth will lease back the facility for 20 years and continue to operate it....

ENBRIDGE INC. $50.95 (Toronto symbol ENB; Shares outstanding: 924.3 million; Market cap: $47.5 billion; TSINetwork Rating: Above Average; Divd. yield: 4.2%; www.enbridge.com) has received Canadian regulatory approval to replace its Line 3 pipeline, which began operating in the 1960s. It pumps crude oil from Hardisty, Alberta, to Superior, Wisconsin. U.S. regulators have already approved the plan. The project will also enlarge the line’s capacity, from 390,000 barrels a day to 760,000 barrels. Enbridge expects to complete these upgrades by 2019. Regulators have imposed 89 conditions on the project—mainly additional measures to improve safety and environmental protections. But these conditions are unlikely to increase the project’s $7.5 billion cost....

FORTIS INC., $39.86, Toronto symbol FTS, owns electrical utilities across Canada and in the U.S. and the Caribbean. It also distributes natural gas in British Columbia. The company has completed its latest acquisition in northern B.C.—a 93.8% stake in the Aitken Creek natural gas storage facility. Fortis paid Chevron Corp (New York symbol CVX) $266 million U.S. for the underground complex. To put that in context, Fortis earned $589 million, or $2.11 a share, in 2015. BP Canada owns the remaining 6.2% stake in the B.C. facility. Currently, Fortis leases one-third of Aitken Creek’s capacity. Owning this facility should reduce the company’s costs....