Profit From The Coming U.S. Oil Boom With These Stocks: Chevron Corporation (CVX), Enbridge Energy Partners, L.P. (EEP)

Chevron Corporation (NYSE:CVX) is an extremely well-run company, and its great performance has been backed up by its share price returns over the last few years. Since the beginning of 2010, the stock is up more than 45%, not even including its strong 3% dividend.

Chevron Corporation (NYSE:CVX) reported full-year 2012 diluted earnings per share of $13.32, down slightly from $13.44 per share the year prior. Total revenue increased about 1% during the fourth-quarter year-over-year. Furthermore, the company is in a very strong financial position. At year end, cash and equivalents on the books totaled almost $22 billion, while the company’s net debt stands at only $12.2 billion.

Enbridge Energy Partners, L.P. (NYSE:EEP) reported a challenging 2012, with adjusted net income per unit coming in at $.99 versus $1.39 the previous year. This underperformance was driven primarily by struggles in the company’s natural gas operations. Nevertheless, the company raised its quarterly dividend during 2012 and now offers investors a tantalizing 7.5% yield.

The Foolish takeaway

Each of these three stocks is extremely well run and should continue to flow profits through to shareholders via big dividends and share buybacks for many years to come. The impending oil and gas boom in the United States means further potential for these companies. Investment-worthy stocks are in abundance within the energy sector, and companies engaged in the exploration, production, and development of oil and gas represent some of the market’s best opportunities going forward.

Chevron Corporation (NYSE:CVX) and BP both trade for modest trailing price-to-earnings ratios under 10 and offer dividends of 3% and 5.3%, respectively, while Enbridge Energy Partners, L.P. (NYSE:EEP) offers a dividend yield significantly higher than its peers. All three stocks offer great potential for fantastic future returns, and each should be on your watch list.

The article Profit From The Coming U.S. Oil Boom With These Stocks originally appeared on Fool.com and is written by Robert Ciura.

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