With the energy sector trading higher year to date, investors may be interested in dividend-paying companies that have low valuations and are on the rise.
Civitas Resources Inc. (CIVI) is a New York Stock Exchange-traded oil and gas exploration and production company based in Denver. According to its website, the company was “the first carbon-neutral oil and gas producer in Colorado.” The company operates facilities in the DJ Basin and the Permian Basin regions.
With a price-earnings ratio of 6.86 and now trading at 1.33 times book value, the stock has a price-to-free cash flow ratio of 12.86. For an NYSE-listed security, it is relatively lightly traded with an average daily volume of 793,000 shares. Civitas offers investors a dividend of 2.39%.
Canadian Natural Resources
Canadian Natural Resources Ltd. (CNQ) has corporate headquarters in Calgary, Alberta and explores for and produces oil and gas. The company conducts operations in Western Canada and in the United Kingdom’s North Sea as well as in offshore Africa. Its environmental, social and government activities are noted here.
The stock can be purchased at 2.33 times book and trades with a price-earnings ratio of 13.06. This year’s earnings are up by 47% and up over the past five years by 36.30%. Shareholder equity greatly exceeds the amount of long-term debt. Canadian Natural Resources pays a 4.11% dividend yield.
Eni SpA (E) is an integrated oil and gas cmpany which operates from corporate headquarters in Rome, Italy. The New York Stock Exchange-traded company says it intends to achieve carbon neutrality by 2050, according to information available on its website.
With a price-earnings ratio of 5.44, the stock is trading at an 11% discount to its book value. The past five years shows earnings growth of 33.60% and this year’s earnings per share are growing at 144%. It is lightly traded with average daily volume of 204,000 shares. Eni pays a dividend of 6.13%.
Permian Resources Corp. (PR) is an oil and gas exploration and production company headquartered in Midland, Texas. According to its website, the company“ is the largest pure-play E&P company in the Delaware Basin.” The company's assets are located in Reeves and Ward counties in Texas and in Lea County, New Mexico.
The stock trades with a price-earnings ratio of 10 and at 1.41 times book value. The price-to-free cash flow ratio comes in at 15.23. Earnings over the past five years have increased by 40.30% and this year’s are up by 262%. Investors in Permian Resources receive a dividend yield of 1.35%.
Shell PLC (SHEL) is one of the classic name-brands in the oil sector, created as a company in 1907 but in business in one form or another since 1833. It operates in more than 70 countries and with more than 90,000 workers. Shell has its corporate headquarters located in London.
Now going for 1.12 times its book value, the stock trades with a price-earnings ratio of 7.68. This year’s earnings are up by 121%. The past five years earnings growth shows a 25.90% growth rate. The NYSE-listed name is actively traded with average daily volume of 4.46 million shares. Shell pays a 4.48% dividend yield.
Originally published on GuruFocus.com