3 energy sector stocks with over 11% dividend yield

Summary

• Alliance Resources Partners, a coal mining energy company, has a dividend yield of 13.93% based on Monday’s closing price.
• Chesapeake Energy Corporation, an oil and natural gas exploration company, has a dividend yield of 12.18% based on Monday’s closing price.
• Kimbell Royalty Partners, an oil and natural gas royalty company, has a dividend yield of 11.90% based on Monday’s closing price.

US Energy stocks include some of the biggest participants in the petroleum industry. The sector also has companies that are engaged in the extraction, development, and distribution of petroleum. Renewable stocks also form a part of the energy sector.

The S&P 500 Energy sector has risen by 7.45% over the one-month period ending on August 1, 2023. Over the past month, the energy sector gains have kept the S&P 500 index buoyant, along with the technology sector.

Rallying oil prices have resulted in the energy index’s monthly gains. Tightening in global supplies has resulted in oil prices surging to multi-month highs over the previous weeks.

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On that note, let’s explore three energy sector stocks with a dividend yield of over 11%:

Alliance Resources Partners (NASDAQ: ARLP)

Alliance Resources is a coal mining energy company that generates majority revenue from its operations in the Illinois Basin. The company also has oil and gas royalties operations that include resources owned or leased by Alliance Resource Properties.

Alliance reported revenue of US$641.8 million in the June 2023 quarter, which marked a year-on-year jump of 3.5%. The net income was US$169.8 million during the quarter, which was a 3.8% increase over the previous corresponding period.

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Based on Monday’s closing price of US$20.1, ARLP has a P/E ratio of 3.52x. The stock’s price rose 11.11% over the one-month period ending on August 1, 2023. The company announced a cash distribution of US$0.70 per unit, payable on August 14, 2023, to shareholders as on the close of trading on August 7, 2023.

ARLP has a dividend yield of 13.93% based on Monday’s closing price.

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Chesapeake Energy Corporation (NASDAQ: CHK)

Chesapeake is an oil, natural gas and NGL or natural gas liquids development company.

For Q2 2023, Chesapeake’s net income was US$391 million, and its total net production was 3,653 mmcfe per day. Meanwhile, CHK’s net cash generated by operating activities was US$515 million in Q2 2023.

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Based on Monday’s closing price of US$84.45, the stock has a P/E ratio of 1.76x. By the end of trade on August 1, 2023, the stock rose 0.13% intraday and 0.32% monthly.

The company increased its dividend by approximately 4.5% during Q2 2023 to US$0.575 per common share. The dividend would be paid in September to shareholders on record as at the close of trade on August 17, 2023.

CHK has a dividend yield of 12.18% based on Monday’s closing price.

Kimbell Royalty Partners (NYSE: KRP)

Kimbell Royalty acquires and owns royalty interests in oil and natural gas mining properties in the US.

For Q1 2023, the company’s total revenue was US$66.91 million, while the net income was US$28.9 million. Meanwhile, Kimbell’s cash and cash equivalents for the three months ended March 31, 2023, were US$19.077 million.

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Based on Monday’s closing price of US$15.75, KRP has a P/E ratio of 8.26x. At the end of trade on August 1, 2023, the stock rose 8.49% monthly.

KRP has a dividend yield of 11.90% based on Monday’s closing price.