These three companies explore for, develop, and produce indispensable oil and natural gas required by industry and consumers on a daily basis. Despite the price volatility inherent in the oil and gas industry, these companies provide consistent shareholder returns.
1. Peyto Exploration & Development
Based in Calgary, Alberta, Peyto Exploration & Development (TSX: PEY) explores for and produces unconventional natural gas in Alberta’s Deep Basin. In the Deep Basin, the company has 100% interest in five processing facilities, which represent a capacity of 340 million cubic feet per day. Its operations in the basin include over 900 kilometres of pipelines and over 750 producing zones. Regarding its operations in the basin, 99% are operated by Peyto and 98% are processed by Peyto.
Peyto’s dividend rate is $1.20 and its dividend yield is 3.1%. The company’s three-year average dividend growth rate is 45.71%. In June, Peyto confirmed that the monthly dividend for June 2014 of $0.10 per common share would be paid on July 15, 2014.
2. Enerplus
Based in Calgary, Alberta, Enerplus (TSX: ERF)(NYSE: ERF) engages in the exploration and development of crude oil and natural gas in Canada and the U.S. The company has a portfolio of high-quality, low-decline oil and gas assets. Its operations include U.S. oil in the Williston Basin and U.S. natural gas — Marcellus shale gas interests in northeastern Pennsylvania. Its operations also include its Canadian crude oil portfolio producing from formations in the Western Canadian Sedimentary Basin, and natural gas from the Deep Basin.
Its dividend rate is $1.08 and its dividend yield is 4.2%. Its three-year average dividend growth rate is 14.61%. In late June, Enerplus announced that a cash dividend of $0.09 per share would be paid on July 21, 2014.
3. Penn West Petroleum
Based in Calgary, Alberta, Penn West Petroleum (TSX: PWT)(NYSE: PWE) is one of the largest conventional oil and natural gas producers in Canada. The company has a dominant position in light oil in Canada on a land base covering roughly five million acres. Penn West is continuing to focus its development programs on its light-oil targets in the Cardium, Viking, and Slave Point plays in western Canada. Its board approved a capital budget of $900 million for 2014. Two thirds of the investment is directed toward light oil opportunities.
Penn West Petroleum’s dividend rate is $0.56 and its dividend yield is 5.6%. Its three-year average dividend growth rate is 17.28%. On April 30, 2014, the company declared its Q2 dividend of $0.14 per share would be paid on July 15, 2014.
Consider essential oil and gas companies that pay regular dividends. If you’re looking for an energy component to your stock portfolio, the above three Alberta companies are worth your due diligence.
