|Bid||6.40 x 800|
|Ask||6.42 x 1200|
|Day's Range||6.38 - 6.63|
|52 Week Range||5.31 - 9.53|
|Beta (5Y Monthly)||N/A|
|PE Ratio (TTM)||15.87|
|Earnings Date||Nov 06, 2019|
|Forward Dividend & Yield||0.54 (7.99%)|
|Ex-Dividend Date||Nov 17, 2019|
|1y Target Est||8.39|
Markets ended 2019 with an overall gain of 29% on the S&P 500. It was a fine cap to end the year, but will it last? Not so sure; Wall Street is predicting a far more modest run in 2020, with the end-year targets averaging just a 2% gain.The outlook reflects relative risk assessment, rather than depression. With tensions rising in the Middle East, a US Presidential election just nine months away, 2020 is starting out with plenty of uncertainty on the horizon.That uncertainty has investors worried, and when investors get worried they look for a safety net in their investment strategy. It’s a draw that naturally pulls them to dividend stocks. Dividend stocks don’t offer the same high share appreciation as growth stocks, but they do offer a steady income stream. And when markets a volatile, a steady income stream is a hot commodity.Savita Subramanian, Bank of America’s head of US equity and quantitative strategy, put this way in her ‘year ahead’ outlook: “How to hedge against things going wrong? We now prefer utilities (pure domestic, stable earnings) over staples as a way to generate high dividend.”Utilities – electricity, water, and the like – are strong option for dividends – their reliable cash flows make it easy for them to maintain the payouts. But you can drill down further, to a more basic level, because the utilities won’t run without commodities. And that brings us to the energy companies.The energy industry has the hallmarks of a recession-proof stock, perfect for periods of volatility. It operates in an essential economic niche, so it will always find a customer base, and it generates high cash flows, which it uses to fund operations and pay out dividends.We’ve used the TipRanks Stock Screener tool to sort through over 6,500 stocks, looking for great bargains in the energy industry. Setting the filers to show us small- and mid-cap stocks, with upside potentials and dividend payouts exceeding 5%, and Buy ratings from the Wall Street analyst corps, we’ve cut that list to a manageable 68. Here are three that should interest you.Falcon Minerals Corporation (FLMN)We’ll get started with Falcon, a small oil and gas company operating in the South Texas Eagle Ford shale formation. The Eagle Ford is smaller than the great headline-grabbing Permian Basin to its west, but a University of Texas study last year predicted that the formation can support up to 5,000 new wells this year, giving it a $20 billion economic impact on its local region. Falcon’s drilling leases are in prime territory.In the company’s most recent reported quarter, Q3 of last year, EPS missed the estimates by 25%, coming in at 6 cents. Revenue also missed, by 10.8%, and came in at $15.9 million. Despite the misses, FLMN shares rose in the last two months of 2019; the company’s strong dividend position helped to buoy the stock.Falcon returned $11.6 million, an impressive 72.9% of its total Q3 revenues back to investors through its quarterly dividend. The payment, 13.5 cents per share, annualizes to 54 cents and shows a robust yield of 7.83%. That yield is almost 4 times the average return among S&P listed stocks – and fives times higher than a typical Treasury bond yield. Falcon has a commitment to paying out its dividend, and has a history of adjusting the payment to ensure that it remains sustainable.Reviewing FLMN for institutional brokerage firm JonesTrading, 4-star analyst Eduardo Seda sees the company as a growth prospect, and singles out the dividend for praise. He wrote, “We still believe FLMN is well positioned to continue benefitting from expanding the breadth of its asset base… we continue to project strong free cash flows of $53.7 million in 2020, and $63.8 million in 2021… the company’s dividend policy of paying out substantially all of its free cash flow in the form of a regular quarterly dividend is intact, and, positioned for continued growth based on current fundamentals.”Seda adds that FLMN’s is variable, as the company “pay[s] out substantially all (roughly 90%+) of its free cash flow in the form of a regular quarterly dividend.”In his review, Seda rates FLMN a Buy, and puts a $10 price target on the stock. This target suggests room for 44% growth to the upside this year. (To watch Seda’s track record, click here)All in all, Falcon Minerals gets a Strong Buy from the analyst consensus, with 5 Buy reviews against a single Hold. The stock sells for a bargain price, just $6.82, and the average price target of $8.38 indicates a 23% upside potential. (See Falcon stock analysis at TipRanks)Berry Petroleum Corporation (BRY)Our second stock, Berry, is another small-cap oil producer in the