Spectra (SE) Gets Boost as CEO Ebel Makes Case for Cramer
Tweet Send to a Friend
Get Alerts SE Hot Sheet
Down)
Trade SE Now!
Spectra Energy (NYSE: SE) shares are higher following comments from CEO Greg Ebel on Jim Cramer's Mad Money talkie box program late Thursday.
According to Ebel, Spectra's $1.2 billion project to pump more nat gas to North New Jersey and New York City will save folks in the region $700 million per year in energy costs over oil and coal. Not to mention the effort will put an additional 5,000 to work.
Think the U.S. doesn't need all the nat gas that is building up in stockpiles? Ebel thought of that too, now aiming to send some of the resource to the Great White North. That's right... Canada. Spectra has plans to build a pipeline to Canada in the works.
Investors in Spectra might be doing it in part for the dividend. The company currently doles out $1.12 annually for a total yield of 4 percent. Though some might express concern that Spectra's eyes might be bigger than its stomach with its pipeline expansion efforts, Ebel is quick to rebuke that argument. He said before the company builds a pipeline, it enters contracts that spans 10 to 20 years. Spectra will get paid on the pipeline whether an iota of gas travels through it or not.
That's one of the reasons Spectra is forecasting an 8-cent-per-year dividend boost over the next several years. That's a little Rachmaninoff for dividend investors' ears.
Cramer agreed with Ebel, saying investors should forget Greek elections and Spanish bond auctions; all the excitement needed its right here at home. And its name is Spectra Energy.
Shares are 0.4 percent better on the session.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
According to Ebel, Spectra's $1.2 billion project to pump more nat gas to North New Jersey and New York City will save folks in the region $700 million per year in energy costs over oil and coal. Not to mention the effort will put an additional 5,000 to work.
Think the U.S. doesn't need all the nat gas that is building up in stockpiles? Ebel thought of that too, now aiming to send some of the resource to the Great White North. That's right... Canada. Spectra has plans to build a pipeline to Canada in the works.
Investors in Spectra might be doing it in part for the dividend. The company currently doles out $1.12 annually for a total yield of 4 percent. Though some might express concern that Spectra's eyes might be bigger than its stomach with its pipeline expansion efforts, Ebel is quick to rebuke that argument. He said before the company builds a pipeline, it enters contracts that spans 10 to 20 years. Spectra will get paid on the pipeline whether an iota of gas travels through it or not.
That's one of the reasons Spectra is forecasting an 8-cent-per-year dividend boost over the next several years. That's a little Rachmaninoff for dividend investors' ears.
Cramer agreed with Ebel, saying investors should forget Greek elections and Spanish bond auctions; all the excitement needed its right here at home. And its name is Spectra Energy.
Shares are 0.4 percent better on the session.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- Will Erickson Air-Crane (EAC) Stock Crash and Burn?
- Apple (AAPL) said to be focus of Senate offshore tax hearing - Bloomberg
- Amid Tesla (TSLA) Squeeze, Option Prices Hit Record Highs
Create E-mail Alert Related Categories
Insiders' BlogRelated Entities
Jim Cramer, Dividend
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
