Growth in Texas
In the "Executive Decision" segment, Cramer spoke with Bruce Northcutt, president and CEO of Copano Energy (CPNO), a natural gas pipeline operator with a juicy 6.5% dividend yield. Shares of Copano are up 50%, including dividends, since Cramer first recommended the stock on April 8, 2010.
Northcutt said the real story behind Copano is growth. He said the company is currently building $400 million worth of new projects, primarily in the Eagleford shale region of Texas, an area where wells can be drilled aggressively for decades.
Northcutt also explained that unlike a master limited partnership, Copano is organized as an LLC, and thus without a general partner, is able to pay out more of its earnings to shareholders.When asked why the company didn't turn to a secondary offering of stock to fund its projects, Northcutt said that Copano chose to not stress its balance sheet by offering more equity and instead turned to private equity which has proven to be a great partner for the company Finally, when asked why so many negative environmental stories are populating the media, Northcutt said that in the Northeast, the Marcellus shale region lies in the heart of coal country, and is likely getting push back from competing interests. In Texas, Northcutt said there have been little to no incidents affecting the environment or safety. Cramer continued his recommendation of Copano.