SE management believes the assets as outlined above will produce 10% growth in earnings and dividends. At 12 times anticipated EBITDA and operational cash flow, share prices could climb from their current $35 to $42 - $49. In addition, with a current yield of 3.8% and the potential for a 10% dividend growth rate, SE could be considered a core energy holding for dividend growth investors.
Nothing is ever certain; however, utilities and pipelines expand their revenues through growth CAPEX. I bought most of my shares back in 2009 - 2010 when I saw that their CAPEX program going forward was in the $25 billion range. As they have cut over new pipes, they continue to find new growth opportunities and the backlog is still in that $25 billion range. With the MLP and DCP partnership they have multiple ways of funding. All of my close friends as well as children and grandchildren own this stock.