The Motley Fools have said exactly what I've been thinking for the past year or so: amass your fortune in the Bakken. Years ago I started investing in energy because I enjoyed following the industry, and to a great extent, I felt it was fairly stable, if not exciting. But now I think a young investor could do well by picking a few companies in the North Dakota Bakken and investing regularly.
The more I follow the Bakken, the more I think one could dollar cost average with any number of Bakken players and do very well over the long term. I agree with the Motley Fools: consistently invest -- that means on a monthly basis. If nothing else, put a little away each month and don't get worried about the day-to-day volatility.
It appears companies in the Bakken are being valued based on their assets in the Middle Bakken, and to some extent, perhaps, their assets in the Three Forks Sanish.
Among the bigger players, I like the following companies in the order given: WLL, CLR, EOG, BEXP.
Among the smaller players, I like the following companies in the order given: NOG, KOG (two different business models), and now OAS.
Among pipelines: MDU and Enbridge.
There are many, many more ways to play the Bakken and many companies in the Bakken to invest in. My intent is not to step on anyone's toes, just to give readers a general idea of what I'm thinking at this point in time.
Of the Bakken companies, I am dollar-cost averaging in CLR and NOG, and ENB, but to a lesser extent. I take advantage of dividends offered by EEP. I think I missed opportunities in EOG, KOG, and WLL. But I can't complain about how things have gone in the big picture.
I am most intrigued by Slawson but it is not publicly traded. I think MDU is perhaps the best long-term, most conservative (safe) company out there. It's had a couple of tough years, but when (if) the economy turns, it should do very well. Right now it's trading not far above it's 52-week lows. It has never (?) missed a dividend payment and has increased dividends for the past five years. I do not own MDU yet but for a conservative investor with a long horizon, it might not be a bad choice. I certainly think it is one of the best utilities nationwide. Cap and trade won't hurt it (it has plenty of wind energy to offset carbon footprint).
Bruce.
ReplyDeleteMDU Resources Increases Common Stock Dividend for 19th Straight Year
11/12/2009
Bismarck, ND
The MDU Resources Group (NYSE: MDU) board of directors today increased the company’s quarterly common stock dividend to 15.75 cents per share, for an annualized dividend of 63 cents per share. The previous quarterly dividend was 15.5 cents per share.
“We are very proud of our company’s record of returning value to shareholders,” said Harry J. Pearce, chairman of the board. “This is the 19th consecutive year that we have increased the common stock dividend, and we have a 72-year unbroken record of consecutive dividend payments that stretches back to 1937.
“Our diversified business strategy and aggressive cost management are providing strong cash flow and a healthy balance sheet, despite current economic conditions,” Pearce said.
The board of directors also declared dividends on preferred stock as follows:
•$1.12-1/2 per share on 4.50 percent Series Preferred
•$1.17-1/2 per share on 4.70 percent Series Preferred
•$1.27-1/2 per share on 5.10 percent Series Preferred
The dividends are payable Jan. 1, 2010, to stockholders of record Dec. 10, 2009.
MDU Resources Group, Inc., a Fortune 500 company and a member of the S&P MidCap 400 index, provides value-added natural resource products and related services that are essential to energy and transportation infrastructure, operating in three core lines of business: energy, utility resources and construction materials. MDU Resources includes natural gas and oil production, natural gas pipelines and energy services, electric and natural gas utilities, construction services, and construction materials and contracting. For more information about MDU Resources, see the company's Web site at www.mdu.com.
don
icpax
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