oil and gas

Oil and Gas – Top Dividend Ideas

Traditionally the oil and gas industry has provided a source of large dividends for investors compared to the rest of the market. Since 2015 oil and gas companies have experienced adversity as commodity prices in the oil patch collapsed in 2015, oversupply crippled pricing, OPEC didn’t agree on terms multiple times, and the global pandemic crushed demand and pricing. Through all of the adversity these companies have experienced there are a handful that never cut or reduced their dividends and some that continued their dividend increases. We believe the following companies will continue providing dividend increase to shareholders while continuing their share price appreciation.

Enbridge

Enbridge is one of the most diversified energy infrastructure companies in North America. With its operations spanning across the United States and Canada Enbridge operates four business segments:

  • Liquids Pipelines
    • 53% of operations
    • approximately 17,127 miles (27,564 kilometers) of active crude pipeline
    • Delivers more than 3 million barrels of crude oil and liquids every day
    • Transports about 25% of the crude oil produced in North America
    • Transports about 65% of U.S.-bound Canadian exports
    • Accounts for 40% of total U.S. crude oil imports
  • Gas Transmission
    • 29% of operations
    • Gas transmission and midstream pipelines cover about 23,850 miles that spans 30 U.S. states, five Canadian provinces and offshore in the Gulf of Mexico. 
    • Natural gas network moves about 20% of all gas consumed in the U.S.
  • Gas Distribution
    • 13% of operations
    • delivering energy for 170 years
    • Enbridge Gas Inc. serves approximately 75% of Ontario residents
    • Enbridge Gas and its affiliates have 3.8 million residential, commercial, institutional and industrial meter connections
    • Distribute about 2.3 Bcf/d (billion cubic feet per day) of natural gas
  • Renewable Power Generation
    • 5% of operations
    • Enbridge’s renewable energy projects have the capacity to generate 5,082 megawatts
      • 23 wind farms
      • 7 solar energy operations
      • 1 geothermal project
      • 1 hydroelectric facility

Enbridge’s Dividend is hard to compete with having generated large yields for more than 2 decades

  • $40.80 share price
  • $2.68 dividend per share
  • 6.6% Dividend Yield
  • 26 years of consecutive dividend increases

Enterprise Products Partners

Enterprise Products Partners is one of the largest midstream energy companies in the United States providing transportation, storage, processing, fractionation and import/export capabilities.

  • Pipelines
    • 50,000 miles which transport
      • Natural gas
      • NGL
      • Crude oil
      • Refined products
      • Petrochemicals
  • Storage
    • 260 million barrels of capacity for
      • NGL
      • Refined products
      • Crude oil
    • 14 billion cubic feet of natural gas storage capacity
  • Processing
    • 22 natural gas processing plants
  • Fractionation
    • 23 NGL and propylene fractionators
  • Import / Export
    • Houston Shop Channel
      • 7 deep water ship docks
    • Beaumont
      • 5 deep water ship docks
    • Seaway Texas City and Freeport
      • 4 deep water ship docks
    • Morgan’s Point
      • 2 deep water ship docks

Enterprise Products Partners has one of the most sought after dividends in the oil patch

  • $25.34 share price
  • $1.80 dividend per share
  • 7.1% Dividend Yield
  • 22 years of consecutive dividend increases

ONEOK

ONEOK is one of the nations leading midstream service providers with operations in the  Rocky Mountain, Mid-Continent, and Permian regions. ONEOK has been in business since 1906 and is a FORTUNE 500 company and is included in the S&P 500. ONEOK operates 3 business segments which include NGLs, natural gas gathering and processing, and natural gas pipelines.

NGLs

  • Provides fee-based gathering, fractionation, transportation, marketing, and storage services linking key NGL market centers
  • Primary NGL transportation provider for the Williston Basin/PRB and Mid-Continent
  • >200 connections with natural gas processing plants
  • >980,000 bpd fractionation capacity

Natural gas gathering and processing

  • Provides gathering, compression, treating and processing services to producers
  • Primary natural gas processer in the Williston Basin
  • 2.7 Bcf/d of natural gas processing capacity
  • 22 natural gas processing plants

Natural gas pipelines

  • Approximately 40,000-mile network of natural gas liquids and natural gas pipelines
  • Greater than 10 Bcf/d (or 10%) of U.S. natural gas production is reliant on the utilization of ONEOK’s infrastructure
  • 52.2 billion cubic feet natural gas storage capacity
  • Bi-directional between Mid-Continent and Permian Basin; Mexico markets; Gulf Coast market through pipeline interconnects

ONEOK has paid a dividend to its shareholders since 1972 which spans every crisis energy has been effected by in recent times.

  • $55.64 share price
  • $3.74 dividend per share
  • 6.72% Dividend Yield
  • 19 years of consecutive dividend increases

Chevron

Chevron operates a global integrated energy, chemicals, and petroleum company through its upstream and downstream business segments. The Upstream segment revolves around the exploration, development, and production of crude oil and natural gas. The Downstream segment engages in refining crude oil into:

  • petroleum products
  • marketing crude oil
  • refined products
  • lubricants

Chevron is part of the prestigious Dividend Aristocrat club with a world-class dividend

  • $109.86 share price
  • $5.36 dividend per share
  • 4.88% Dividend Yield
  • 34 years of consecutive dividend increases

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