I have captured 12 energy stocks that pay a healthy dividend that you should consider to be part of your portfolio. I don't own all of these, but there is value and we recommend a good hard look to find the ones that line up with your investment strategy. These companies span the exploration, drilling, transportation and refining sectors. Some are trusts, others include Master Limited Partners ((MLPs)) and some pay 20% plus in dividends while others pay near 10%. All of these have value to add to your collection, as we believe all of these companies value will increase over 10% a year going forward. Our definition of value includes the stock price appreciation and the dividends paid per year will increase in value over 10%. This will help you grow your portfolio and build wealth. All data is based on March 13, 2014 reporting information.
Chesapeake Granite Wash Trust (NYSE: CHKR) has a current stock price of $11.12 and paid a dividend of $0.6624 on February 14, 2014, with a yield of 23.4%. Chesapeake Granite Wash Trust is a statutory trust. The trust was established by Chesapeake Energy Corporation (NYSE: CHK) to sell the interests to unitholders in specified oil and natural gas properties located in the Colony Granite Wash play in Washita County in the Anadarko Basin of western Oklahoma. The area of mutual interest is limited to the Colony Granite Wash formation, consisting of approximately 45,400 gross acres (29,000 net acres) held by Chesapeake as of Dec 31 2012. Stock price is up 5% year to date. The Trust will make quarterly distributions of the cash receipts attributable to the royalty interests, after deducting the Trust's expenses, through the quarter ending June 30, 2031. This is a buy and hold stock for a long term investment.
Linn Energy LLC ( NASDAQ: LINE) Linn energy has a stock price today of $28.40 and paid the last monthly dividend of $0.24 on March 6, 2014 for a yield of 10.2%. Linn Energy is an independent oil and natural gas company. LINN is the 12th largest publicly traded domestic independent oil & natural gas company, and the largest upstream MLP and the 8th largest public MLP/LLC. The company holds properties in Oklahoma, Louisiana and the eastern Texas Panhandle (including the Granite Wash and Cleveland horizontal plays); properties in Kansas and the Shallow Texas Panhandle; properties in southwest Wyoming; areas in west Texas and southeast New Mexico; the Antrim Shale formation in the northern Michigan and oil properties in southern Illinois; the Bakken formation in North Dakota and the Powder River Basin in Wyoming; the Brea Olinda Field of the Los Angeles Basin; and properties in east Texas. As of Dec 31 2013, Co. had estimated total proved reserves of 6.403 trillion cubic feet of gas equivalent. LINN expects 2014 production numbers to average between 1.07 and - 1.14 BCFE/D.
SandRidge Mississippian Trust II (NYSE:SDR) has a stock price today of $8.15 and paid the last quarterly dividend of $0.568 on February 28, 2014 for a yield of 27.8%.
SandRidge Mississippian Trust II is a statutory trust formed by SandRidge Energy, Inc. (NYSE:SD). SandRidge conveyed to Co.'s royalty interests in specified oil and natural gas properties in the Mississippian formation in Alfalfa, Grant, Kay, Noble and Woods counties in northern Oklahoma and Barber, Comanche, Harper and Sumner counties in southern Kansas. Opening state by James Bennett, SandRidge's Chief Executive Officer and President, during the 4Q, 2013 Energy Analyst Meeting on March 4, 2014 commented;
We are already producing from six oil rich zones in the Mid-Continent focus area. Consistent execution and continued improvements have increased our Mississippian type curve EUR by 3% over 2012, while reserve replacement was 434%. As an example of appraisal success, we've now added Sumner County, Kansas, where we have over 100,000 acres.
SandRidge Permian Trust (NYSE:PER) has a stock price today of $12.30 and paid the last quarterly dividend of $0.64 on February 28, 2014 for a yield of 20.8%.
SandRidge Permian Trust is a statutory trust formed by SandRidge Energy, Inc. . SandRidge conveyed to Co.'s royalty interests in certain oil and natural gas properties in the Permian Basin located in Andrews County, TX. As of March 13, 2014, the company's estimated proved reserves of 12.303 billion barrels of oil, 1.323 billion barrels of natural gas liquids, and 3.971 billion cubic feet of natural gas.
Atlas Resource Partners, L.P. (NYSE:ARP) has a stock price today of $22.37 and paid the last quarterly dividend of $0.19 on March 5, 2014 for a yield of 10.65%.
