Crescent Point Energy
This is another Canadian company whose shares make 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 Alberta, British Columbia, Manitoba and Saskatchewan, as well as the states of North Dakota and Montana.
The company closed its accretive transaction 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, inventory depth and include key infrastructure that is expected to lower future capital requirements.
The TD Securities price target is C$8 (US$6.65), while the consensus target is $8.85. The stock traded closed Friday at $4.09.
This stock remains reasonably well received on Wall Street. Genesis Energy L.P. (NYSE: GEL) operates in the midstream segment of the oil and gas industry in the Gulf Coast region of the United States. Its Offshore Pipeline Transportation segment engages in offshore crude oil and natural gas pipeline transportation and handling operations, as well as in the deepwater pipeline servicing in the southern Keathley Canyon area of the Gulf of Mexico.
This segment owns interests in approximately 1,422 miles of crude oil pipelines located offshore in the Gulf of Mexico. Its Sodium Minerals and Sulfur Services segment provides sulfur-extraction services to refining operations, and it operates storage and transportation assets. This segment provides services to 10 refining operations and sells sodium hydrosulfide and caustic soda to industrial and commercial companies involved in the mining of base metals.
Investors receive a 6.38% distribution. RBC’s $12 price objective compares with a $12.47 consensus target. Genesis Energy stock closed Friday at $9.34.