Since the Energy Select sector SPDR FUN XL down about 16% over the last month, it could be a good time to look for oversold stocks in the oil and gas sector. Despite investor concerns that a recession could slow the economy, natural gas prices are still at record highs.
Oct. 22 natural gas futures are trading around $6.796 per thousand cubic feet (MCF). If there is a cold winter, particularly in Europe, the global natural gas supply will be even more disrupted than it is now, since Russia has halted oil and gas flows European countries.
Here are two high-yielding stocks that could benefit from another natural gas supply shortage.
DT Midstream Inc. DTM offers a dividend yield of 5.05%, or $2.56 per share annually, makes quarterly payments, and has a mixed track record of growing its dividends.
DT Midstream operates two segments, including Pipelines and Gathering, as it generates revenue from pipeline, storage and gathering systems, all of which are substantially located in the US Midwest, Eastern Canada, the US Northeast and the Gulf Coast.
DT Midstream reiterates 2022 Adjusted EBITDA guidance of $770-$810 million and advances 2023 Adjusted EBITDA guidance of $810-$850 million.
DCP Midstream LP unit DCP offers a dividend yield of 4.70%, or $1.72 per share annually using quarterly payments, with a mixed track record of growing its dividend payments.
DCP Midstream is primarily a collection and processing partnership with large Permian asset bases, Scoop/Stack, Eagle Ford and DJ Basin, and its General Partner is a joint venture between them Philip 66 PSX and Enbridge ENB.
DCP Midstream reduced absolute debt by $200 million and ended the second quarter with a 2.9x leverage. The company also generated $254 million and $501 million in excess free cash flow…
