Posts tagged: Energy stocks

Mar 03 2010

An Energy Infrastructure Stock To Watch – EPD: Enterprise Products Partners.

Enterprise Products Partners L.P. (EPD) provides services to producers and consumers of natural gas, natural gas liquids, crude oil, and petrochemicals. It’s clients are in the continental United States, Canada, and Gulf of Mexico. EPD also develops pipeline and other energy infrastructure, and it’s got a high yield and has been diversifying through acquisitions, which makes it worth looking into if you’re looking for income and growth.

Enterprise Products Partners L.P. (EPD) Dividend History.

Here’s a look at EPD’s dividend history over the past five years:

Year Dividend Yield
2009 $2.18 8.15%
2008 $2.09 8.36%
2007 $1.916 6.01%
2006 $1.796 6.2%
2005 $1.66 6.91%

Even though the price has risen about 15.5% over the past 6 months, it still sports an attractive 6.90% yield and has a lot of upside potential if energy demand soars again like it did in the early part of 2008. After the fall in energy prices, Enterprise Products Partners saw its share price slashed with other oil and gas stocks even though it has a fairly limited exposure to commodity price changes of the underlying energy source. It is mostly an energy product transporter and facilitator, which means its costs are relatively fixed as compared with those of energy explorers.


Related Posts
  • 6 Tips For the Beginning Investor. Here's a list of some investing insight I've learned over the years that I hope will help accelerate the beginning investor's road to wealth. 1. Don't go all in at once. If you have a lump sum of money to invest and you are doing so when the market is......
  • Forget Gold. Look To Commodities Etfs, Agriculture And Lead Instead. (VIDEO) Famed investor and best-selling author Jim Rogers was interviewed by Yahoo!'s Tech Ticker back in October 2009, and he's still bullish on commodities, but not so much on gold. Here's the 30-second takeaway from the video: Individual investors should focus on commodity ETFs, unless they have a deep understanding and......
  • Investing Term Tuesday: Gold Fix. The Gold Fix is the act whereby the price of gold is set, twice daily, by the 5 members of the London gold pool. This price is used as a benchmark for most of the global gold products and derivatives pricing. This "fixing" of the gold price by the......
  • Mutual Fund Monday - 5 Things To Watch When Choosing A Fund. Picking a mutual fund can be a daunting task, but here are 5 things to look for that I hope will help make the process a little easier. This is part of my weekly Mutual Fund Monday post feature. If you find this interesting or helpful, please read more. 1.......
  • 3 Recommended Pimco Bond Funds. Bonds are an important part of any good asset allocation, and here are 3 bond funds from the Pimco firm as recommended in a recent Kiplinger magazine article. PIMCO bond total return (PTTAX). Manager Bill Gross sticks to investment grade, intermediate-term U.S. bonds for this fund. The expense ratio for......

Related Websites
  • Equity Indexed Annuities - Problems, Risks and Benefits Baby boomers nearing retirement have taken an increased interest in equity-indexed annuities.  The reason is that an equity indexed annuity (EIA) is a financial product that allows its owner to participate in stock market gains while limiting downside risk if the market drops. To provide this risk control benefit, most......
  • Mariner's Resort, Eagle Lake, CA Mariner's Resort is located on Eagle Lake Phone: 530.825.3333 Average Water Depth: Eagle Lake's levels do tend to fluctuate. Please call the marina for more information before you arrive. Marine Stand by Channel: At this time, the marina does not monitor any stand by channels, but they are available by......
  • Gold Investing for Retirement I often ask myself whether I and other baby boomers should be investing in gold or gold stocks for retirement. On the one hand, a good financial plan needs an inflation protection strategy and precious metals are favorites as an inflation hedge. On the other hand, gold is notorious for......
  • Bad Energy Mojo From an Op-Ed piece in a recent New Your Times story titled, "Dumb as We Wanna Be": "Congress has been bickering over whether and how to renew the investment tax credit to stimulate investment in solar energy and the production tax credit to encourage investment in wind energy. The bickering......
  • MonaVie, Secret Formulas, and Coca-Cola When I ask How Much Acai is in MonaVie, I've heard a few MonaVie proponents say that it's a secret formula. They then suggest that like Coca-Cola, they shouldn't have to give up their proprietary information. At first glance, this appears to be a sound argument. However, upon inspection it......
Nov 02 2009

