Despite a gruesome environment for Canadian resource stocks, some oil & gas and mining companies are still paying out big chunks of cash in the form of dividends, even while operating at a loss. The names on our list today, then, are likely to either reduce or completely discontinue paying out dividends. Motives include: sliding revenues, negative cash flow, and an overall reduced cash balance.
Vermilion Energy Inc. (TSX: VET) – $42.92
Oil & Gas Exploration and Production
Vermilion Energy Inc. (Vermilion) is a Canada-based energy company engaged in the business of crude oil and natural gas exploration, development, acquisition and production. Vermilion is focused on the exploitation of conventional resource plays in Western Canada, including Cardium light oil and liquids rich natural gas, the exploration and development of high impact natural gas in the Netherlands and Germany, and through drilling and workover programs in France and Australia. Across all its locations, the Company has total proved reserves of approximately 69,278 Mbbl of approximately Oil, approximately 308,673 MMcf of Natural Gas, approximately 8,228 Mbbl of Natural Gas Liquids and approximately 128,952 Mboe of BOE.
- Market Cap: $4,855,621,320
- Drop in Revenues (1 year): -23.1%
- Free Cash Flow (2014): -$116,464,000
- Gross Dividends (LFQ): $71,000,000
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Canadian Oil Sands Ltd. (TSX: COS) – $6.78
Oil & Gas Exploration and Production
Canadian Oil Sands Limited is a Canada-based investment company. It is the majority owner of the Syncrude Joint Venture (Syncrude), a producer of high quality, low sulphur, light, synthetic crude oil (SCO). The Company’s owns approximately 36.74% working interest in Syncrude, generating revenue from its share of production, and represents the only public opportunity for undiversified investment directly in Syncrude. Syncrude is involved in the mining and upgrading of bitumen from oil sands near Fort McMurray in northern Alberta. The Syncrude Project is comprised of open-pit oil sands mines, utilities plants, bitumen extraction plants and an upgrading complex that processes bitumen into SCO.
- Market Cap: $3,343,838,146
- Drop in Revenues (1 year): -26.9%
- Free Cash Flow (2014): -$185,000,000
- Gross Dividends (LFQ): $24,000,000
Enerplus Corp. (TSX: ERF) – $7.86
Oil & Gas Exploration and Production
Enerplus Corporation is a Canada-based energy producer with a capital program focused on the development of its crude oil and natural gas core areas of operation, which includes its North Dakota and Montana crude oil assets in the Williston Basin, and its natural gas interests in northeast Pennsylvania.
- Market Cap: $1,654,885,443
- Drop in Revenues (1 year): -26.2%
- Free Cash Flow (2014): -$49,262,000
- Gross Dividends (LFQ): $30,935,000
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First Quantum Minerals Ltd. (TSX: FM) – $6.40
Diversified Mining
First Quantum Minerals Ltd. is a Canada-based mining and metals company. It has seven mines across the world, producing copper, nickel, gold, zinc and platinum group elements. It operates the Kansanshi copper-gold mine, the Guelb Moghrein copper-gold mine, the Las Cruces copper mine, the Kevitsa nickel-copper-PGE mine, the Pyhäsalmi copper-zinc mine, the Ravensthorpe nickel-cobalt mine and the Çayeli copper-zinc mine.
- Market Cap: $4,235,017,643
- Drop in Revenues (1 year): -8.5%
- Free Cash Flow (2014): -$2,211,370,120
- Gross Dividends (LFQ): $28,729,300
Atco Ltd. (TSX: ACO.X) – $37.63
Natural Gas Utilities
ATCO Ltd is a Canada-based company engaged in structures and logistics, utilities, and energy, and delivers business solutions. The Company’s segments are Structures & Logistics, Utilities, Energy, ATCO Australia.
- Market Cap: $4,476,005,311
- Drop in Revenues (1 year): -6.3%
- Free Cash Flow (2014): -$616,000,000
- Gross Dividends (LFQ): $29,000,000
