$9.47
-0.06 (-0.63%)
El Paso Corp (EP)
CAPS Rating:
An energy company, primarily operates in the regulated natural gas transmission and exploration and production sectors of the energy industry. Its purpose is to provide natural gas and related energy products in a safe, efficient and dependable manner.
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I like El Paso because it is a stable energy play. As a company involved in natural gas, I think they have a lot of room to grow. EP already transports more than 25% of daily natural gas consumption through its pipelines. Not only do they own a lot of pipes, they explore for and produce the stuff, which gives them a wide base of income.
The company has exploration and production programs (E&P) in USA (Safe), Brazil (Sexy) and Egypt (Hot, literally). The sexy and hot markets may not be where the final products end up, but if I'm in the energy business, Sexy and hot are two places I'd like to be.
EP is also a green player, joining the California Climate Action Registry and they were rewarded the Climate Action Leader star. They have billions in backlog contracts, an increasing dividend and have just reduced a lot of debt last year. A healthy ROE and strong margins lead me to believe EP is a good pick.