Canadian Energy Sector for my Portfolio

Asset allocation, risk, diversification and rebalancing. Pros/cons of hiring a financial advisor. Seeking advice on your portfolio?
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pullingpitch
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Canadian Energy Sector for my Portfolio

Post by pullingpitch »

I'm looking for some dividend growth large cap Canadian energy companies with no operations in northern Alberta. I don't think such a company exists so I would like to minimize the exposure as best I can. Is there an efficient way to find that out?
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newguy
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Re: Canadian Energy Sector for my Portfolio

Post by newguy »

CCO, TLM.

You don't say what you mean by energy company. Oil, gas, coal, nuclear, refined silicon, wind turbine manufacturer?

You don't say whether or not you want a Canadian company, or what you mean by dividend growth. Energy is cyclical so dividends shouldn't always grow. Maybe a big integrated like XOM or something, but they have investments all over the world.

You should also say why. Maybe you need to look at newer technologies if strip mining oil is your worry.

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pullingpitch
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Re: Canadian Energy Sector for my Portfolio

Post by pullingpitch »

By energy company, I mean energy producing companies.
By dividend growth, I mean companies that have a record of increasing their dividends at least once every two years over a ten year period.
By Canadian, I mean the companies whose dividends qualify for the enhanced dividend tax credit.

For example, Suncor fits all those criteria however they are concentrated in the tar sands which I would like to avoid and/or minimize.

I can easily screen based on the first three criteria however I haven't been having much luck with determining a company's exposure to the tar sands. I was hoping there would be a report from some body like CAPP that would do that. I guess the alternative is to look for the information in the annual reports.
DenisD
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Re: Canadian Energy Sector for my Portfolio

Post by DenisD »

Vermilion Energy has been increasing dividends for the past few years. IIRC, a lot of its production is international. I don't own it and know very little about it.
Vermilion's properties span three continents. We operate an offshore platform in Australia, major waterflood oilfields in France, natural gas production and processing in the Netherlands, and coalbed methane and tight gas production and processing in western Canada.
http://www.vermilionenergy.com/ir/whyin ... milion.cfm
http://www.vermilionenergy.com/ir/dividends.cfm
OhGreatGuru
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Re: Canadian Energy Sector for my Portfolio

Post by OhGreatGuru »

That's a pretty tall order, as companies usually try to diversify their operations. A company that isn't operating in Northern Alberta today could be tomorrow.
A few year ago you could have bought Fording Coal Trust, but now it's owned by a mining conglomerate, Teck Cominco.
Transalta maybe? About 25% of its generating capacity is outside Canada now, but it may still be considered "Canadian".
pullingpitch
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Re: Canadian Energy Sector for my Portfolio

Post by pullingpitch »

Thanks for your help. I contacted CAPP to see if they had a report that would suit my needs but haven't heard from them. I don't think anything exists that I as a retail investor have access to so I'll do it the old fashioned way.
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AltaRed
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Re: Canadian Energy Sector for my Portfolio

Post by AltaRed »

pullingpitch wrote:Thanks for your help. I contacted CAPP to see if they had a report that would suit my needs but haven't heard from them. I don't think anything exists that I as a retail investor have access to so I'll do it the old fashioned way.
CAPP is not in the business of deconstructing individual member's operations.

I suggest you pick your short list of candidates presumably based firstly on financial metrics and performance, and then weed out the operators one by one manually (via financial reports) with major stakes in the oil sands. The pickings get slim pretty fast though as it is primarily smaller companies and treadmill operators focusing their attention on shale oil and multi-frac'd light oil.... most with relatively high decline rates.
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OnlyMyOpinion
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Re: Canadian Energy Sector for my Portfolio

Post by OnlyMyOpinion »

Its not clear if you are choosing to exclude all oil cos operating up north or just those with open pit oil sands activity. There are others that are involved in in-situ oil sands operations. I believe Cenovus is one, but it looks like yesterday would have been a better day to buy it as it was up 6.5% today.
As suggested, you'll need to dig through their annual reports to see where their core activities are. Look also for investor presentations that can sometimes be found on the company website or with a Google search of the company.
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