High energy prices power their high yields

Article Excerpt

Oil and gas prices have moved down lately after a big spike earlier this year, but remain high. The future direction of energy prices depends on a lot of things, particularly economic growth rates around the world. Meanwhile, well-established producers took advantage of the weaker prices earlier in the pandemic to pick up properties and employees who are harder to find in more-prosperous times. Those top companies also have the strength to survive, even if energy prices again drop and to continue paying dividends. Here are two we see as buys: COTERRA ENERGY, $27.14, is a buy. The company (New York symbol CTRA; TSINetwork Rating: Extra Risk) (www.coterra.com; Shares o/s: 805.8 million; Market cap: $21.2 billion; Dividend yield: 2.2%) is the new name for oil-weighted Cimarex Energy after its October 2021 acquisition of gas-weighted Cabot Oil & Gas Corp. The merged firm is 50.5% owned by Cimarex and 49.5% by Cabot shareholders. Coterra believes that having a broader mix of assets in oil and gas should…