After spending more than a year at no better than a four-star rank, Copano Energy
With Copano's growing coverage of multiple shale plays and its high dividend yield, more CAPS members are liking the midstream services provider's position to benefit from the potential increasing use of domestic natural gas. The company has been investing in expansion projects over the last several quarters in areas such as the Barnett Shale combo play and the Eagle Ford Shale, where it's seen volume increases in both areas.
Producers have also been scurrying to increase activity in the Texas region. The Barnett Shale has attracted foreign interest from Total, and the area is top producer Devon Energy's
Copano's recently established joint venture with Kinder Morgan Energy Partners
Some CAPS members note that Copano may not be able to maintain such a high dividend payout, but the company does expect significant improvement in its distribution coverage this year because of its expansion initiatives and growth outlook.
Do you think Copano Energy deserves its improved status? Add your thoughts in the comments box below on this page, or head over to CAPS to rate the company and check out all the information and opinions the community offers, absolutely free.
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Fool contributor Dave Mock is thinking about digging wells in his backyard, just to see what turns up. He owns no shares of companies mentioned here. Chesapeake Energy is an Inside Value selection. The Fool owns shares of Chesapeake Energy, Devon Energy, and XTO Energy. The Fool's disclosure policy has a surefire way of extracting any information it needs from you.