By Bret Jensen
Another poll came out today showing Americans support approval of the Keystone Pipeline, which has now been delayed by over 5 years, by a 3 to 1 margin. In addition, over 60 senators support approval. My opinion is that the president will continue to drag his feet on this matter. However, with the mid-terms approaching, a change of heart may not be out of the question.
As I penned back in December, Canadian Natural Resources (CNQ) would be a big, if not the biggest, winner if the pipeline was approved. Regardless the shares are doing just fine while the decision process on this “political football” moves as slow as molasses in the winter time.
Since the article, the shares have moved from $32 a share to over $37 a share. This rise has been driven by the company announcing a 12.5% increase in its dividend payout this week. The company has now tripled its payouts since 2010, and the shares will now yield a respectable 2% plus dividend.In addition, recent earnings improved 50% Y/Y owing to increased liquid and natural gas production. Cash flow from operations came in at nearly $7.5 billion for the year, nearly $7 per common share. Nearly all of cash flow is going to capital expenditures to expand production. However, the company hopes to grow free cash flow by over 45% per year from 2013 to 2020. Read the full article here.
About Bret JensenDaily columnist for RealMoney. Chief Investment Strategist (CIS) for S.A.M (Simplified Asset Management), a long/short hedge fund based in Miami, Florida from 2008 to 2011. Fund was in top five percent of long/short hedge funds for total return in its first full year(2009) ranked by Hedgeco fund database(over 450 funds in category). Content Sources Photo Credit This is not an offer to buy or sell securities. Oil investment carries with it very high risks. The information contained within this site has not been nor will it be verified by OTCPicks and is subject to change at any time. We are not a United States Securities Dealer or Broker or United States Investment Adviser. Do your own due diligence and consult with a licensed professional before making any investment decisions. Please read our full disclaimer before making any decisions.