This Day On The Street
Continue to site
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

Two Energy Buys on Breaking News: CVI CVE

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

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
CVI $25.90 -6.46%
CVE $10.01 2.98%
AAPL $93.70 -0.60%
FB $101.91 0.90%
GOOG $683.11 -0.15%


Chart of I:DJI
DOW 15,660.18 -254.56 -1.60%
S&P 500 1,829.08 -22.78 -1.23%
NASDAQ 4,266.8370 -16.7550 -0.39%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs