As the natural gas Oct. 22 futures retreated from record highs of $9.98 per cubic foot to $8.27 per cubic foot, the SPDR Energy Select Sector Fund XLE fell by .80%.
Unfortunately, the U.S. and other major oil players such as OPEC have mentioned there are not enough energy supplies for the global economy. Goldman Sachs Head of Energy Research Damien Courvalin now expects a price target of $130 per barrel of Brent crude oil by the end of the year.
On Sept. 2, Russia’s Gazprom announced an indefinite shutdown of the Nord Stream 1 pipeline to Europe, due to technical issues. This sent a shockwave through European commodity markets, as they now have to discover new suppliers for energy coming this winter.
Here are three high-yielding stocks that supply natural gas, liquefied natural gas and crude oil.
Petrobras Brasileiro ADR PBR is offering a dividend yield of 47.87% or $6.91 per share annually, through quarterly payments, with an inconsistent track record of raising its dividends. Petrobras Brasileiro is a Brazil-based integrated energy company controlled by the Brazilian government.
Production in 2021 was 2.8 million barrels of oil equivalent a day (83% oil production), and reserves stood at 9.9 billion barrels of oil equivalent (85% oil). At year-end 2021, Petrobras operated 12 refineries in Brazil with a capacity of 1.9 million barrels a day and distributed refined products and natural gas throughout Brazil.
Devon Energy Corp DVN is offering a dividend yield of 8.81% or $6.20 per share annually, using quarterly payments, with a strong track record of increasing its dividends for five years.
At year-end 2021, Devon's proved reserves totaled 1.6 billion barrels of oil equivalent and net production that year was 572 thousand boe/d, of which oil and natural gas liquids made up 74% of production, with natural gas accounting for the remainder.
Devon repurchased 23.9 million shares, or 4% of its outstanding shares, at a total cost of $1.2 billion, as of the second quarter of 2022.
Enbridge Inc ENB is offering a dividend yield of 6.33% or $2.62 per share annually, making quarterly payments, with an inconsistent track record of raising its dividends. Enbridge’s pipeline network consists of the Canadian Mainline system, regional oil sands pipelines and natural gas pipelines, and also owns and operates a regulated natural gas utility and Canada's largest natural gas distribution company.
As of the second quarter, capital returned to shareholders through dividends reached $7 billion, as dividend per share growth was 3% in 2022, while share repurchases totaled $150 million.
Photo: André Ribeiro, courtesy Petrobras Agency
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