pengrowth
PENGROWTH ENERGY $1.36 (Toronto symbol PGF; Shares outstanding: 540.7 million; Market cap: $789.4 million; TSINetwork Rating: Average; Dividend yield: 2.9%; www.pengrowth.com) continues to sell less important properties and focus on more promising operations. This includes its Lindbergh oil sands project in Alberta. The company has now agreed to sell its Bodo project in eastern Alberta for $95 million. Including this deal, it has now sold $300 million worth of properties in 2015 and expects to reach its full-year goal of $600 million. Pengrowth will use the proceeds to pay down its long-term debt, which stood at $1.9 billion on June 30, 2015. That’s a high 2.4 times its currently depressed market cap....
Multi-well pad drilling (or “octopus” drilling) is now common practice among major oil firms and is actively used by a number of companies we recommend, including Encana, Devon Energy, Cimarex, Pengrowth and Imperial Oil.
Traditionally, a company has needed a pad or land site for each well it drilled. However, multi-pad drilling lets producers drill as many as 50 wells from a single pad.
Here’s how the technology works: producers set up a well pad and then install a multi-well rig. The drill from that rig then literally “crawls” on hydraulic tentacles to numerous drill locations within its range. When drilling at each location is completed, it takes just two hours for the rig to move to a new location. With traditional horizontal drilling methods, it takes about five days to move from pad to pad and start drilling a new well.
The practice of placing several wells on one pad has many benefits:
Traditionally, a company has needed a pad or land site for each well it drilled. However, multi-pad drilling lets producers drill as many as 50 wells from a single pad.
Here’s how the technology works: producers set up a well pad and then install a multi-well rig. The drill from that rig then literally “crawls” on hydraulic tentacles to numerous drill locations within its range. When drilling at each location is completed, it takes just two hours for the rig to move to a new location. With traditional horizontal drilling methods, it takes about five days to move from pad to pad and start drilling a new well.
The practice of placing several wells on one pad has many benefits:
- It reduces the impact of drilling multiple wells, which is especially important in populated areas.
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PENGROWTH ENERGY CORP. $1.41 (Toronto symbol PGF; Aggressive Growth and Income Portfolios, Resources sector; Shares outstanding: 540.7 million; Market cap: $762.4 million; Priceto- sales ratio: 0.8; Dividend yield: 2.8%; TSINetwork Rating: Average; www.pengrowth.com) continues to sell less important properties and focus on more promising operations like its Lindbergh oil sands project in Alberta. The company has now agreed to sell its Bodo project in eastern Alberta for $95 million. Including this deal, it has now sold $260 million worth of properties in 2015 and expects to reach its full-year goal of $600 million in asset sales. Pengrowth will use the proceeds to pay down its long-term debt, which stood at $1.9 billion on June 30, 2015. That’s a high 2.5 times its currently depressed market cap....
PENGROWTH ENERGY CORP. $1.41 (Toronto symbol PGF; Aggressive Growth and Income Portfolios, Resources sector; Shares outstanding: 540.7 million; Market cap: $762.4 million; Priceto- sales ratio: 0.8; Dividend yield: 2.8%; TSINetwork Rating: Average; www.pengrowth.com) continues to sell less important properties and focus on more promising operations like its Lindbergh oil sands project in Alberta.
< p>The company has now agreed to sell its Bodo project in eastern Alberta for $95 million. Including this deal, it has now sold $260 million worth of properties in 2015 and expects to reach its full-year goal of $600 million in asset sales. < p>Pengrowth will use the proceeds to pay down its long-term debt, which stood at $1.9 billion on June 30, 2015. That’s a high 2.5 times its currently depressed market cap....
< p>The company has now agreed to sell its Bodo project in eastern Alberta for $95 million. Including this deal, it has now sold $260 million worth of properties in 2015 and expects to reach its full-year goal of $600 million in asset sales. < p>Pengrowth will use the proceeds to pay down its long-term debt, which stood at $1.9 billion on June 30, 2015. That’s a high 2.5 times its currently depressed market cap....
