Enterprise Group (TSX: E)'s latest brand-new Tier 1 client is a member of the Syncrude joint venture. Our research suggests that this company is Exxon through their Imperial Oil subsidiary.
Two weeks ago, Reuters published an article, 'Imperial Oil to reduce 30% oil sands emission intensity by 2030'. Click here to read the Reuters article.
According to Reuters, Imperial Oil, "plans to reduce Scope 1 and 2 emissions intensity through implementation of newer technologies at its Cold Lake operation in Alberta, efficiency improvements at its facilities and the use of carbon capture and storage."
If you read E's press release from two days ago, "The customer is a diversified unconventional oil and natural gas company, focused on the development of assets in Alberta and northeast BC. The company has a balanced mix of crude oil, liquids-rich natural gas and resource play natural gas and is a partner in the Syncrude Oilsands Joint Venture. As stated in the previous Tier One client announcement on January 24th, today's additional client announcement also fits directly into Enterprise Group's significant technology commitment to the planning, development and delivery of products and services to significantly reduce carbon and greenhouse gas output within the resource sector."
Syncrude is one of the world's largest producers of synthetic crude oil from oil sands and the #1 largest single source producer in Canada.
Syncrude is a joint venture between four partners (Suncor Energy (58.74%), Imperial Oil (25%), Sinopec (9.03%) and CNOOC (7.23%).
Suncor and Sinopec have already been clients of E for many years so it can't be them. It must be Imperial Oil (Exxon) especially considering the timing of that Reuters article about how Imperial Oil plans to reduce oil sands emissions by 30% by using newer technologies, efficiency improvements, and carbon capture/storage. It is unlikely to be CNOOC, because they aren't focused on Alberta and BC. We're 99% sure it is Imperial Oil (Exxon).
E recently obtained shareholder approval for a name change but they are still deciding on what their new name will be. Their current name sounds too much like the U.S. car rental company. If they choose a new company name related to greenhouse gas emission reduction or practically ANY name other than Enterprise Group its share price could multiply from these levels. E has a book value of $0.665 per share and similar to used cars, there is a shortage of the equipment E owns and therefore it must be RISING in value so we honestly don't know how E continues to trade below book value, especially when their business is beginning to boom.
Make sure you are completely out of NASDAQ technology growth stocks because they will not recover for another 10 years. Consider safe haven assets related to gold, oil, and tellurium, because they will boom next. E is our favorite oil stock while North Peak Resources (TSXV: NPR) is our favorite gold stock and First Tellurium (CSE: FTEL) is our favorite tellurium stock.
Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This message is not a solicitation or recommendation to buy, sell, or hold securities. NIA's President has purchased 201,000 shares of NPR in the open market and intends to buy more shares. NIA has received compensation from FTEL of USD$100,000 cash for a six-month marketing contract. This message is meant for informational and educational purposes only and does not provide investment advice.