These picks prosper from key trends

Article Excerpt

Oil and gas stocks have moved up as the U.S. and other economies recover. The war in Ukraine has also spurred prices. We recommend that most investors maintain exposure to the oil and gas industry as part of a balanced portfolio. But to cut risk, you should focus on producers with positive cash flow even at low energy prices. Here are two stocks that meet that requirement—and pay high dividends. COTERRA ENERGY, $22.78, is a buy. The company (New York symbol CTRA; TSINetwork Rating: Extra Risk) (www.coterra.com; Shares o/s: 768.3 million; Market cap: $19.1 billion; Dividend yield: 3.5%) produces and explores for natural gas and oil. Gas makes up 41% of the company’s output; the remaining 59% is oil. Coterra is the new name for oil-focused Cimarex Energy after its October 2021 acquisition of gas-focused Cabot Oil & Gas Corp. The combination of those two U.S. shale drillers—Cimarex, an operator in Texas, Oklahoma and New Mexico, and Cabot, in the Northeastern U.S.—brings together operations in different regions…