Cenovus ships by rail

Article Excerpt

CENOVUS ENERGY $13.42 (Toronto symbol CVE; Shares outstanding: 1.2 billion; Market cap: $16.5 billion; TSINetwork Rating: Average; Dividend yield: 1.5%; www.cenovus.com) has signed three-year deals with CN Rail (symbol CNR on Toronto) and CP Rail (symbol CP on Toronto) to transport 100,000 barrels per day of crude from Northern Alberta to the U.S. Gulf Coast. The deals are in response to a lack of new pipeline capacity—especially in the wake of a Canadian court overturning the approval of the Trans Mountain oil pipeline expansion. Oil-sands producer Cenovus will start shipments with CN from its Bruderheim Energy terminal in the fourth quarter of this year, and with CP through USD Partner LP’s Hardisty, Alberta terminal in the second quarter of 2019. Cenovus Energy is a buy. buy…