5 Energy Stocks To Invest In.

Introducing the “new, pragmatic approach to energy investing” (as it is called by SmartMoney) – also known as the having it both ways approach. It’s a new way to invest in energy stocks, and it mimics what the big oil companies themselves are doing. It’s a hedge, really.

It’s investing in the traditional energy supplies like coal and oil as a core to the portfolio, while also adding alternative energy like solar, wind and biofuel to the mix.

The U.S. Energy Information Administration projects fast growing economies like India and China will help drive energy consumption up by 33% by 2030. This will also drive up research into green and renewable energy sources, but it will also push the price of oil up to where it will be profitable to tap the harder to drill wells and process the more costly oil shale supplies of Canada – hence the hedge. Fossil fuels aren’t going away anytime soon, but they also won’t last forever.

Here are 5 energy stocks that should benefit from the new and old sources of energy.

Schlumberger (SLB).

This Houston based oil services firm helps customers like Exxon Mobil improve their efficiency in finding and extracting oil. Schlumberger gets nearly 75% of its $27 billion in annual sales from customers outside the U.S., so it’s also a nice foreign investment play. It’s active in operations off the west African coast as well as Russia.

Drilling fell nearly 60% in the U.S. and 30% in Russia when the recession hit, so it’s not a short term hold by any stretch, but it’s a good long term buy and hold opportunity. The cost of energy is only going to go up in the future, which is why many analysts say that Schlumberger’s long term potential far outweighs the short term challenges.

Apache (APA).

Natural gas prices fell 75% when new reserves of gas came into the market, and while this may be good news for consumers it’s not so good for Apache, who gets more than half its income from natural gas.

But natural gas is only half the story. While natural gas is not expected to hit it’s all time high again anytime soon, oil has rebounded quite a bit from it’s near $30 per barrel low. Apache’s plan is to only drill when oil is $40 or more a barrel, and search for gas when it’s at least $4.50 per million BTUs. Not surprisingly, Apache is spending much of it’s focus on oil these days.

Analysts say the company has a long term record of boosting production through acquisitions and operating efficiencies. As Ben Halliburton, chief investment officer of money manager Tradition Capital says, “They do a great job blocking and tackling.”

First Solar (FSLR).

Even though demand for solar energy worldwide is expected to be flat for this year, and even though the world is gripped by recession, this maker of solar panels expects earnings to soar 70% this year, and sales to increase 55%. Not too shabby.

Despite the buzz around green, renewable energy, solar energy is only a blip on the global energy radar. That means that if solar energy can become cost effective, there’s a lot of room for growth.

Some analysts expect demand for solar energy to grow more than 40% as the recession ends and governments continue to favor clean energy with grants and subsidies.

To ready itself for this anticipated growth, First Solar plans to double its production and manufacture enough solar panels to provide 1,000 megawatts of electricity.

If all this research and anticipation pans out, this would give First Solar an edge against any competitors.

Telvent (TLVT).

Telvent provides traffic management and other services to improve efficiency in energy and transportation industries. Efficiency is seen by some analysts as the low-hanging fruit of the push for cleaner, greener energy. This makes sense, because it’s easier to cut costs than increase revenue.

The massive $787 billion government spending bill passed by congress in February included $4.5 billion for building a “smart grid.” The smart grid makes use of technology and services provided by companies like Telvent to increase the efficiency of energy transmission.

Telvent’s client base includes utilities and governments around the world, and they hope to get a large part of the smart grid projects. The company headquarters were moved from Madrid to outside Washington, D.C. last year, which probably won’t hurt their bid for federal projects any.

Massey Energy (MEE).

