Oil & gas buys for growth and income

Article Excerpt

CRESCENT POINT ENERGY CORP. $38.44 (Toronto symbol CPG; Shares outstanding: 211.7 million; Market cap: $8.1 billion; SI Rating: Extra Risk; Dividend yield: 7.2%) produces oil and natural gas in western Canada. Its average daily production of 56,061 barrels of oil equivalent (including natural gas) is weighted 89% toward gas and 11% to oil. The company continues to focus on its light-oil Bakken development in southeastern Saskatchewan. Crescent Point plans to spend at least $750 million on exploration and development this year. As well, the company has agreed to buy the 79% of privately held Shelter Bay Energy that it doesn’t already own for $1.1 billion in shares. Shelter Bay’s production is mostly from the Bakken area, and will Crescent Point’s output by about 10%. Crescent Point converted to a conventional corporation from an income trust in 2009, but it has maintained a high dividend payout. Its shares have a high 7.2% yield. Crescent Point flows just 72% of its cash flow through to…

You are trying to access subscriber-only content.

To read this article, you may subscribe or sign in.
If you are already a subscriber, log in here.

If you wish to become a subscriber, click here. Or you may enjoy access to all our publications when you become a Member of Pat McKeough's Inner Circle Pro.