Atlas Resource Partners is an MLP and independent developer and producer of natural gas, crude oil and natural gas liquids, with operations in the following areas: the Barnett Shale and Marble Falls play in the Forth Worth Basin in northern Texas; the Appalachia basin, including the Marcellus Shale and the Utica Shale; the Mississippi Lime and Hunton plays in northwestern Oklahoma; the Chattanooga Shale in northeastern Tennessee, the Niobrara Shale in northeastern Colorado, the New Albany Shale in southwestern Indiana, and the Antrim Shale in Michigan. As of October 2013 at the ARP IPAA brief in San Francisco, the company reported an increase in proven reserves from 170 Bcfe to a current of 1.4 Tcfe. Dec 31 2012, Co. had proved natural gas and oil reserves of 723.36 billion cubic feet equivalent. The company will release the end of year reports with the updated proven reserve data soon. ARP's stock price is up 6.35% for the year. The ARP IPAA brief is on this web page, and open the ARP IPAA brief (pdf format).
Calumet Specialty Product Partners LP (NASDAQ:CLMT) has a stock price today of $24.64 and paid the last quarterly dividend of $0.685 on February 14, 2014 for a yield of 11.15%. Calumet Specialty Product Partners is a producer of hydrocarbon products and fuel products in North America. The company has two business segments: specialty products, which processes crude oil and other feedstocks into a variety of lubricating oils, white mineral oils, solvents, petrolatums, waxes and asphalt; and fuel products, which processes crude oil into a variety of fuel and fuel-related products including gasoline, diesel, jet fuel and heavy fuel oils. In connection with its production of specialty products and fuel products, The company's facilities are primarily located in Louisiana, Wisconsin, Montana, Texas and Pennsylvania. Two of the company's strengths include its robust revenue growth and largely solid financial position with reasonable debt levels. Although oversold we anticipate the stock will appreciate going forward with a 10% plus dividend.
Enduro Royalty Trust (NYSE: NDRO) has a stock price today of $13.14 and paid the last monthly dividend of $0.10 on February 14, 2014 for a yield of 9.19%. Enduro Royalty Trust is a statutory trust, engaged in holding a net profits interest representing the right to receive 80% of the net profits from the sale of oil and natural gas production from listed properties from the Trust Agreement in the states of Texas, Louisiana and New Mexico. As of Dec 31 2013, the Underlying Properties had proved reserves of 13, 942 million barrels of oil and 56,400 MMcf of natural gas. These total are up from 2012, after more detailed surveys to define the holdings of the surveyed properties.
I like NDRO as a monthly dividend stock. In December 2013, Enduro Resource Partners LLC, the sponsor of the Trust, received drilling proposals from Pioneer Natural Resources ("Pioneer") for 3 gross (0.8 net) wells in the Wolfcamp play in the Midland Basin. The wells have been drilled and the completions were accomplished in late January. The wells are in production in February 2014. We expect to see an increase in production this Spring followed by an increase in distribution into the summer pushing the yield over 10% plus range. The annual report is on this webpage and you must select the pdf format.
Niska Gas Storage Partners LLC (NYSE:NKA) has a stock price today of $13.50 and paid the last quarterly dividend of $0.35 on February 18, 2014 for a yield of 10.37%.
Niska Gas Storage Partners owns and/or operates natural gas storage assets across North America, as the company operates the Countess and Suffield gas storage facilities (collectively, the AECO Hub) in Alberta, Canada, and the Wild Goose in California and Salt Plains gas storage facilities in Oklahoma. Each of these facilities market natural gas storage services for a range of customers that includes financial institutions, marketers, pipelines, power generators, utilities and producers of natural gas.
On February 25, 2014, Niska estimated that, for the fiscal year ending March 31, 2014, the adjusted EBITDA will range from $140 to $150 million, compared to the Company's previous estimate of $125 to $135 million. Their estimate for Cash Available for Distribution will range from $75 to $85 million, compared to its previous estimate of $60 to $70 million. Niska also estimates that for the fiscal year ending March 31, 2015, adjusted EBITDA will range from $120 to $140 million and Cash Available for Distribution will range from $60 to $80 million. Solid production numbers that will maintain a strong dividend into the future.
Niska has less risk than companies that explore, drill, market or refine crude, as the market drives what they can sell their product for. Niska's selling price includes the cost of goods to the company, plus the build-it expenses and profits when sold to the consumer. Less risk can limit the return an investor could expect. This company with a 10% plus dividend looks to be an excellent stock to add to your portfolio.