American West. Berry has operations in Colorado, Utah, and California, with combined reserves comprising 86% crude oil. Berry has identified over 5,600 drilling locations, and operates over 3,000 producing wells. The company’s current production mix is 81% oil, 17% natural gas, and 2% natural gas liquids, with 72% of total production coming from the California operations.Strong oil operations makes for strong earnings, and Berry beat the estimates in Q3 2019. Revenues came in at $194.7 million, 21% over the forecast and up 3.6% year-over-year. The EPS beat was more modest – the 40-cent figure was a penny higher than the 39-cent estimate. It was the first time in a year that Berry had beaten the expectations.Berry went public in the summer of 2018, and since then has maintained a reliable dividend. The payment started at 9 cents quarterly, but has been held at 12 cents for the past 5 quarters. The annual payment of 60 cents gives a yield of 5.76%. The payout ratio, a comparison of the dividend to quarterly earnings, is a low 30%, indicating that the payment is easily sustainable for the company.Kashy Harrison, from Piper Sandler, reviewed BRY and came away impressed by the company’s ability to cope with a changing regulatory environment in California. He wrote in his comments, “The more near-term consideration was the double-edged nature of operating in California. Specifically… BRY possesses a differentiated business model when compared to tight oil development (i.e. low base declines, decades of historical data, robust operating margins after maintenance capital, minimal competition, etc.). However, those advantages come with a significantly more adverse regulatory environment that operators in Texas generally don't have to deal with…” Harrison sees California’s regulatory regime as forcing BRY into a more competitive configuration than producers in less-regulated Texas.Harrison gives this stock a Buy rating, and backs it with a $12 price target. His target implies an upside potential of 44%. (To watch Harrison’s track record, click here)Overall, Berry gets a Moderate Buy consensus rating, based on mixed reviews. The recent ratings behind the consensus include 3 Buys, 4 Holds, and 1 Sell. Like Falcon, the stock sell for a bargain – just $8.33 per share. The average price target of $10.57 suggests room for a 26% upside. (See Berry Petroleum's price targets and analyst ratings on TipRanks)Equitrans Midstream Corporation (ETRN)Not every energy player actually extracts the oil and gas. The midstreaming sector – that is moving the operation of oil and gas transport, pipeline, and storage networks – is huge and growing, as extraction companies have to get their product to markets and to customers. There has been a trend in recent years for large energy conglomerates to spin off midstream operations onto subsidiaries and limited partnerships, allowing exploration/extraction operators and midstream companies each to specialize. Equitrans in the midstream spin-off of EQT, and has operated independently since the middle of 2018.Volatile oil prices in 2019 took a toll on Equitrans in the second half. The company’s Q3 earnings – the most recent released – were disappointing. Revenues came in at $408.43 million, below the $417.39 million expected. EPS was worse, with a net loss of 26 cents per share. The company was able to compensate by drawing $136 million cash from its ownership interest in EQM.The rough quarter did not stop Equitrans from paying out its dividend. The company started the quarterly payments in February 2019, and has paid consistently since. The current 45 cent quarterly payment annualizes to $1.80 per share, or a most impressive yield of 13.45%. That’s nearly seven times the S&P average, and qualifies Equitrans as a dividend champion.Wolfe Research analyst Alex Kania is not worried about the recent quarterly miss, writing, “Via its ownership stake in EQM, Equitrans Midstream has significant cash flow growth potential over the next several years as key contracted growth assets go into service, including Mountain Valley Pipeline and create a platform for future growth. We see Equitrans' high yield with visible dividend growth as compelling at current levels, and a simplified structure should help the story over time.”Kania sets a $21 price target on the stock, suggesting a 56% upside to support his Buy rating. (To watch Kania’s track record, click here)Cautious optimism circles this midstream player, as TipRanks analytics exhibit Equitrans as a Moderate Buy. Out of 6 analysts tracked in the last 3 months, 3 are bullish on ETRN stock, 2 remain sidelined, and 1 is bearish. With a return potential of nearly 9%, the stock’s consensus target price stands at $14.50. (See Equitrans' stock-price forecast on TipRanks)
This article is written for those who want to get better at using price to earnings ratios (P/E ratios). We'll show...
