This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Two Energy Buys on Breaking News: CVI CVE

Stocks in this article: CVE CVI

CVE pays a dividend yield-to-price of 2.7% if you can wait to buy shares at $34 or below. Its almost three-year chart below shows how the price of their shares correlates with its 17% Return-on-Equity (ROE).

CVE Chart CVE data by YCharts

Some of Cenovus' best results from their second quarter 2012 report derive from the fact that oil production climbed 28% to nearly 155,000 barrels-per-day. CVE received approval during that quarter for its Narrows Lake oil sands development, which is anticipated to have a production capacity of around 130,000 barrels-per-day.

Yes, earnings-per-share during the second quarter dropped almost 40% (year-over-year) mostly due to lower oil prices during that quarter. Yet its revenue grew by over 5% to a trailing-12-months total of over $17.25 billion. This helped keep the dividend payout ratio to 40%, which should be sustainable for the foreseeable future. Again, I like CVE when it's at or below $34-a-share.

Taking a Spin at CVREnergy

The other energy company worthy of our consideration is an interesting side of the energy business with a profitable "kicker" to boot! CVREnergy is in the refining, marketing and transportation fuels business in the United States. The company also produces and markets nitrogen fertilizer products.

Monday CVI announced that wholly owned subsidiary CVR Refining has filed a registration statement on Form S-1 with the SEC in connection with a proposed initial public offering of its common units representing limited partner interests.

CVR Refining intends to list its common units on the New York Stock Exchange under the symbol "CVRR." The number of common units to be offered and the price range for the offering have not yet been determined. All of the common units to be sold in this offering, including the common units that may be sold to satisfy the underwriters' over-allotment option, will be sold by CVR Refining.

You can read all the details and learn more about this multifaceted organization at its well-organized Web site. Monday's announcement confirms my analysis that with CVI, the whole is worth more than the sum of its parts. That's one of the big reasons that shares of CVI leaped almost 10% on the announcement of the spin-off of CVR Refining.

2 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,778.15 +421.28 2.43%
S&P 500 2,061.23 +48.34 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs