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The Top Five Eagle Ford Shale Oil Stocks $NS $VLO $MUR $BWP $FST



August 30, 2012 – Comments (0) | RELATED TICKERS: NS , VLO , MUR

The shale oil boom is turning out to be even bigger than anyone predicted.

Recently Money Morning told you about the Bakken oil shale boom. The Eagle Ford shale oil formation in south Texas is nearly as large, and production there is ramping up rapidly.

Eagle Ford is among the largest U.S. shale oil deposits, with recoverable reserves estimated as high as 7 billion to 10 billion barrels.

NuStar Energy (NYSE: NS): Spun off from Valero, NuStar is an oil transportation company that currently operates two pipelines out of Eagle Ford. Analysts have concerns about declining earnings per share and a disappointing return on equity, although that is partly due to heavy investments made in drilling infrastructure. On the other hand, cash flow is strong and revenue growth in the most recent quarter was up 40.6% year over year. And recall what CEO Anastasio said about Eagle Ford doubling its earnings. NuStar’s P/E of 19.5 is lower than the industry average of 21.7. Though shares are down 6.1% so far this year to $51.89, the one-year average price target is $58.50. But perhaps the best reason to look at NuStar – a master limited partnership (MLP) — is the dividend. It pays $4.38 for an eye-popping yield of 8.20%.

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