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6 Ways to Play the Bigger and Badder Bakken

New numbers show formation has double energy previously thought

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Canadian National Railway

CanadianNationalRailwayLogo e1283533588995 6 Ways to Play the Bigger and Badder BakkenWhile ONEOK is taking care of natural gas, Canadian National Railway (NYSE:CNI) is taking care of the oil. Crude by rail shipments continue to surge as oil output has expanded more quickly than pipeline capacity.

Crude shipments are now the fastest-growing product for several big railroads and Canadian National saw its crude-by-rail revenue jump 300% during the first quarter. CNI has begun expanding through new terminals to deliver Bakken crude to refineries in Western Canada and the Gulf of Mexico.

Canadian National isn’t the cheapest railroad out there, trading at a forward P/E of 15, but its current price could seem like a bargain as crude-by-rail volumes continue to surge. CNI also yields a decent 1.7%.


Article printed from InvestorPlace Media, http://investorplace.com/2013/05/6-ways-to-play-the-bigger-and-badder-bakken/.

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