Falcon Minerals Corporation ("Falcon" or the "Company") (NASDAQ: FLMN, FLMNW) announced today that the Company will be participating in the Goldman Sachs Global Energy Conference 2020 on Tuesday and Wednesday, January 7th and 8th, 2020 at the Loews Miami Beach Hotel in Miami Beach, FL. Bryan Gunderson, Chief Financial Officer at Falcon, will be hosting investor meetings at the conference.
Is Falcon Minerals Corporation (NASDAQ:FLMN) a good dividend stock? How can we tell? Dividend paying companies with...
Is Falcon Minerals Corporation (NASDAQ:FLMN) a good equity to bet on right now? We like to check what the smart money thinks first before doing extensive research on a given stock. Although there have been several high profile failed hedge fund picks, the consensus picks among hedge fund investors have historically outperformed the market after […]
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Falcon Minerals Corporation , a leading oil and gas minerals company, today announced financial and operating results as well as the dividend for the third quarter ended September 30, 2019.
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Osprey Energy Acquisition Corp. (FLMN) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Falcon Minerals Corporation today announced that the company will host an earnings conference call for the third quarter 2019 on Friday, November 8, 2019 at 9:00 am ET.
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Falcon Minerals...
The markets are volatile these last few months, with S&P 500 seeming unable to hold onto its gains, slipping 3.5% from its July 26 peak of 3,025 and swinging 100 points or more four times since the beginning of August. The rapid-fire shifts have investors yearning for stability – after all, investing is about making a profit, and profits are more likely in a stable, upward-trending environment.Fortunately, some stocks are prepped to deliver profits whether the markets go up or down. Dividends represent income for shareholders, paid out regardless of general market conditions, and there are plenty of stocks out there which pay out handsomely.We’ve used TipRanks’ Stock Screener to search the market for Strong Buy-rated investments with reliable high-yield dividend payouts – and a low cost of entry. With these attributes, a profit-minded investor will have to look twice.New Residential Investment (NRZ)Our first stock to look at, and the one with the highest-yielding dividend, is a real estate investment trust – a company that owns various properties and uses them to generate income. Under US tax law, these companies are heavily incentivized to pay out 90% or more of their income in the form of dividends. This makes the REIT a go-to stock sector for profit-oriented investors.Based in New York, New Residential operates across the real estate industry, with portfolio holding in mortgage servicing, real estate securities, residential and commercial loans, and corporate properties. The company’s holdings total over $600 billion in value, and generate more than $960 million in net income from $2.37 billion in annual revenues.The recent interest rate reductions by the Federal Reserve have impacted NRZ’s bottom line, as the company is heavily invested in the mortgage sector. However, like most REITs, New Residential has a high cash flow and can easily maintain its dividend payment. At $0.50 per quarter, that payment may look small – but the stock is priced at just $14.98, making the annual dividend yield a robust 13.35%. For comparison, the average stock on the S&P 500 yields a 2% dividend.NRZ’s profit potential has drawn positive attention from Wall Street’s analysts. Initiating coverage of the stock with a Buy rating, BTIG’s Giuliano Bologna wrote, “…we believe investors should focus on NRZ’s unique portfolio of assets, the buildout of recapture capabilities and ancillary services that should improve the overall return…” Referring to the company’s dividend and cash flow, he added, “We believe NRZ has sufficient cash flow to maintain the company’s quarterly dividend of $0.50 and will benefit from additional cash flow contribution from call rights and the securitization/sale of originated loans during 2H19.” In line with his bullish outlook, Bologna set an $18 price target on the stock, indicating confidence in a 20% upside. (To watch Bologna's track record, click here)Furthermore, Piper Jaffray’s 5-star analyst Kevin Barker also gave this stock a Buy rating. He said in his note, “…slight pressure to New Residential's tangible book value in Q3 is more than priced into the shares. Further, recent acquisitions are further evidence New Residential will continue to build out an operating company that will attempt to squeeze out revenue from all touch points on its large portfolio.”Overall, New Residential has a Strong Buy rating from the analyst consensus. This is derived from 4 buys assigned in the last two months – so the consensus is unanimous. As indicated above, the stock sells for $14.98. The average price target is $18, which