Crescent Point Energy
This is another Canadian company that makes sense for investors looking to get some share-count leverage. Crescent Point Energy Corp. (NYSE: CPG) explores, develops and produces light and medium crude oil and natural gas reserves in western Canada and the United States. The company’s crude oil and natural gas properties, and related assets are located in the provinces of Saskatchewan, Alberta, British Columbia and Manitoba, as well as the states of North Dakota and Montana.
The company recently closed its accretive transaction previously announced in February, when it acquired Shell Canada Energy’s Kaybob Duvernay assets in Alberta for $900 million This strategic acquisition enhances Crescent Point’s core principles of balance sheet strength and sustainability. In particular, these assets, which are situated in the heart of the condensate rich fairway, are expected to enhance the company’s free cash flow profile and inventory depth and include key infrastructure that is expected to lower future capital requirements.
The TD Securities price target is $8, which compares with an $8.85 consensus target. The stock was near $4 a share late last week.
This top MLP is a very safe way for investors looking for energy exposure and income. Energy Transfer L.P. (NYSE: ET) owns and operates one of the largest and most diversified portfolios of energy assets in the United States, with a strategic footprint in all the major domestic production basins.
This publicly traded limited partnership has core operations that include complimentary natural gas midstream, intrastate and interstate transportation and storage assets; crude oil, NGLs and refined product transportation and terminaling assets; NGL fractionation; and various acquisition and marketing assets.
Through its ownership of Energy Transfer Operating, formerly known as Energy Transfer Partners, the company also owns Lake Charles LNG, as well as the general partner interests, the incentive distribution rights and 28.5 million common units of Sunoco, and the general partner interests and 39.7 million common units of USA Compression Partners.
Investors finally received the long-anticipated distribution cut last fall, which was a stunning 50%. However, at $0.61 per unit, investors are still paid a stellar 7.44%.
The sizable $11 BofA Securities price target is not too far off the $10.84 consensus target. Energy Transfer stock rose above the $8 level on Friday.