Atlas Pipeline Partners LP (NYSE:APL) has a stock price today of $31.55 and paid the last quarterly dividend of $0.62 on February 5, 2014 for a yield of 8.48%. Atlas Pipeline Partners is a midstream, provider of natural gas gathering, processing and treating services primarily in the Anadarko, Arkoma and Permian Basins located in the southwestern and mid-continent regions of the U.S. The company provides natural gas gathering services in the Appalachian Basin in the northeastern region of the U.S. and a provider of natural gas liquid transportation services in the southwestern region of the U.S. The company's general partner, Atlas Pipeline Partners GP, LLC, manages Co.'s operations and activities. APL owns and operates 14 active gas processing plants, 18 gas treating facilities,as well as approximately 10,100 miles of active intrastate gas gathering pipeline. Atlas Pipeline also owns a 20% interest in the West Texas LPG natural gas liquids transportation pipeline, operated by majority owner Chevron Corporation. APL's website has the annual report that is offering Class E preferred shares for $25.00 with a rate of 8.25%.
Like Niska Gas above, the company has less risk because it charges it cost for product, plus its expenses and a profit. These midstream companies don't make the huge profits, but can provide a steady, middle of the road income potential over the long investment opportunity.
Eagle Rock Energy Partners LP (NASDAQ: EROC) has a stock price today of $4.79 and paid the last quarterly dividend of $0.15 on February 14, 2014 for a yield of 12.52%. Eagle Rock Energy Partners is a limited partnership engaged in the following two businesses: Upstream operations, which focuses on developing and producing oil and natural gas property interests. The Midstream operations of moving product to consumers. The annual statement reported the adjusted EBITDA of $57.4 million. As of Dec 31 2013, the company's estimated net proved reserves in the Upstream business were 57.7 MMBoe, and 194.40 billion cubic feet. The increase of proven reserves over 2012 was driven by validation of current reserves and new finds.
CVR Refining (NYSE: CVRR) has a stock price today of $23.04 and paid the last quarterly dividend of $0.45 on March 10, 2014 for a yield of 7.8%. CVR Refining is an independent downstream energy limited partnership with refining and related logistics assets that operates in the mid-continent region. The company is a petroleum refiner, who owns and operates crude oil refineries in Coffeyville, KS and in Wynnewood, OK. In addition, the company controls and operates supporting logistics assets including pipelines, crude oil transports, a network of crude oil gathering tank farms, and crude oil storage capacity. CVRR's gathering area includes Kansas, Nebraska, Oklahoma, Missouri and Texas. Co. also has a contracted capacity on the Keystone and Spearhead pipelines that allow it to supply Canadian and Bakken crudes to its refineries.
I have written on CVRR over the last year and own units of the company. The company has a unique niche in the market that is not replaceable and maintains leverage in the markets in the Midwest. You can read my latest reports on CVRR here.
Northern Tier Energy LP, (NYSE:NTI) has a stock price today of $26.92 and paid the last quarterly dividend of $0.41 on February 28, 2014 for a yield of 6.11%. Northern Tier Energy is an independent downstream energy company. The company has two segments, refining and retail. The refining segment operates the St. Paul Park, MN refinery, terminal and related assets, and includes a 17.0% interest in the Minnesota Pipe Line Co., which owns and operates the Minnesota Pipeline, a crude oil pipeline system. The retail segment operated and franchised 236 SuperAmerica convenience stores in Minnesota, Wisconsin and South Dakota, which sells gasoline and diesel, tobacco products and consumable items such as beverages and prepared food. NTI also owns and operates SuperMom's Bakery, which prepares and distributes baked goods and prepared food.
I also own shares of NTI, as the company generated over $360 million of adjusted EBITDA and over $240 million of cash for distributions and the expectations of 2014 are better. The refinery has a complexity score of 11.5, which is above the 9.5 average in the U.S. It has access to many types of crudes and can select the best priced. The St. Paul Park refinery is a key hub for the upper Midwest and controls a strong market share. Read more about NTI on my latest article just released March 12, 2014.
I like all these companies and track them over time. Investors should review recent history, current operations and future goals of each investment. By conducting a risk analysis you can assess the right investments for you.
One of my favorite methods to reduce risk is take the cash dividends, which offsets your costs by returning cash to you on a monthly or quarterly basis.
Investors in retirement or close to can use dividends as a supplement to their income, however, please review your strategy on investments and ensure you have the leverage and safety of a diversified portfolio. How you balance that is your investment decision.
Disclosure: I am long CVRR, NTI, NDRO, SDR, CHKR. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.