Canadian oil company,
Cenovus Energy Inc.
) 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
CENOVUS ENERGY (CVE): Free Stock Analysis
INTEROIL CORP (IOC): Free Stock Analysis
OASIS PETROLEUM (OAS): Free Stock Analysis
OILTANKING PTNR (OILT): Free Stock Analysis
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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
Oasis Petroleum Inc.
Oiltanking Partners LP
). All three firms sport a Zacks Rank #1 (Strong Buy).