3 Crude Oil Companies With Flowing Dividends

These producers provide essential oil and gas to customers and income to investors.

| More on:
The Motley Fool

Consider Canada’s top crude oil companies and what they can offer your portfolio in terms of income.

1. Canadian Natural Resources

With a large land base and an extensive network of infrastructure and facilities, Canadian Natural Resources (TSX: CNQ)(NYSE: CNQ) is one of the largest independent crude oil and natural gas producers globally. Its operations include North American crude oil, natural gas, and natural gas liquids (NGLs), as well as Horizon oil sands. It also has operations in the North Sea and Offshore Africa. Canadian Natural Resources also has marketing and midstream operations.

For Q1 2014, the company realized record production in primary heavy crude oil, Pelican Lake heavy crude oil and North America light crude oil and NGLs. Pelican Lake is estimated to contain 4.1 billion barrels of original oil in place on Canadian Natural Resources land. A first-class company asset, Pelican Lake is a large, shallow crude oil pool in Canadian Natural’s Northern Plains core region.

Canadian Natural Resources’ current dividend yield is 1.90%. Its five-year average dividend yield is 1.20% and its dividend rate is $0.90.

2. Cenovus Energy

Cenovus Energy (TSX: CVE)(NYSE: CVE) is a major player in oil sands projects in northern Alberta and established natural gas and oil production in Alberta and Saskatchewan. It also has 50% ownership in two U.S. refineries.

For Q1 2014, Cenovus’ oil sands production averaged 120,444 bbls/d net. This represents an increase of 20% from Q1 2013. Its Christina Lake (Alberta) oil sands project production increased 48% from 2013. Christina Lake is one of its two industry-leading oil sands producing projects. The other is Foster Lake in Alberta.

This past March, Cenovus received approval from the Alberta Energy Regulator for its Grand Rapids thermal oil sands project (100% owned), within the company’s Greater Pelican Region in northern Alberta. The expectation is that Grand Rapids will have production capacity of 180,000 barrels per day. The project is predicted to have a life of 40 years.

Cenovus Energy’s current dividend yield is 3.20% and its five-year average dividend yield is 2.50%. Cenovus’ dividend rate is $1.06.

3. Suncor Energy

Suncor Energy (TSX: SU)(NYSE: SU) is an integrated energy company and the emphasis of its business is its oil sands operations. The company has one of the largest positions in the oil sands. Suncor’s Oil Sands unit is developing the Athabasca Oil Sands through mining and ‘in situ’ technologies.

In 2013, Suncor’s Fort Hills mining project was sanctioned. The Fort Hills project is in the Athabasca region. The project is recognized as one of the best undeveloped oil sands mining assets in the area. Suncor holds a 40.8% interest in the project, now in development with joint venture partners Total E&P Canada and Teck Resources. Suncor is the project operator.

For Q1 2014, Suncor achieved record-breaking financial results. This includes record operating earnings of $1.8 billion and record cash flow from operations of $2.9 billion, versus $1.4 billion and $2.3 billion, respectively, in Q1 2013.

Suncor Energy’s current dividend yield is 2.08%. Its five-year average dividend yield is 1.50%. Suncor’s dividend rate is $0.92.

A crude oil element can be part of your portfolio via these top producers. Research the projects each is focusing on and reap the dividends to be had from investing in their operations.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Michael Ugulini has no position in any stocks mentioned.

More on Investing

Canadian stocks are rising
Dividend Stocks

1 Dividend-Growth Stock You Won’t Want to Miss in the Real Estate Sector

A growth-oriented REIT is a strong buy today after raising its dividend by more than 5% in each of the…

Read more »

Hand arranging wood block stacking as step stair with arrow up.
Investing

Retirement Investors: 3 TSX Stocks That Could Rally With the Economy 

Always buy stocks you are bullish on when they trade below their 52-week highs. A recovery rally can enhance your…

Read more »

some canadian stocks rose
Investing

3 Stocks I’ll Load Up on in 2023

Toronto-Dominion Bank (TSX:TD) is one stock I'll load up on in 2023. There are others, too.

Read more »

HIGH VOLTAGE ELECRICITY TOWERS
Dividend Stocks

Better Buy: Emera Stock vs. Hydro One

Higher-risk utility Emera should provide higher returns over the next five years, given the dip and its higher yield.

Read more »

Growing plant shoots on coins
Tech Stocks

3 Growth Stocks That Look Ready to Double in 1 Year

These three growth stocks are "sleeping giants" ready to blast off in 2023 and beyond for investors who pick them…

Read more »

Payday ringed on a calendar
Dividend Stocks

Passive-Income Hat Trick: 3 TSX Stocks to Buy for Monthly Cash

Investors seeking passive income can invest in these Canadian dividend stocks and earn attractive monthly passive income.

Read more »

A close up image of Canadian $20 Dollar bills
Dividend Stocks

Get Passive Income of $435/Month With This TSX Stock

Here’s how dividend investing in Canada could help you get reliable monthly passive income.

Read more »

Money growing in soil , Business success concept.
Dividend Stocks

2 Undervalued Growth Stocks to Buy Right Now

Once a growth stock becomes too heavily discounted or undervalued, investors begin to wonder about its ability to bounce back,…

Read more »