Last up on the recommended energy stocks on this list comes from America’s often battered coal industry. Demand for coal is down, and competition from natural gas is up and Washington has made the coal industry second only to “Big Oil” on its energy enemies list. All of this factors into coal stocks being all but left for dead.

So why is a coal company like Massey Energy on a list of recommended stocks?

In a word, opportunity.

All those negatives have beaten share price down so far that there is a potential for huge return. Despite its status in Washington, coal remains one of the cheapest and most abundant sources of energy and still powers half of the U.S. electric output.

Massey is the nation’s 4th largest coal producer and the largest coal company in Central Appalachia.

Regardless of the ideals of the green energy movement, America is not likely to wean itself from coal for more than a decade at the earliest and Massey Energy is poised to reap the rewards for the time being.


Related Posts
  • SELL ALERT: 3 Stocks to Ditch While You Can? Here's a head's up for anyone holding these stocks - Fair Isaac, Boyd Gaming and Great Atlantic & Pacific Tea Company (A&P). A recent SmartMoney article has hilighted these 3 stocks as having garnered more "sell" recommendations than "buys" in recent weeks. Fair Isaac (FICO) Fair Isaac’s performance is dependent......
  • Why you Should Keep a Close Watch On Your Stops. Aaron Task at Yahoo! Tech Ticker has a post of the 5 Keys to the Market, from Todd Harrison, CEO of Minyanville.com. The money quote is near the bottom: "Given these crosscurrents, Harrison's advice for traders is to keep a tight leash on stops and be extra focused on risk......
  • Is NutriSystem a Buy? I started this post with an idea of screening stocks on Morningstar to find the top 3 which fit my stringent criteria: Morningstar rated A for Growth, Profitability and Financial Health. At least 4% dividend yield. At least 10% earnings growth over the past 3 years. I had to change......
  • Healthcare Stocks Ripe for Growth: MEDICAL RECORDS. This is a continuation of the Healthcare Stocks Ripe for Growth series this week. Yesterday, I profiled the Biotech company Gilead Sciences. This week is the medical record keeper, Quality Systems. Quality Systems (QSII) Regardless of whether the Obama administration gets public healthcare legislation passed, one thing you can count......
  • Healthcare Stocks Ripe for Growth: BIOTECH. Healthcare may not seem like a great investment right now, with all the talk of a government take over of the industry, but sometimes those are just the times that create great contrarian opportunity. Today, I'm profiling 3 healthcare sector stocks that show promise of growth in the coming years,......

Related Websites
  • Voting For The Environment - Where The Republicans Stand. As a follow-up (and just to be "sorta" fair) to yesterday's post about the Democrats running for President and their views on the environment, I present to you the same for the Republicans running this year. I don't know which of the three will get the nomination, but I am......
  • Adobe Flash Player 10.1: A transition for mobile applications Adobe Systems Incorp, California based company has announced a new Flash player for Smartphones, Macs and other mobile internet devices, called Flash Player 10.1. The new version will be available by the first half of the next year and it is the first time that users will get the identical......
  • Study Shows Homeowners Using Landscaping to Save Energy and Water In this current day and age, where common activities among people include the tightening of wallets and the fearing of soaring energy bills, almost everyone has had to adopt some substantial practices inside and outside of their own homes. Americans are also incorporating techniques in their landscaping that are allowing......
  • Empire Ranch Golf Club, Folsom, CA   Empire Ranch Golf Club is located in: Folsom, CA Phone: 916-817-8100 Website: http://www.empireranchgolfclub.com Course History: This course is very well maintained and offers a beautiful round of golf that is quiet and undisturbed. Serious players love this course since they can really concentrate on their game. With nearly 6700......
  • Solar Power Electricity-Can It Cut The Power Bill? If you have been looking for alternative forms of energy then you have no doubt heard about Solar Power Electricity. This is probably the most popular form of alternate energy, but people commonly don’t understand what it is. By the time you are done reading this report, you will learn......
Search Engine Submission - AddMe