Back to top

Analyst Blog

Canadian oil company, Cenovus Energy Inc. (CVE - Snapshot Report) announced that it will invest $2.5 million in Skyonic Corp. to develop technology to transform carbon dioxide emissions into useful products. Cenovus would dish out the funds through its wholly owned subsidiary – Cenovus Environmental Opportunity Fund Ltd.

Skyonic would utilize the funds for the ongoing construction of its carbon capture and utilization plant in San Antonio, Texas. This plant is expected to be operational in 2014.

Based in Austin, Texas, Skyonic is a recent start-up. Once operational, the plant would transform carbon dioxide emissions from industrial waste streams into solid carbonate and bicarbonate or baking soda. The baking soda thus recovered would be utilized in the livestock and food industries. Skyonic’s plant would also produce chemicals such as hydrochloric acid, bleach, chlorine and hydrogen as by-products. The aforementioned chemicals also have a ready market for cleaning air pollutants.

Headquartered in Calgary, Alberta, Cenovus is an integrated oil company with ownership interest in two high-quality refineries in Illinois and Texas. Cenovus’ operations include increasing oil projects and growing natural gas and crude oil production in Alberta and Saskatchewan. The company has four top-quality enhanced oil projects, namely, Foster Creek, Christina Lake, Pelican Lake and Weyburn.

Cenovus enjoys the benefits of industry-leading oil sands assets that position it for long-term growth. We believe the company will remain focused on improving its operational efficiency initiatives throughout 2013.

However, Cenovus reported weaker-than-expected first quarter 2013 results due to lower crude oil price realizations. Earnings per share came in at 44 cents, missing the Zacks Consensus Estimate of 47 cents.

Cenovus currently carries a Zacks Rank #3 (Hold), implying that it is expected to perform in line with the broader U.S. equity market over the next one to three months.

Meanwhile, in the energy sector, firms that are expected to significantly outperform the broader U.S. equity market over the same time frame are InterOil Corp. (IOC - Snapshot Report), Oasis Petroleum Inc. (OAS - Snapshot Report) and Oiltanking Partners LP (OILT - Snapshot Report). All three firms sport a Zacks Rank #1 (Strong Buy).
 

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
UNITED THER… UTHR 117.83 +28.51%
TRIQUINT SE… TQNT 20.67 +6.52%
RF MICRO DE… RFMD 12.47 +6.04%
VASCO DATA… VDSI 14.77 +4.68%
BANCO DO BR… BDORY 15.53 +3.95%