implies room for 20% upside growth. (See NRZ stock analysis on TipRanks)Two Harbors Investment (TWO)Two Harbors, like NRZ above, is a real estate investment trust. TWO manages the natural risk of the real estate market by diversifying its portfolio – the company is considered a hybrid REIT, meaning it holds both properties and mortgages among its assets. This strategy mitigates risk for the company while bringing the benefits of two separate income streams.The success of Two Harbors’ hybrid strategy can be seen in the company’s results. It reported $201 million net income in the last quarter. Two Harbors CEO Thomas Siering said, “Our strong return on book value was driven by our acute focus on portfolio positioning and hedging. Additionally, improvements in financing continue to present a long-term opportunity for our business…”Along with its solid income, TWO continued to pay out its regular dividend. At $1.60 annualized, the quarterly payment is 40 cents – but that comes from a share price of $13.31, making the yield 12.02%, or six times the S&P average. Two Harbors has been raising its dividend steadily over the past two year, and the payout ratio – which compares the annualized dividend to the annual EPS – is an impressive 84.7%.All of this has brought RBC Capital analyst Kenneth Lee to reiterate his Buy rating on this stock. Publishing his comments on October 2, Lee said, “Two Harbors [has] less rate sensitivity due to differentiated agency MBS/MSR pairing strategy along with a unique, legacy credit-oriented portfolio. Given the current macro backdrop and our preference for credit-oriented REITs, we are initiating coverage with an Outperform rating…” Lee gives TWO a $15 price target, implying an upside potential of 12%. (To watch Lee's track record, click here)Lee is not the only analyst impressed by Two Harbors. The company’s Strong Buy consensus rating comes from 3 "buy" and "1" hold give in the last three months. And at $14.75, the average price target suggests an upside of 10% over the $13.31 current share price. (See Two Harbors stock analysis on TipRanks)Falcon Minerals (FLMN)With our third high-yield dividend stock, we are leaving the real estate market and entering the energy industry. Falcon Minerals is a small-cap oil & gas company operating in the Eagle Ford Shale of south Texas. While overshadowed by the Permian Basin, also in Texas, the Eagle Ford Shale is known to be an oil-rich and gas-rich formation. A study sponsored by University of Texas San Antonio indicates that the formation may support as many as 5,000 new wells by 2020, which will bring up to 68,000 jobs to the region and have a potential $21 billion impact on the regional economy. And Falcon owns mineral rights in the core of the formation.In addition to owning mineral rights, Falcon also has active wells drilling in the area. We can note here that, at over 11 million barrels per day, the US is now the world’s largest crude oil producer. Texas is the largest oil-producing state, putting Falcon in the epicenter of the world’s oil markets.They don’t call oil ‘black gold’ for nothing. Falcon reported a $13.4 million free cash flow in the second quarter, and a net income of $8.9 million. It was more than enough to support the 15-cent quarterly dividend – which translated to a yield of 10.95% annualized. Even better, Falcon has 107 wells drilled and waiting on completion. In the Q2, the company averaged 9 active wells; with 12 times as many waiting in the wings, the company’s income outlook is impressive.Building on this background, analyst Jeff Grampp of Northland gives FLMN a Buy rating, saying, “The long-term outlook is positive with activity levels trending up, smaller acquisitions continuing at a healthy clip and Hooks Ranch wells now being drilled… Activity levels on FLMN's acreage are trending higher. 11 rigs are currently operating on FLMN acreage, up from the nine rig average in 2Q19 and five rigs rig average in 1Q19.” Grampp puts a $7.50 price target on this stock, implying a strong upside of 36%.Falcon has an overall analyst consensus of Strong Buy, based on 3 buys and 1 hold set in the last three months. The stock is a bargain price, at $5.48, as the $8.38 average target suggests an impressive potential upside of 52%. (See Falcon Minerals stock analysis on TipRanks)
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NEW YORK, NY / ACCESSWIRE / August 5, 2019 / Falcon Minerals Corp. (NASDAQ: FLMN ) will be discussing their earnings results in their 2019 Second Quarter Earnings to be held on August 5, 2019 at 9:00 AM ...
Falcon Minerals Corporation today announced that the Company has appointed Bryan C. Gunderson as its Chief Financial Officer. Mr. Gunderson most recently served as Executive Vice President - Finance of Nine Point Energy, a private oil & gas exploration and production company, where he was responsible for corporate finance, budgeting and financial controls.
Dividend paying stocks like Falcon Minerals Corporation (NASDAQ:FLMN) tend to be popular with investors, and for good...