PENGROWTH ENERGY CORP., $1.58, Toronto symbol PGF, continues to cut costs as low oil and natural gas prices hurt its earnings and cash flow. This week, the company said it would pay its final monthly dividend of $0.02 a share on September 15, 2015. It will then shift to a quarterly payout of $0.01 a share starting in December 2015. The new annual rate of $0.04 a share, down 83.3% from $0.24, yields 2.5%. Pengrowth will also suspend its dividend reinvestment plan with the December 2015 payment. Participants will then receive their dividends in cash until the company reinstates the plan....
PENGROWTH ENERGY $1.64 (Toronto symbol PGF; Shares o/s: 539.7 million; Market cap: $892.2 million; TSINetwork Rating: Average; Dividend yield: 2.4%; www.pengrowth.com) now plans to spend $190 million to $210 million on its oil and gas properties in 2015, down from its earlier forecast of $220 million to $240 million. The company also wants to sell $600 million worth of less important assets. It will use the cash to pay down its debt of $1.9 billion, which is a high 1.9 times its market cap. Pengrowth continues to benefit from its hedging program, which locks in selling prices above today’s low oil and gas prices. However, to conserve cash, it’s cutting its dividend to $0.01 per quarter from $0.02 per month. The new annual rate of $0.04 yields 2.4%....
PENGROWTH ENERGY CORP. $1.71 (Toronto symbol PGF; Aggressive Growth and Income Portfolios, Resources sector; Shares outstanding: 540.7 million; Market cap: $924.6 million; Price-to-sales ratio: 0.9; Dividend yield: 14.0%; TSINetwork Rating: Average; www.pengrowth.com) plans to spend $190 million to $210 million on its oil and gas properties in 2015, down from its earlier forecast of $220 million to $240 million.
The company also wants to sell $600 million worth of less important assets. It will use the cash to pay down its debt of $1.9 billion, which is a high 2.1 times its market cap.
Meanwhile, Pengrowth continues to benefit from its hedging program, which locks in selling prices above today’s low oil and gas prices. That should help it keep paying monthly dividends of $0.02 a share. The annual rate of $0.24 yields a high 14.0% due to the stock’s depressed price.
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The company also wants to sell $600 million worth of less important assets. It will use the cash to pay down its debt of $1.9 billion, which is a high 2.1 times its market cap.
Meanwhile, Pengrowth continues to benefit from its hedging program, which locks in selling prices above today’s low oil and gas prices. That should help it keep paying monthly dividends of $0.02 a share. The annual rate of $0.24 yields a high 14.0% due to the stock’s depressed price.
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PENGROWTH ENERGY CORP. $1.71 (Toronto symbol PGF; Aggressive Growth and Income Portfolios, Resources sector; Shares outstanding: 540.7 million; Market cap: $924.6 million; Price-to-sales ratio: 0.9; Dividend yield: 14.0%; TSINetwork Rating: Average; www.pengrowth.com) plans to spend $190 million to $210 million on its oil and gas properties in 2015, down from its earlier forecast of $220 million to $240 million. The company also wants to sell $600 million worth of less important assets. It will use the cash to pay down its debt of $1.9 billion, which is a high 2.1 times its market cap. Meanwhile, Pengrowth continues to benefit from its hedging program, which locks in selling prices above today’s low oil and gas prices. That should help it keep paying monthly dividends of $0.02 a share. The annual rate of $0.24 yields a high 14.0% due to the stock’s depressed price....
PENGROWTH ENERGY $2.89 (Toronto symbol PGF; Shares outstanding: 539.7 million; Market cap: $1.6 billion; TSINetwork Rating: Average; Dividend yield: 8.3%; www.pengrowth.com) plans to sell $600 million worth of less important properties by the end of 2015. The company will use the cash to pay down its total debt of $2.0 billion, which is a high 1.3 times its $1.6-billion market cap. Pengrowth is still a buy for aggressive investors....
CENOVUS ENERGY INC., $19.44, Toronto symbol CVE, has agreed to sell its royalty lands to the Ontario Teachers’ Pension Plan. The company collects royalties from firms that drill for oil and gas on these properties, which total 4.8 million acres in Alberta, Saskatchewan and Manitoba. It also gets some of the oil these drillers recover: in the first quarter of 2015, these wells supplied 7,800 barrels a day, or 3.6% of the Cenovus’s daily oil production of 218,020 barrels. Cenovus will receive $3.3 billion when it completes the sale, probably before July 31, 2015. To put that in context, its market cap (or the value of all of its outstanding shares) is $16.1 billion....